Voltamp Ltd. - Kotak

Voltamp numbers are in line with our expectations. The Transformer manufacturing sector has been going through a continued phase of margin pressure and subdued demand conditions. There has been no visible improvement in the industry scenario since our previous update.

Given this, we maintain our negative stance on the industry and maintain Reduce on the stock. The Voltamp stock is currently trading at 12.6x FY13 earnings. We have been negative on the transformer business and maintain our stance with a REDUCE rating and a reworked target price of Rs 450 vs Rs 519 (earlier).

Source : Equity Bulls

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