New Delhi. Voltamp Transformers stock, which has given 560 percent multibagger returns to investors in five years, is ready to take off once again. Nuvama Institutional Equity has recently started coverage of this stock, which has fallen by about 24 percent in the last one year. The brokerage has advised to invest money in this stock and expressed hope that it can rise by 29 percent from its current price. During Covid-19, Voltamp Transformer shares once fell to Rs 800. After the Corona period, it again gained momentum and even crossed the level of Rs 11000. In the last three years, this stock has given almost 10 times returns to investors.
On Wednesday, this stock is trading in a limited range between Rs 7,835 and Rs 8,005. The market capitalization of the company has now slipped below Rs 8,000 crore. However, this decline is believed to be mere trading volatility, as the stock has so far gained 38% from its 52-week low of Rs 5,900 in April 2025. Even though the stock is down about 31% from its 52-week high of Rs 11,539 in December 2024, experts say that the correction is only a result of profit-booking.
Voltamp Transformers Share Target Price
While advising to buy this multibagger share, Nuvama has fixed its target price at ₹ 10,200. The brokerage says Voltamp’s EPS (earnings per share) could grow by 13–15% by FY27E. The biggest reason for this is the increase in the manufacturing capacity of the company. Currently the company is operating at a capacity of 14,000MVA with more than 100% capacity utilization. Now this capacity is being increased to 20,000MVA, which is expected to increase the annual revenue by 18%.
Nuvama estimates that the company’s operating income may grow at 14% CAGR, revenue at 17% CAGR and EPS at 13% CAGR during FY26E–28E. However, due to increasing competition and pricing pressure, operating margin may come down to around 17% by FY28E. The company’s operating profit margin has reached 17–18%, ROE 18–20% and EPS CAGR has reached 50% in the last five years. The company collects a premium of around Rs 1.3 lakh on every MVA, while the industry average is around Rs 1 lakh.
However, as competition increases, this premium may gradually reduce. The company is investing about Rs 200 crore in its Jarod plant in Vadodara, which is funded entirely from internal cash. Brokerage firm PL Capital has also maintained its ‘BUY’ rating on this stock and has fixed its target price at Rs 10,318, which was earlier Rs 10,285.
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