Voltamp Transformers Limited

Industrials — Electrical Equipment & Parts · NSE

₹10,587.00+₹193.00 (+1.86%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Voltamp Transformers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Voltamp Transformers Limited manufactures and sells electrical transformers in India. It offers oil filled transformers, cast resin transformers, unitized sub-stations, induction furnace transformers, switchgears, compact sub stations, and ring main units.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees440

Annual revenue₹2,146 Cr

How does it make money?

Turns over ₹2,146 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 440 employees supports ₹4.88 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.88 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 17.0% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 15.8% and earnings to grow about 20.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.8%

Est. earnings growth+20.1%

Analysts7

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +56% while net margin moved -2% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+56%

Margin effect-2%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 33.8x already prices in growth
• P/E is close to its own historical median of 31.3x
✗ P/B of 5.98x is a steep premium to book

Quality vs. Valuation

Company Quality

83/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.8x

3Y Median

31.3x

40 monthly readings · mean 33.8x · range 20.7x–68.3x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 31.3x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 62% below the peer median of 88.8x.

vs. its own history

Fair

31.3x median over 40 months · +8%

vs. sector peers

Cheap

88.8x median of 3 peers · -62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

26.8x

PEG

2.23

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 22.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.03x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 123% against revenue up 56% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 62% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹15 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 16.0% CAGR
Latest reported year was 28.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹10,711 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.8x

Fair

Fairly valued against the generic band

P/B Ratio

5.98x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹313.4

Profitable

Profitable on a per-share basis

ROE

17.0%

Strong

Strong capital efficiency

ROCE

22.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.03x

Low

Conservative leverage

Revenue Growth (YoY)

28.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.94%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

26.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

14.1%

Average

Average margins

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

4.16

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10579.3 / 10624.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,376 Cr	₹1,609 Cr	₹1,925 Cr	₹2,146 Cr	+16.0%
EBITDA	₹251 Cr	₹347 Cr	₹406 Cr	₹396 Cr	+16.4%
EBITDA Margin	18.3%	21.6%	21.1%	18.5%	—
PAT (Net Profit)	₹200 Cr	₹307 Cr	₹325 Cr	₹305 Cr	+15.2%
EPS	₹197.63	₹303.8	₹321.65	₹301.85	+15.2%
ROE	18.1%	22.7%	20.5%	17.0%	—
ROCE	23.3%	29.1%	27.1%	22.3%	—
Total Debt	—	₹3 Cr	₹2 Cr	₹1 Cr	—
Free Cash Flow	₹160 Cr	₹197 Cr	₹159 Cr	₹15 Cr	-54.9%

🟢 Revenue has grown at 16.0% a year over 3 years.

🟢 EBITDA has grown at 16.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 18.5% over 3 years.

🟢 PAT (Net Profit) has grown at 15.2% a year over 3 years.

🟢 EPS has grown at 15.2% a year over 3 years.

🔴 ROE has fallen from 18.1% to 17.0% over 3 years (-1.0 pts).

🟡 ROCE has held roughly flat at 22.3% over 3 years.

🔴 Free Cash Flow has shrunk at 54.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,018 Cr

Total Liabilities

₹226 Cr

Cash & Equivalents

₹73 Cr

Operating Cash Flow

₹140 Cr

Capex

-₹125 Cr

Shareholding (proxy)

Institutional Holding

47.2%

Insider Holding

30.0%

Corporate Actions

Dividend Rate

₹100

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

5 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹10,982.63

+3.7% vs CMP

Target Range

₹10,398 – ₹11,900

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

Better Transformer Stock: Voltamp Transformers vs Transformers & Rectifiers India

Equitymaster, 18 Oct

Voltamp Transformers posts ₹912M profit in Q1FY27, updates capex plan

scanx.trade, 18 Oct

Voltamp Transformers Share Price Rise and Valuation View

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

VOLTAMP Forecast — Price Target — Prediction for 2027

TradingView, 27 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Voltamp Transformers (NSEI:VOLTAMP) Stock Price

Simply Wall Street, 12 Aug

Voltamp Standalone Q1 Net Profit Rises To ₹91.2 Crore Vs ₹79.5 Crore YoY

Sahi, 31 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑