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

The brokerage is positive on Voltamp Transformers owing to its strong market position, robust demand momentum and solid financial discipline, hence maintain 'Buy' rating with target price of Rs 10,001..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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.Click on the attachment to read the full report:.Union Budget 2025 Impact On Cement, BFSI, Capital Goods, Metals, Mining And More— Read IDBI Capital's Analysis.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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

The brokerage believes 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.

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