Voltamp Transformers slips 3% amid large trade; should you buy the dips?

Voltamp Transformers shares declined 3.2 per cent, after 7.86 per cent equities changed hands through a block deal, according to data compiled by Bloomberg

Voltamp Transformers shares declined 3.2 per cent on Tuesday and logged an intra-day low at ₹7,521 per share on BSE amid large trades. At 9:29 AM, on BSE, Voltamp Transformers’ share price was trading 2.15 per cent lower at ₹7,606.95 per share and 0.06 million shares were traded. In comparison, the BSE Sensex was up 0.42 per cent at 81,128.51.

 

The market capitalisation of the company stood at ₹7,696.04 crore. The 52-week high of the stock was at ₹14,260.3 per share, and the 52-week low was at ₹5,900.  CATCH STOCK MARKET UPDATES TODAY LIVE

Voltamp Transformers block deal 

The selling pressure on the counter came after 7.86 per cent equities changed hands through a block deal, according to data compiled by Bloomberg. Details of the buyers and sellers are not known yet.

 

 

Reports suggested that promoter Kunjal Patel is likely to sell up to 7.88 lakh shares (7 per cent stake) in the company through block deals, with an offer size of $67 million and a floor price of ₹7,600 per share. 

 

As of the June quarter, Kunjal Patel held a 37.8 per cent stake in the company and was the only promoter, BSE shareholding data shows. 

 

Among the public shareholders, HDFC Small Cap Fund held 7 per cent stake, Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund 6.35 per cent, DSP Small Cap Fund 2.57 per cent, Axis Mutual Fund Trustee Limited A/C Axis Mutual Fund A/C Axis India Manufacturing Fund held 1.25 per cent, Mahindra Manulife Small Cap Fund held 1.17 per cent stake and UTI-Mid Cap Fund held 1.16 per cent stake.

 

Voltamp Transformers is in the business of design, manufacture, and supplies of transformers, having 70000 installations in the country and overseas. Voltamp has a strong presence across all Industry segments like power, steel, cement, oil & gas, chemical and petrochemical, data centres, green energy, to name a few.

Should you buy, sell or hold Voltamp Transformers shares? 

Motilal Oswal Wealth Management suggests buying Voltamp Transformers shares at lower levels. 

 

Kranthi Bathini, director-equity strategy, WealthMills Securities, suggests ‘holding’ the stock at current levels on the back of strong fundamentals and order book of the company. 

 

He added: The stock can get into the uptrend once it reaches above 8,000/8,500 range.