Expect 30-40% return in Voltas: Aashish Tater

Expect 30-40 percent return in Voltas from current levels in next six to eight months, says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Voltas is one stock where we feel a lot of money now can be made, because we downgraded this stock on the similar grounds because we never liked the sector for almost two years. But now with all those worries getting over, we feel a lot of surprise would be there for companies like Voltas in the budget and the stock will be re-rated."
He further added, "What interested us was their international operation also. We expect a good order flow from Qatar and also from Saudi Arabia in the next quarter which will be a substantial addition to their current order book. Remember there was a fall of 9 percent order book for Q2 and then the company reported good order inflows and now the company will have an uptick of 18-20 percent year-on-year, the stock is trading at a mouth-watering level if I see on stand-alone front."
"If you see their domestic business, the domestic business has shown some revival and we feel with summers actually coming in the Voltas AC and other related business will do exceptionally well even on domestic front. So if someone has a perspective of next six to eight months and are looking for safe bets we feel there is very limited downside on this particular stock."
"With news flow from order flow coming in for next quarter, that is what our analyst feels there is a likely possibility of 40-50 percent expansion in terms of PE and the stock would again go and stabilize at least giving you 30-40 percent return from current levels in next six to eight months perspective. So a win-win situation from both the angles, even from technical perspective where again a W was formed around at Rs 102 odd mark and we feel there is a substantial upside from current levels." Disclosure: I have no personal holdings but it is safe to assume that above stock has been discussed with clients.