Mehabe score: 3 G Factor: 2 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 6.
Description
Voltamp Transformers Limited is mainly into manufacturing of various types of Oil filled Power & Distribution Transformers.Site:VOLTAMP
Market Cap:
Rs 1,442 cr
Price:
1424.0
Trading pe:
15.6x
Book-value:
763/share
Div yield:
1.76 %
Earning yield:
8.32%
Face-value:
10.0/share
52week high:
1567.50
52week low:
960.00
Technical Analysis
Stock trades at 1424.0, above its 50dma 1245.87. It also trades above its 200dma 1159.68. The stock remains bullish on techicals
The 52 week high is at 1567.50 and the 52week low is at 960.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 25.27%
Weakness
– The company has delivered a poor sales growth of 10.68% over past five years.
– has a low return on equity of 12.20% for last 3 years.
-Earnings include an other income of Rs.49.82 Cr.
Competition
– The industry trades at a mean P/E of 27.1x. A B B trades at the industry’s max P/E of 161.46x. VOLTAMP trades at a P/E of 15.6x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. VOLTAMP has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 4.4%. The max 1- month return was given by A B B: a return of 21.49 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 284.0 cr compared to Rs 225.0 cr for period ended Mar 2020, a rise of 26.2%
Operating Profits reported at Rs 33.0 cr for period ended Mar 2021 vis-vis 38.0 for period ended Mar 2020 .
Operating Margins contracted -526.9 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 30.7 compared to Rs 31.69 for previous quarter ended Dec 2020 and Rs 11.41 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 692.0 cr for period ended Mar 2021 vis-vis sales of Rs 859.0 cr for the period ended Mar 2020, a fall of 24.1%. The 3 year sales cagr stood at 2.7%.
Operating margins shrank to 11.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, contraction of 200.0 bps.
Net Profit reported at Rs 112.0 cr for period ended Mar 2021 vis-vis sales of Rs 89.0 cr for the period ended Mar 2020, rising 20.5%.
Company recorded a healthy Net Profit CAGR of 15.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 12.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 25% on a 1 Year basis vis-vis a return of 14% over the last 3 Years. – The compounded sales growth on a TTM bassis is -29% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is -16% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 15.37% vis-vis 15.98% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 13.06% vis-vis 12.43% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 25.27% – The company has delivered a poor sales growth of 10.68% over past five years.
– has a low return on equity of 12.20% for last 3 years.
-Earnings include an other income of Rs.49.82 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 1245.87 and is trading at 1424.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
