September 27, 2012 / 13:07 IST
Shares in Voltas fell as much as 3.5 percent after the company told analysts the air conditioner and cooling products maker was expecting more downside to its margins and revenue growth across its business segments.
Bank of America-Merrill Lynch cited Voltas management as expecting margins in its mechanical, electrical and public health (MEP) unit of around 5 percent in fiscal 2013, compared to expectations of 6 percent.
Voltas has also cut its margin guidance for its air conditioning and cooling unit to 7 percent from 8 percent due to rising costs and its focus on gaining market share, according to BoA-Merrill, which reiterated its 'underperform' rating.
Kotak Institutional Equities downgraded Voltas to 'reduce' from 'add', further adding "the valuations argument has lost its sheen."
Voltas shares were down 3.5 percent as of 11.23 a.m.
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