Voltamp Transformers (VAMP) has a strong market position, with a 15% share in the industrial segment. This is due to its expertise in design and manufacturing, as well as its wide range of products that cater to a diverse customer base. Private clients make up about 85% of the company's revenue.
We believe that VAMP is well-placed to benefit from a multi-year growth cycle, driven by private capex revival and the government's PLI-driven manufacturing push. The company can also tap into new opportunities in solar energy, railway capex, EV charging infrastructure, green hydrogen, and data centers.
With its established track record, VAMP is expected to see high double-digit revenue growth, driven by capacity expansion and a lean balance sheet. However, we have trimmed our margin estimates due to increasing industry supply from planned capacity additions by several players.
We maintain a BUY recommendation on Voltamp Transformers, with a target price of Rs10,000. This values the stock at 25 times the estimated earnings per share for FY28. Investors should note that this is a reduction of about 12% from our previous target price.
Disclaimer: The views expressed are those of the investment expert and not of the website or its management. Investors should consult certified experts before making any investment decisions.
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