Moneycontrol BureauCredit Suisse (CS) has maintained an outperform rating on Voltas and raised its target price to Rs 400. The brokerage house believes the company can deliver strong compounding growth in a high-growth AC market.The company will benefit from an expansion in the market, need, improved power supply and possibly stable prices, says the house. Voltas' results show that it can sustain itself in a market which is seeing competition from domestic players as well as Japanese and Korean companies.Voltas reported Rs 9.4 billion of inflows in the first quarter of FY17, including Rs 7.7 billion of overseas orders. "We believe the projects business can have a strong cyclical upside from here. Strong inflows for industry (incl. Voltas) can be an early indicator."Valuation seems lower in comparison to peers, but it is favourable, says the report. "While Voltas is trading at a valuation higher than its five-ten year average, valuation is favourable even when compared with consumer goods companies."
The industry— Bluestar, Voltas— sounded positive on projects' margins and inflows outlook.
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