Shares of this small-cap stock jumped approximately 10 percent in Monday’s trading session after the company announced financial results for Q3FY23-24, viz, for the quarter ended December 2023. In the past month, the company’s shares have gained nearly 20 percent for its stakeholders.
With a market capitalization of Rs 8,017.92 crores, the stocks of Voltamp Transformers Limited started their trading session on Monday at Rs 7,205 and closed at Rs 7,925.10, gaining around 10 percent compared to the previous close of Rs 7,216.40 apiece.
Such sharp stock price movements were observed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter ended December 2023.
Sequentially, the company’s basic business parameters, such as the operating revenues and after-tax profits, showed positive movements with the former moving up from Rs 381.38 crores during Q2FY23-24 to Rs 408.48 crores during Q3FY23-24, and the latter, keeping the timeframe the same, shifted up from Rs 68.44 crores to Rs 94.61 crores.
In addition, the abovementioned metrics, on an annual basis too, showed a jump in numbers with the operating revenues increasing from Rs 357.46 crores during Q3FY22-23 to Rs 408.48 crores during Q3FY23-24, and the after-tax profits, during the same period, rose from Rs 50.75 crores to Rs 94.61 crores representing an increase of around 86 percent.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of around 225 percent to its stakeholders, viz, if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3.25 lakhs.
Historically, the company, during FY22-23, has reported its return ratios, i.e., return on equity (RoE) as well as return on capital employed (RoCE), at decent numbers with the former reported at 18.05 percent and the latter at 23.31 percent.
Voltamp Transformers Limited is a company based in India that is engaged in the business of manufacturing electrical transformers. The company offers a wide range of products, some of which include cast resin transformers, oil-filled transformers, unitized sub-stations, Induction furnace transformers, etc.
Written by Amit Madnani
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