Voltamp Transformers stock price has gone up 180% in one year; why it is this week's top stock
The manufacturer and supplier of electrical transformers enjoys a dominant position, with its products catering to various industries, including data centres, oil and gas, metals, minerals, infrastructure and green energy. Its product mix includes power, distribution and dry transformers. The company reported a strong operating performance in the June quarter, led by a healthy demand momentum. Its revenue and PAT grew by 32.9% and 56.5% year-on-year, respectively. While improved volumes supported the top line, higher other income and lower effective tax rate aided the net profit.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} The company benefits from the government’s focus on the infrastructure sector (railway capex, energy security, transition to renewable energy), and strong prospects of the country’s power sector. Growing population, robust GDP growth outlook, increasing electrification and rise in per capita electricity use are some of the factors aiding the power sector’s growth.
The need to upgrade/replace old power infrastructure with a change in electricity mix (increasing renewable energy) and emergence of new demand drivers (EVs, data centres, solar power) are providing additional growth impetus to the power sector. A Motilal Oswal report estimates India’s power demand to grow at 7% CAGR over the next decade, and anticipates EVs and data centres to drive one-third of the power demand growth by 2035.
The management expects domestic demand momentum to be robust over the next five years, supported by industrial capacity expansion by the private sector in various industries (steel, cement, petrochemicals, metals), PLI scheme benefits, traction in green energy projects by private sector players (to improve ESG footprint) and China plus one strategy.
Legal
Digital Personal Data Protection Act 2023
By - Gaurav Khera, Partner, Risk Advisory: Deloitte
Marketing
Modern Marketing Masterclass by Seth Godin
By - Seth Godin, Best-selling author
Finance
A2Z Of Finance: Finance Beginner Course
By - elearnmarkets, Financial Education by StockEdge
Legal
Data Privacy with General Data Protection Regulation (GDPR)
By - Arun S. Prabhu, Partner (Head- Technology and Telecommunications): Cyril Amarchand Mangaldas
Legal
Labour Laws
By - Ankita Ray, Partner: Cyril Amarchand Mangaldas
Finance
Financial Reporting and Analytics
By - Dr. C.P. Gupta, Professor: Department of Finance and Business Economics, University of Delhi
Artificial Intelligence(AI)
Mastering C++ Fundamentals with Generative AI: A Hands-On
By - Metla Sudha Sekhar, Developer and Lead Instructor
Office Productivity
Mastering Microsoft Office: Word, Excel, PowerPoint, and 365
By - Metla Sudha Sekhar, Developer and Lead Instructor
Web Development
A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
AI and Analytics based Business Strategy
By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI
Artificial Intelligence(AI)
AI for Everyone: Understanding and Applying the Basics on Artificial Intelligence
By - Ritesh Vajariya, Generative AI Expert
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri
Finance
Financial Literacy i.e Lets Crack the Billionaire Code
By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, Developer and Lead Instructor
Marketing
Digital Marketing Masterclass by Neil Patel
By - Neil Patel, Co-Founder and Author at Neil Patel Digital Digital Marketing Guru
Finance
Budget Analysis, Forecasting & Control
By - Mandar V. Joshi, Partner and Head of Technology Implementation, Management Consulting: KPMG
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By - Metla Sudha Sekhar, Developer and Lead Instructor
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, Developer and Lead Instructor
Finance
A2Z Of Money
By - elearnmarkets, Financial Education by StockEdge
Strategy
ESG and Business Sustainability Strategy
By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By - Metla Sudha Sekhar, Developer and Lead Instructor
The company has an exhaustive clientele both in the PSU and private sectors, and a significant proportion of its business is generated through repeat orders. Such client loyalty provides strong revenue visibility and business stability. It is also expanding its capacity by 6,000 MVA (megavolt amperes) to cater to the rising demand for electricity (and transformers) and entailing a capital expenditure of up to Rs.200 crore (funded through internal accruals).
It has a strong balance sheet with strong operating cash flows. Moreover, prudent management of working capital has helped it to remain debt-free for over a decade. A recent IDBI Capital report expects the operating cash flows to grow at 20% CAGR over 2023-24 and 2026-27. The report lists large addressable opportunities in data centres, strong order backlog in power and distribution transformers, higher service income, prudent capital allocation, comfortable capital structure and better sales mix and cost controls as key positives. The stock has outperformed the market benchmark in the past year, with 180.7% returns compared to BSE Sensex with 28% returns.
Selection methodology: We pick the stock that has shown the maximum increase in ‘consensus analyst rating’ during the past three months. The consensus rating is arrived at by averaging all analyst recommendations after attributing weights to each of them (1 for strong buy, 2 for buy, 3 for hold, 4 for sell, 5 for strong sell). An improvement in consensus analyst rating indicates that the analysts are getting bullish on the stock. Only stocks with more than five analysts covering them are considered. You can see similar consensus analyst rating changes during the past week in ETW 50 table.
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
