Multibagger stock Voltamp Transformers share price rallied over 3% on Tuesday after brokerage firm Emkay Global Financial Services initiated coverage on the stock with a bullish view expecting a decent upside potential. Voltamp Transformers shares surged as much as 3.18% to Rs13,535.75 apiece on the BSE.
Voltamp Transformers is one of the leading companies in the domestic transmission equipment space. Emkay Global initiated coverage on Voltamp Transformers shares with an ‘Add’ recommendation and a target price of ₹14,600 per share, expecting an upside of over 11% from Monday’s closing price.
The brokerage firm is bullish on the stock owing to the company’s private capex recovery, capacity expansion, lean balance sheet, and strong liquidity position. The company’s dominant market position is built on its design and manufacturing prowess, and presence across the product range catering to diversified sectors.
“We think the company is well placed to ride a super-growth cycle over the coming 5-7 years, backed by private capex revival and the GoI’s PLI initiatives in the manufacturing space. Growth in solar energy set up, railway capex, EV charging infra, green hydrogen capacity, and Data Centers further expands the TAM for Voltamp Transformers,” said Ashwani Sharma, Senior Research Analyst at Emkay Global Financial Services.
Moreover, the company’s increasing focus on capacity expansion and lean balance sheet should drive high double-digit top-line growth with industry-leading returns, Sharma added.
The brokerage firm projects the company to deliver FY24-27E revenue, EBITDA and PAT CAGR of 11%, 13% and 11%.
Additionally, the company’s net cash positive position, coupled with recovery in PAT-to-FCF conversion on the back of capacity expansion, boosts its growth prospects, Sharma said.
Voltamp Transformers shares have given multibagger returns as the stock has doubled investors’ money in 2024 so far. Voltamp Transformers stock price has surged over 102% year-to-date (YTD) and more than 185% in the past one year. The stock is up over 728% in three years.
At 12:10 pm, Voltamp Transformers share price was trading 0.85% higher at ₹13,228.85 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
