ICICI Sec initiates coverage on Voltas with reduce rating
ICICI Securities has initiated coverage on Voltas with a reduce rating. According to the brokerage the stock is likely to fall to Rs 81 on the back of challenging business climate, sluggish order awards and intense competition.
April 23, 2013 / 15:43 IST
Moneycontrol Bureau
ICICI Securities has initiated coverage on Voltas with a reduce rating. According to the brokerage, the stock is likely to fall to Rs 81 per share on the back of challenging business climate, sluggish order awards and intense competition. ICICI Securities feels that the company's electro-mechanical projects (EMP) is likely to remain weak while unitary cooling products (UCP) business is relatively better placed. “While Voltas has gained number 1 position in the room air-conditioner (AC) segment and pricing has seen increase, competitive intensity and impact of further macro-slowdown could be key risks to volumes and margins going forward,” the report says. It expects Voltas to post revenue and earnings growth at a CAGR of 7.4 percent and (1.3) percent respectively over FY12-FY15E, primarily due to muted performance of the EMP division.At 15:15 hrs Voltas was quoting at Rs 84.15, up Rs 1.25, or 1.51 percent on the BSE. Nasrin SultanaNasrin.sultana@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
