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Last Updated : Jun 21, 2019 03:01 PM IST | Source:

Hold Voltas; target of Rs 584: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Voltas with a target price of Rs 584 in its research report dated Jun 19, 2019.

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Prabhudas Lilladher's research report on Voltas

Voltas Analyst meet indicated positive growth momentum in UCP in 1Q but reinforced our cautious stance given long gestation of Voltas-Beko JV. RAC industry has started FY20 on a positive note given strong demand due to harsh summer and low base of 1QFY19. The management has maintained annual margin guidance of 11% in UCP. Voltas-Beko JV performance is in line with internal benchmarks, it is expected to remain in an investment phase over the next 3-4 years given expenses on distribution, branding and stiff competition in white goods market. We estimate the JV to report loss of ~Rs1.5bn/Rs1.2bn in FY20/21. MEP business is focusing on domestic projects in Rural Electrification and Urban Infra as return of NDA Govt is likely to retain continuity in policies.


We estimate 15.9% EPS CAGR over FY19-21 and value the stock at 28xFY21 earnings. Maintain Hold.

For all recommendations report, click here

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First Published on Jun 21, 2019 03:01 pm
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