Buy Voltas; target of Rs 1400: Anand Rathi

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

Anand Rathi's research report on Voltas

Rising mercury levels can brighten the outlook for Voltas’ UCP category, impelling us to upgrade the stock to a Buy despite a slower pace of order inflows in its projects business and mounting losses in Voltas Beko JV. Hence, we lower revenue/net income 11%/13% over FY22-FY24.

Outlook

We upgrade the stock to a Buy based on a sum-of-parts valuation of Rs1,400 (earlier TP Rs1,367, 43x FY24e EPS of Rs32).

More Info on Trent

At 13:53 hrs Voltas was quoting at Rs 1,221.85, up Rs 11.45, or 0.95 percent.

It has touched an intraday high of Rs 1,224.45 and an intraday low of Rs 1,201.75.

It was trading with volumes of 16,517 shares, compared to its thirty day average of 66,348 shares, a decrease of -75.11 percent.

In the previous trading session, the share closed up 1.38 percent or Rs 16.50 at Rs 1,210.40.

The share touched its 52-week high Rs 1,356.90 and 52-week low Rs 918.00 on 19 October, 2021 and 19 April, 2021, respectively.

Currently, it is trading 9.95 percent below its 52-week high and 33.1 percent above its 52-week low.

Market capitalisation stands at Rs 40,429.15 crore.

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