Moneycontrol
Feb 17, 2017 02:42 PM IST | Source: Moneycontrol.com

Buy Voltas; target of Rs 400: ICICI Direct

ICICI Direct is bullish on Voltas has recommended buy rating on the stock with a target price of Rs 400 in its research report dated February 16, 2017.

 
 
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ICICI Direct's research report on Voltas


Voltas’ Q3FY17 consolidated revenues declined 6% YoY to Rs 1200 crore due to fall in revenue of all three segments EMPS, EPS and UCP by 3%, 28% and 5% YoY, respectively. Fall in sales of the UCP division was mainly due to high base and negative impact of demonetisation in tier II and tier III cities.


Outlook


Under our SOTP based valuation, we value the UCP segment by ascribing PE multiple of 24x FY18 earnings. We ascribe a PE multiple of 5x FY18E earning to EMPS business and 6x FY18E earnings to EPS segment. We maintained our BUY recommendation with revised target price of Rs 400/share (based on 21x FY19E earnings).

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