Voltamp Transformers Q3 Review: IDBI Capital Maintains 'Buy' On The Stock, Revises Target Price — Here's Why

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IDBI Capital Report

Voltamp Transformers ltd. reported an in line performance in Q3 FY25. Revenue grew by 18% YoY while Ebitda and PAT declined by 6% and 22% respectively on YoY basis. This was also owing to Q3 FY24 being an exceptionally strong quarter.

Current demand upcycle is well diversified across a multitude of sectors, with industrial capacity expansions being funded in a disciplined manner, largely from internal accruals of corporates.

Voltamp has been a preferred vendor amongst its clients due to its prudent execution track record and working capital management despite the cyclical nature of the business. We believe growth will be soft over FY25 and FY26 owing to capacity constraints and the 6,000 MVA capacity coming up in Q1 FY27 will drive the next leg of growth.

We fine tune our estimates to factor in moderation in realisations per MVA We maintain our Buy rating on the stock with revised target price of Rs 10,001 at 25 times FY27 earnings estimates

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