AC maker Voltas share price rose 2 percent intraday on August 18 as brokerages maintain "buy" call on the stock.
The company has posted net profit at Rs 102.86 crore in June 2020, down 30.05 percent from Rs 147.05 crore in June 2019. Its net sales were at Rs 1,259.85 crore in June 2020, down 50.34 percent from Rs 2,536.80 crore, YoY
Earnings before interest, tax, depreciation and amortisation (EBITDA) was at Rs 135.67 crore, down 49.84 percent from Rs 270.47 crore, YoY.
Here is what brokerages have to say the stock and the company:
ICICIdirect
Being a market leader in the cooling product segment, Voltas will recoup sales with recovery in demand. We like Voltas for its strong brand recall and healthy balance sheet, which will cushion the company from any adverse situations arising due to project business. We maintain our buy rating on the stock with a revised target price of Rs 725 per share ascribing PE multiple 8x, 8x and 36x to EMPS, EPS and UCP segment, respectively.
Citi
The broking house, too, has maintained its buy call while raising the target to Rs 720 from Rs 640 per share.
Citi has increased target PE multiple to 38x on the back of continued market share gains. The Q1 reflected company’s strong competitive position in the Indian AC industry, CNBC-TV18 reported.
CLSA
The research house downgraded the stock to "outperform" from buy while raised target to Rs 670 from Rs 560 per share.
The market share gains in UPC & traction in Voltbek JV are the key positives. The company’s performance was better than expected in a COVID-hindered Q1.
UPC business showed more than 200 bps market share and margin expansion, while Voltbek JV outlook promising and breakeven likely to be achieved ahead of the guided timeline. CLSA valued UPC business at 35x versus 32x earlier and Voltbek at 5x versus 3x earlier, reported CNBC-TV18.
Dolat Capital:
The broking house maintained "buy" with a target of Rs 730 per share.
As AC demand shifts to the next season, which is the summer of 2021, Voltas remains the pick for playing the AC penetration theme. Apart from its leadership and brand, it also has a strong debt-free balance sheet with cash of Rs19 billion.
Prabhudas Lilladher
Prabhudas Lilladher has kept 'accumulate' rating on the stock with a target of Rs 660 per share.
It continues to maintain a positive stance on the company, given its leadership position in high potential RAC segment, balance sheet comfort (Rs 15 billion net cash) and sustained order wins in MEP segment. It estimates 16.6 percent EPS CAGR over FY20-23.
At 1009 hours, Voltas was quoting at Rs 637.50, up Rs 8.80, or 1.40 percent on the BSE.
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