⚡️Proxy Play to Energy Sector
⚡️Voltamp Transformers Ltd: A small company engaged in the manufacturing of electrical transformers
Detailed Company Analysis🧵👇
⚡️Voltamp Transformers Ltd: A small company engaged in the manufacturing of electrical transformers
Detailed Company Analysis🧵👇
🔶Voltamp Transformers Ltd.
🔹The company is engaged in the production of different classes of Oil-filled Power and Distribution Transformers.
🔹The company is engaged in the production of different classes of Oil-filled Power and Distribution Transformers.
🔹Products:
🔸Oil Filled Transformers
🔸Cast Resin Transformers
🔸Unitised Sub-Station
🔸Induction Furnace Transformers
🔸Lighting Transformers
🔸Oil Filled Transformers
🔸Cast Resin Transformers
🔸Unitised Sub-Station
🔸Induction Furnace Transformers
🔸Lighting Transformers
🔸Global Presence:
🔹The company has successfully distributed its transformers in a variety of countries, including India, Nepal, Bhutan, Sri Lanka, the Middle East, Southeast Asia, and various African nations.
🔹Order Book (Sept, 2023):
🔸Total order book: ₹1,402 Cr.
🔹The company has successfully distributed its transformers in a variety of countries, including India, Nepal, Bhutan, Sri Lanka, the Middle East, Southeast Asia, and various African nations.
🔹Order Book (Sept, 2023):
🔸Total order book: ₹1,402 Cr.
🔶Manufacturing Facilities:
🔹The company's production facilities are situated in Makarpura and Savli, both located in Vadodara, Gujarat, with a combined installed capacity of 14,000 MVA and having Oil-filled transformers capacity up to 160 MVA and 220 kV.
🔹The company's production facilities are situated in Makarpura and Savli, both located in Vadodara, Gujarat, with a combined installed capacity of 14,000 MVA and having Oil-filled transformers capacity up to 160 MVA and 220 kV.
🔹Revenue Mix (FY23):
🔸Sale of Products: 98%
🔸Revenue from Services: 2%
🔸Sale of Products: 98%
🔸Revenue from Services: 2%
🔶Key Metrics:
🔹M Cap: ₹6593 Cr
🔹CMP: ₹6517
🔹P/E ratio: 26.8
🔹Price to Book Value: 5.64
🔹ROCE: 25.1%
🔹OPM: 17.7%
🔹3 Year Sales Growth: 17.3%
🔹M Cap: ₹6593 Cr
🔹CMP: ₹6517
🔹P/E ratio: 26.8
🔹Price to Book Value: 5.64
🔹ROCE: 25.1%
🔹OPM: 17.7%
🔹3 Year Sales Growth: 17.3%
🔶Q2FY24 Financial Highlights:
🔹Revenue from Operations at ₹381 Cr⬆️18.3%
QOQ and 20% YOY.
🔹Operating Profit at ₹24 Cr⬆️49% QOQ and 50%
YOY.
🔹PAT at ₹68 Cr⬆️33% QOQ and 48% YOY.
🔹Basic EPS at ₹67.65⬆️48% YOY.
🔹Revenue from Operations at ₹381 Cr⬆️18.3%
QOQ and 20% YOY.
🔹Operating Profit at ₹24 Cr⬆️49% QOQ and 50%
YOY.
🔹PAT at ₹68 Cr⬆️33% QOQ and 48% YOY.
🔹Basic EPS at ₹67.65⬆️48% YOY.
🔶Client Concentration:
🔹The company boasts a diverse customer base, serving over 1,000 clients spanning across different industries including power, oil refineries, textiles, chemicals, real estate, automotive, infrastructure, and steel, throughout the nation.
🔹The company boasts a diverse customer base, serving over 1,000 clients spanning across different industries including power, oil refineries, textiles, chemicals, real estate, automotive, infrastructure, and steel, throughout the nation.
🔹Over the past three years, approximately 95% of company's sales have been to private sector entities.
🔹In FY23, the company's top 10 customers accounted for approximately 26% of its total sales.
🔹In FY23, the company's top 10 customers accounted for approximately 26% of its total sales.
🔶Debt Free and Investments:
🔹The company is debt-free and has invested its surplus funds in diverse portfolios, including debt and Government Securities, bonds, debentures, tax-free bonds, among others.
🔹As of March 31, 2023, the total investments stood at ₹650 Cr.
🔹The company is debt-free and has invested its surplus funds in diverse portfolios, including debt and Government Securities, bonds, debentures, tax-free bonds, among others.
🔹As of March 31, 2023, the total investments stood at ₹650 Cr.
🔶Amalgamation:
🔹The merger of Kunjal Investments Private Limited (KIPL) into Voltamp Transformers Limited (VTL) was completed in the fiscal year 2022. The Stock Exchange has approved the listing of these shares.
🔹The merger of Kunjal Investments Private Limited (KIPL) into Voltamp Transformers Limited (VTL) was completed in the fiscal year 2022. The Stock Exchange has approved the listing of these shares.
🔶Technical Collaborations:
🔹The company formerly collaborated with M/s HTT of Hann Munden, Germany, to manufacture advanced cast resin (dry type) transformers. M/s HTT is widely recognized for their excellence in cast resin transformer manufacturing.
🔹The company formerly collaborated with M/s HTT of Hann Munden, Germany, to manufacture advanced cast resin (dry type) transformers. M/s HTT is widely recognized for their excellence in cast resin transformer manufacturing.
🔹Furthermore, the company has also entered into a technical licensing agreement with PROCOM in Germany, enabling them to access Aluminium Foil Winding Technology.
🔶Strengths:
🔹The company's diverse industrial clientele ensures independence from any particular industry segment or region for order bookings.
🔹The company's diverse industrial clientele ensures independence from any particular industry segment or region for order bookings.
🔶Disturbances in Savli Plant Operations
🔹In the third quarter of FY23, the workforce at the Savli factory did not perform their duties due to wage revision and associated demands.
🔹The wage revision settlement was successfully reached in March 2023.
🔹In the third quarter of FY23, the workforce at the Savli factory did not perform their duties due to wage revision and associated demands.
🔹The wage revision settlement was successfully reached in March 2023.
🔹The management adopted a cautious approach and refrained from accepting new orders between October 2022 and January 2023, which led to a reduced order book as of April 1, 2023, for the Savli factories.
🔶Industry Overview:
🔹The power transformer market is poised to grow at a 5% CAGR from 2023 to 2033, with an overall valuation expected to reach US$ 24.1 billion in 2023.
🔹The power transformer market is poised to grow at a 5% CAGR from 2023 to 2033, with an overall valuation expected to reach US$ 24.1 billion in 2023.
🔶Risks and Concerns:
🔹Monitoring the geopolitical landscape and the volatility of commodity prices is a crucial factor when forecasting upcoming business opportunities.
🔹The unpredictability in key material prices, impacting fixed-price transformer orders, is a major concern
🔹Monitoring the geopolitical landscape and the volatility of commodity prices is a crucial factor when forecasting upcoming business opportunities.
🔹The unpredictability in key material prices, impacting fixed-price transformer orders, is a major concern
🔹Additionally, exchange rate fluctuations between the rupee and the US dollar affect profit margins, given the imported origin of essential raw materials like copper, transformer oil, and special steels for lamination.
🔶Shareholding Pattern:
🔹Promoters: 38%
🔹FIIs: 22.34%
🔹DIIs: 28.48%
🔹Retailers: 11.18%
🔹Promoters: 38%
🔹FIIs: 22.34%
🔹DIIs: 28.48%
🔹Retailers: 11.18%
⚡️Disclaimer: The above data should not be considered as a Buy or Sell recommendation. The analysis has been done for educational and learning purpose only.
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