See 30-40% upside in Voltas: Saurabh Mukherjea

See 30-40% upside in Voltas, says Saurabh Mukherjea, Head of Equities, Ambit Capital.

Mukherjea told CNBC-TV18, "From a structural basis I think Voltas remains one of our favorite plays. It’s a mixture of a high class consumer discretionary spend, so the air conditioning business seems to go from the strength to strength and on the construction side and the mechanical electrical plumbing side, they are a class apart from anybody else in our country."
He further added, "There is an obvious cyclical element to the construction side of Voltas’ business, but the strength of the franchise, the quality of the balance sheet, there is no debt on the balance sheet, conservative management, all of that suggests to me that over a 2-3 year period you should see a good 30-40% upside. That being said if we do go into policy paralysis mode I would be circumspect about near-term upside in Voltas."