What explains the sudden rally in the stock of Voltamp Transformers?

Voltamp Transformers recently touched a new high of Rs3,283 and gained 14% in 4 days. IN fact, over last 2 months, the stock is up 77%. This was on the back of stellar March quarter results wherein sales grew by 36.3% to Rs387 crore and PAT grew 67% to Rs51.9 crore in the March 2022 quarter. In that period, the EBITDA margins improved by a full 561 bps to 17.2% in Q4FY21. A healthy dividend of Rs35 per share also acted as a support.

The company is already debt free and well placed for an industrial upturn. The stock has seen a lot of aggressive buying from HDFC Mutual Fund, which increased its stake in Voltamp Transformers from 4.91% to 5.25%.