Voltamp Transformers Surges on Strong Q4 results

Voltamp reported a 70.1% growth in net profit to Rs 39.16 crore in FY 2007 (year ended 31 March 2007), from Rs 23.02 crore in FY 2006 (year ended 31 March 2006). Net sales rose 62.7% top Rs 404.89 crore (Rs 248.79 crore).

The current price of Rs 688 discounts its FY 2007 EPS of Rs 38.70 by a PE multiple of 17.7. Recently, the company’s board had approved capital expenditure of up to Rs 15 crore to increase installed capacity at the existing unit.

Voltamp Transformers manufactures transformers. It is a supplier to Reliance Industries, Jindal Steel, Siemens, ABB, Larsen & Toubro and Suzlon Energy. In late August 2006, Voltamp Transformers came out with a public issue comprising offer for sale by some its existing shareholders and there was no fresh issue of equity by the company. The issue was priced at Rs 345 per share, at the upper end of the Rs 295 – Rs 345 price band.