For companies in capital goods space there is always lumpiness in order flow and execution which impacts the quarterly numbers, more so of small companies who have high portfolio concentration in a single product. So we won’t see a smooth linear increase in yoy numbers. From that perspective inter-quarter variations in PAT and margins shouldn’t be worrying unless there is dramatic drop or some negative commentary from the management.
Overall outlook for the transformer sector in India is still positive and Voltamp management (a very conservative one) has maintained that. They have announced CAPEX for capacity expansion and knowing their disciplined execution they wont do that just to please the market.
I believe stock has run a lot, currently quoting 2x its historical valuations so these minor disappointments in numbers are always expected to cause a decent 20-30% corrections in stock prices.
Disc- Invested and adding at corrections
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