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

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.

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