The price of Voltamp Transformers’ shares increased on Friday during intra-day trading on the BSE, reaching a new high of Rs 3,283. The shares have increased in price for four straight sessions and by nearly 14% overall.
Voltamp Transformers’ market price has increased by 77% over the last two months as a result of the company’s strong March quarter (Q4FY22) results.
Voltamp’s sales increased by 36.3% year over year (YoY) to Rs 387 crore in Q4FY22 due to the execution of strong order inflows. Profit after tax (PAT) also increased by 67% YoY, from Rs 31.1 crore in Q4FY21 to Rs 51.9 crore in Q1FY22.
Ebitda margins increased by 561 bps YoY to 17.2%, and earnings before interest, taxes, depreciation, and amortization (Ebitda) increased by 102% YoY to Rs 66.7 crore. The margins were higher primarily as a result of a decrease in employee costs and a strong gross margin. The board also suggested a 35 rupee dividend per equity share.
Manufacturing of electrical transformers is what Voltamp Transformers does. Since many years ago, the company has been debt-free, and a sizable portion of their surplus investments are diversified portfolios.
Given its business model that is centered on the industrial sector, analysts think the company is among the best bets for a future upturn.
On June 14, 2022, HDFC MF acquired an additional 50,000 shares, or 0.35 percent, of Voltamp Transformers through one of its numerous programs. Following the acquisition, HDFC MF’s ownership of the business rose to 5.25 percent from 4.91 percent. According to data, HDFC MF owned 450,390 equity shares, or 4.45% of Voltamp Transformers, as of the end of the March 2022 quarter.
