This small-cap Transformer Stock, engaged in manufacturing transformer bushings, including OIP and RIP types, serving power, renewable, rail, steel, cement, and data center sectors, is in focus after the management aimed for strong guidance of 300-400 percent for the next five years.
With a market capitalization of Rs. 1,087.80 crores, the shares of Yash Highvoltage Limited were currently trading at Rs. 381 per equity share, down nearly 2.74 percent from its previous day’s close price of Rs. 391.75.
Guidance: Yash Highvoltage Limited is aiming for strong growth over the next five years. The company’s management expects the revenue to grow by 300 percent to 400 percent, or about 3 to 4 times the current level. They are targeting an average growth rate of around 30 percent per year.
The company expects a significant portion of its growth to begin after FY27, when its new manufacturing plant receives approvals and starts operations. It also anticipates improved profitability through cost reduction from backward integration and enhanced efficiency from the new plant.
The company’s core business is manufacturing transformer bushings, specifically OIP (Oil Impregnated Paper) and RIP (Resin Impregnated Paper) bushings, which are critical components used in power transformers.
The company serves a wide range of industries, including power stations, renewable energy, steel, cement, railways, data centers, and other general industries. For the data center segment, the company is already supplying a special range of bushings tailored to meet specific requirements.
The company has a strong order book that is sufficient to support its revenue targets for FY 2025–26, even with a 25–30 percent growth rate. Management has confirmed that the current orders are enough to cover the entire year’s invoicing.
The company is setting up a new greenfield manufacturing facility in Vadodara, expected to be operational by the second half of FY26. The total capex outlay is Rs. 90 crore, with the major portion to be completed by March 2026. Minor investments will follow for material handling and storage systems.
The new plant will significantly boost production capacity from the current 9,000–10,000 bushings per year (majority OIP) to around 15,000–16,000 bushings annually, with an equal share of OIP and RIP products after full ramp-up.
The company is currently operating at 50–60 percent capacity utilization. The new Vadodara facility will take around 1–2 years to reach full production after it becomes operational, as it will undergo necessary type testing and product approvals during the ramp-up phase.
Coming into financial highlights, Yash Highvoltage Limited’s revenue has increased from Rs. 60 crore in H2 FY24 to Rs. 93 crore in H2 FY25, which has grown by 55 percent. The net profit has also grown by 150 percent, from Rs. 6 crore in H2 FY24 to Rs. 15 crore in H2 FY25.
Yash Highvoltage Limited’s revenue and net profit have grown at a CAGR of 31.6 percent and 47.58 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 28.5 percent and 22.6 percent, respectively. Yash Highvoltage Limited has an earnings per share (EPS) of Rs. 7.50, and its debt-to-equity ratio is 0.15x.
Written By – Nikhil Naik
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