Voltamp Transformers - Key Beneficiary Of Industrial Capex Revival: ICICI Securities Initiates Coverage

Orderbook at an all-time high.

Transformers seen at a power sub-station. (Source: pxhere.com)

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ICICI Securities Report

Voltamp Transformers Ltd. is a key player in the transformer manufacturing space with a domestic market share of 15% (as per management), catering to diversified sectors (85% of revenue comes from private customers).

Over the years, Voltamp has developed strong relationship with clients, which has helped it have a large installed base of more than 60,000 transformers (as of March 2022) across sectors in India and overseas markets.

We believe Voltamp stands to be a key beneficiary of energy transition, private capex revival and production linked incentive initiatives of the government in the manufacturing space.

Company’s current orderbook at ~Rs 9 billion, strong balance sheet and improved outlook on profitability would likely keep earnings growth strong in the next three years.

We have modelled a revenue/earnings compound annual growth rate of 11%/16% over FY22-FY25E.

Further, pick-up in power distribution capex and investments in the manufacturing sector could lead to growth in Voltamp’s orderbook.

Click on the attachment to read the full report:

ICICI Securities Voltamp_Transformers Initiating Coverage Note.pdf
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Also Read: TTK Prestige - Erasing The Tag Of A Slow Growth Company: ICICI Securities

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