Result Update - Voltamp Ltd - BUY - TP Rs.1320 - Kotak

Voltamp reported good set of numbers for the quarter. Revenue and EBITDA topped our estimates. Despite sharply lower other income, profits exceeded our estimates.

Key Highlights

- From our discussion with the management, it sounded optimistic on the current business scenario and is witnessing higher number of orders in the market than in earlier quarters, which is a positive.

- The company is fairly confident of doing Rs 7.0 bn plus revenue in FY19.

Valuation and Outlook

- Voltamp is currently trading at 13x and 11x FY19E and FY20E earnings respectively. Valuations are attractive compared to peers and more so considering that management remains prudent and has been able to preserve quality of balance sheet even through years of industry distress. Voltamp remains one of the best stocks to play future upturn in industrial demand. Maintain BUY with unchanged target price of Rs 1320.

Shares of VOLTAMP TRANSFORMERS LTD. was last trading in BSE at Rs.1094.85 as compared to the previous close of Rs. 1104.15. The total number of shares traded during the day was 1020 in over 131 trades.

The stock hit an intraday high of Rs. 1116.95 and intraday low of 1089.15. The net turnover during the day was Rs. 1123868.

Source : Equity Bulls

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