Target: ₹10,000
CMP: ₹7,927.05
We maintain BUY on Voltamp Transformers (VAMP) while cutting our TP by about 12 per cent to ₹10,000 (from ₹11,350 earlier), valuing the stock at 25x FY28E EPS. VAMP’s strong market position (15 per cent share in the industrial segment) stems from its design and manufacturing depth, along with a broad product portfolio that serves a diversified customer base – with private clients contributing about 85 per cent of revenue.
With its established track record, we believe the company is strategically placed to benefit from a multi-year growth cycle supported by private capex revival and the Centre’s PLI-driven manufacturing push. The current opportunities across solar energy, railway capex, EV charging infrastructure, green hydrogen and data centres further widen VAMP’s addressable market. While we expect a high double-digit revenue growth led by capacity expansion and a lean balance sheet, we trim our margin estimates due to rising industry supply from planned capacity additions by several players.
VAMP continues to log healthy order inflow, benefiting from its well-diversified client base. Going ahead, the management pointed to a strong enquiry pipeline ahead, led by healthy industrial demand as well as demand from power utilities for grid expansion and strengthening. Current order-book stands at ₹1,400 crore (0.7x TTM revenue).
Given the strong demand and order inflow, VAMP has been operating at its total current capacity of 14,000 MVA. It is investing ₹200 crore (funded via internal accruals) for adding 6,000-MVA capacity in Vadodara (for up to 220 kV range), which will lift its total installed capacity to 20,000 MVA. The plant is scheduled to come on stream by Q1FY27E and will ramp up capacity utilisation to 50-60 per cent by FY27E, and pick up pace thereafter.
Published on December 10, 2025
