Amidst this backdrop of risk and reward, Voltamp Transformers, a leading transformer manufacturing company in India, has emerged as one of the biggest wealth creators.
Wealth creator
The company’s shares have consistently maintained an upward trajectory, rising from ₹2,518 apiece in February 2023 to the current market price of ₹11,970, delivering a staggering return of nearly 375%.
Notably, out of the last 16 months (including May), the stock finished 14 in the green, with January 2024 registering the highest monthly gain of 23.4%, closely followed by December 2023 with a rally of 18.7%.
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For long-term, the stock has gained 923% in three years and 1079% in five years. Over the last 11 years, the stock has delivered a return of 2918%, turning an investment of ₹1 lakh into over ₹30 lakh.
Voltamp Transformers specialises in the design, manufacturing, and supply of a wide range of transformers. Its product portfolio includes power transformers, distribution transformers, dry type transformers, resin-impregnated dry-type transformers (RIT), unitised substations (USS), and induction furnace transformers.
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These products serve various sectors such as power generation, transmission, and distribution, as well as industries like steel, cement, petrochemicals, railways, and infrastructure.
Stellar performance in Q4
In the recent March-ending quarter (Q4FY24), the company reported its highest-ever revenue, EBITDA, and PAT. Its revenue from operations improved to ₹508 crore from ₹440 crore in Q4 FY23, while PAT jumped to ₹94 crore, an improvement of 22% YoY.
For the full fiscal year (FY24), the company reported revenue of ₹1,616 crore, a 16.7% YoY surge, and the profit after tax jumped by 53% YoY to ₹200 crore. Following the stellar financial performance, the company proposed a dividend payment of ₹90 per equity share on a face value of ₹10, the highest in the company’s history.
According to the company’s Q4 earnings report, its order book at the end of March 31, 2024, was ₹1,859 crore, marking a 33% increase compared to FY23. The company stated that it aims for full utilisation of manufacturing capacity to ensure healthy growth of sales and service revenue in both value and volume terms.
Additionally, the company mentioned that it will only pursue profitable growth opportunities to maintain a healthy balance sheet.
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Promising outlook
The power dynamics in India are rapidly changing as the nation grapples with the dual challenges of meeting burgeoning power demand and committing to a sustainable future. In the near to medium term, the outlook for the power sector in India is promising and transformative.
The ongoing shift towards renewable energy, with a focus on capacity addition, presents opportunities for companies like Voltamp Transformers. The Indian power sector is slated for sustainable growth and will be one of the key sectors enabling the country’s future development.
According to projections by the International Energy Agency, India is poised to add electricity demand equivalent to the current consumption of the United Kingdom over the next three years, underscoring the substantial growth anticipated in the energy sector.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 24 May 2024, 06:21 PM IST