ICICI Securities initiates coverage on India's Voltamp Transformers with 'BUY'

Voltamp Transformers

14/03/2023 08:53

** ICICI Securities initiates coverage on electrical transformers
manufacturer Voltamp Transformers  VOTL.NS  with a BUY rating; states co's order
book would improve with capex revival and greater distribution capex 
    ** VOTL shares up as much as 2.1% on Tuesday to 2,727 rupees
    ** Order inflow for the nine months ended December 31 grew 18% Y/Y, which
helped co to report highest-ever order backlog of 9 billion rupees ($109.23
million) - Analysts at ICICI Securities 
    ** The brokerage expects momentum to continue with strong opportunities
coming up in manufacturing, industrial capex on capacity expansion and energy
transition
    ** Adds co managed cash flows better than peers, commanding healthy return
ratios with net cash of 6.4 billion rupees as of end-Dec 2022
    ** Co has diversified clientele, including private players and select PSUs,
with the former accounting for a majority of its revenue; top-10 client
contribution to FY22 revenue was ~22%
    ** VOTL shares down 2.9% YTD 


($1 = 82.3980 Indian rupees)

 (Reporting by Yagnoseni Das in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com; +91 6001289066;))