Voltamp Transformers’ shares gained over 3% after Nuvama Institutional Equities initiated coverage on the company with a buy rating and a target price of ₹10,200 per share. The brokerage described Voltamp as one of India’s “gold-standard” transformer manufacturers, noting its strong presence across the transmission and distribution ecosystem, renewable energy, industrial applications and emerging segments such as data centres, electric vehicle infrastructure and semiconductors. Nuvama stated that the company is well positioned to capitalise on the ongoing power sector capex upcycle and the broader industrial recovery, supported by its disciplined execution framework and robust balance sheet.
The brokerage expects Voltamp’s earnings trajectory to reaccelerate after a relatively subdued FY25–26 period, driven by its planned capacity expansion from 14,000 MVA to 20,000 MVA by FY27. This growth will be led by the new Jarod facility in Vadodara, which is being funded entirely through internal accruals and is projected to reach 60% utilisation by FY27 before scaling to full capacity. Nuvama anticipates that this expansion, combined with sustained demand across core customer segments, will support revenue growth of around 18% and EPS expansion of 13–15% in FY27, even as margins normalise from elevated levels.
Voltamp’s business model, centred on the sub-220kV segment and shorter execution cycles, allows the company to avoid large tender-based projects and instead prioritise orders with favourable working capital dynamics. This approach has helped Voltamp consistently deliver best-in-class operating margins of 17–18%, return on equity of 18–20% and strong cash-flow conversion. The company’s premium realisation of approximately ₹1.3 million per MVA reinforces its brand strength, although Nuvama noted a marginal narrowing of this premium as competitors enhance their offerings.
Despite this, the brokerage believes Voltamp remains attractively valued at around 20 times its FY28 estimated earnings, compared with sector peers that trade at significantly higher multiples of 30–40 times. With an estimated revenue CAGR of 17% and PAT CAGR of 13% over FY26–28, along with a sustained RoE of approximately 19%, Nuvama views Voltamp as offering a compelling risk-reward proposition within India’s private-capex-driven investment universe.
