Bullish on 2 wealth creation ideas in mid-term: Siddharth Sedani, Anand Rathi

Betting on Voltamp Transformers and Kalpataru Power, says Siddharth Sedani, Anand Rathi, talking to ET Now.

Edited excerpts:


What would be the first stock that you would like to recommend?

First idea would be Voltamp Transformers with a target of Rs 1741. If you look at the numbers, sales were little higher which was in line with the expectations but the overall realisations rose above 20%. The company’s profitability has been really good, healthy order book. Overall, if you look at the company’s performance in terms of balance sheet, it has been really good. We expect around 24% CAGR growth between FY17 and FY19. Overall perspective, there is a good expectation from this company.

What else is on your list?

The second idea is Kalpataru Power with a target of Rs 484. If you look at the transmission side, the capex has been coming really well on the back of Power Grid. It is getting an order for Kalpataru Power. Apart from that, railway capex is also adding on in terms of order book. About 15-20% sales growth is expected despite the recent quarter was not that great. We can expect a 10.5% EBITDA margin in FY18. Kalpataru Power because of swelling in capex and better efficiency operational efficiency can be looked at with a medium term perspective with a target of Rs 484.