Voltamp Transformers Q2 Review- Decadal High Gross Margin Adds Glamour To Revenue Growth: Yes Securities

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Voltamp Transformers Ltd. reported another strong print during Q2 FY24 driven equally by both volume and realisation (+20% YoY). The company reported a decadal high Q2 gross margin aided by easing of commodity cost pressures amid a strong demand environment. Order Inflow of~Rs 9 billion and revenue visibility of Rs 14.9 billion (up 25% QoQ) augurs well for strong performance for the next few quarters. Looking forward Voltamp Transformers remains optimistic on the business outlook aided by steady growth in domestic demand from metals, data centres, green energy, pharma, automobiles, etc. Though order booking momentum is expected to sustain, competitive intensity especially in lower voltage class transformers has increased which leaves little room for margin expansion. We are building in a 22% earnings per share compound annual growth rate over FY23-25E mainly driven by revenue growth while margin is expected to remain flat in the near term. Voltamp Transformers is currently trading at valuations of 20.3 times/16.1 times FY24E/25E and excluding other income it trades at price/earning of 27.1 times/21.1 times FY24E/25E EPS. We maintain our 'Buy' rating with a revised target price of Rs 5,836 based on 20 times FY25E earnings..Click on the attachment to read the full report:.Apar Industries Q2 Review - Strong Combination Of Domestic, Export Tailwinds; Upgrade To 'Add': Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Voltamp Transformers Q2 Review- Decadal High Gross Margin Adds Glamour To Revenue Growth: Yes Securities

Gross margin of 29.3% (+550 bps YoY, 240 bps QoQ) was at a decadal high.

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Voltamp Transformers Q2 Review- Decadal High Gross Margin Adds Glamour To Revenue Growth: Yes Securities

Gross margin of 29.3% (+550 bps YoY, 240 bps QoQ) was at a decadal high.

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