Fundamental Analysis

VOLTAMP TRANSFORMERS LTD.

Ticker : 532757
BUY: ₹ 2062.40
Target: ₹ 2289.00

Voltamp Transformers Limited is an oil-filled power, distribution, and dry type transformer manufacturing company based in Vadodara (Gujarat) since 1967. On a standalone quarterly front, the company recorded an increase of 79.2 per cent in the net sales & operating income, which stood at Rs 314.95 crore for Q2FY22 as compared to Rs 175.75 crore reported for Q2FY21. The operating profit squeezed by 2.28 per cent, standing at Rs 42.05 crore in Q2FY22 as compared to the operating profit of Rs 43.03 crore recorded in Q2FY21. The company reported a net profit of Rs 30.11 crore in Q2FY22 as compared to Rs 32.06 crore recorded in Q2FY21. The company, which is debt-free for many years now, has a decent number of investments of its surplus funds in diversified portfolios along with efficient working capital management. Also, it has a diverse industrial client base, which is not dependent on any particular industry segment or region to book orders. Hence, we recommend BUY.