Here's why Voltamp Transformers shares rose 5% in trade on November 28

Voltamp Transformers shares have rebounded nearly 40 per cent from its 52-week low of ₹6,051 per share, touched earlier this year on March 3 on the NSE

Don't want to miss the best from Business Standard?

Voltamp Transformers Share Price Today: Shares of heavy electrical equipment maker Voltamp Transformers witnessed strong buying interest on Friday, November 28, after the company announced that it had received a Letter of Intent (LoI) from Gujarat Energy Transmission Corporation Limited (GETCL). Following the news, the company’s stock price rose 4.83 per cent to ₹8,461.50 during intraday trade on Friday.

 

The stock has rebounded nearly 40 per cent from its 52-week low of ₹6,051 per share, touched earlier this year on March 3 on the NSE. However, Voltamp Transformers remains more than 26 per cent below its 52-week high of ₹11,500, recorded last year on December 9 on the BSE.

 

That said, the counter continued to attract buying interest on Friday. At 09:50 AM, Voltamp Transformers shares were trading at ₹8,442.50, up 4.60 per cent from the previous close of ₹8,071.50 on the NSE. The benchmark Nifty 50 was up by merely 23 points, or 0.09 per cent, at 26,238 levels.

 

Trading volumes, however, remained subdued, as a combined total of 0.02 million equity shares worth approximately ₹16.83 crore changed hands on the NSE and BSE by midday. The company’s market capitalisation stood at ₹12,040 crore on the NSE.

 

According to BSE data, Voltamp Transformers has a trailing twelve-month earnings per share (EPS) of 324.82, a cash EPS (CEPS) of 338.59, a price-to-earnings (PE) ratio of 25.89, a return on equity (ROE) of 23.18, and a price-to-book ratio of 6.

 

Voltamp Transformers bags order from GETCL

 

The northward movement in the stock price came after the heavy electrical equipment maker informed the exchanges that it has received a Letter of Intent from GETCL worth approximately ₹85.05 crore, inclusive of GST, for the supply of various ratings of power transformers.

 

According to the regulatory filing submitted by the company, the contract includes the design, manufacture, testing, and supply of the transformers as per the tender specifications. The order, the company said, must be executed within six months.