Transformer stock in focus after receiving ₹263 Cr order from Gujarat Energy Transmission Corp - Trade Brains

by Trade Brains | Nov 5, 2024 | 4:50 pm | News, Trending News | 0 comments

Shares of transformer stock engaged in manufacturing various types of oil-filled Power & Distribution Transformers draw investor interest after securing an order from Gujarat Energy Transmission Corporation for the supply of various ratings of Power Transformers for the value of Rs.263.33 crore.

Price Movement

In Tuesday’s trading session, Voltamp Transformers Ltd’s share price fell in Tuesday’s trade to Rs.10,625.00 per share, falling 4 percent from the previous close of Rs.11,111.15 per share. Over the past year, the stock has delivered a return of over 100 percent.

Order Details

On November 5, 2024, Voltamp Transformers Ltd (VTL) secured a significant order from Gujarat Energy Transmission Corporation Limited (GETCO) valued at Rs. 263.33 crore. This contract involves the supply of power transformers across various ratings, which is crucial for enhancing the electrical infrastructure in Gujarat.

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With this addition, VTL’s total order book stands at a robust Rs.1,738.33 crore as of November, providing strong near-term revenue visibility.

Product Range & Manufacturing Capacity

Voltamp provides a diverse selection of transformers, including oil-filled power transformers up to 160 MVA (220 kV class), distribution transformers, and dry-type transformers up to 12.5 MVA (33 kV class). Additionally, they produce compact substations and ring main units.

Voltamp operates four manufacturing plants in Gujarat, with a combined installed capacity of 14,000 MVA. These facilities are equipped with advanced technology and adhere to international standards.

Target Recommendation

Prabhudas Lilladher has issued a “Buy” recommendation for Voltamp Transformers Limited, setting a target price of Rs.14,326 per share, which reflects an upside potential of 35 percent.

Financial Performance

According to its recent financial updates, the company reported Revenue from operations of Rs.398 crore in Q2 FY25, 4.4 percent more when compared to Rs.381 crore in Q2 FY24. Net Profits grew 12 percent to Rs.76 crore from Rs.68 crore in the same period.

Shareholding Pattern

As of the September 2024 shareholding pattern, promoters hold a 38.00 percent stake in Voltamp Transformers, with Foreign Institutional Investors (FIIs) holding 28.50 percent, Domestic Institutional Investors (DIIs) at 22.60 percent, and retail investors owning 10.82 percent.

Company Profile

Voltamp Transformers Ltd is a leading manufacturer specializing in a range of transformers, including oil-filled power and distribution transformers and dry-type transformers. The company has a strong market presence, supplying its products to a variety of public sector undertakings, multinational corporations, and large cooperatives.

Written by – Siddesh S Raskar

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