Buy Voltas; target of Rs 650: Dolat Capital

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Dolat Capital's research report on Voltas

Voltas had a stellar Q4, with main highlight being the 20% growth in the unitary cooling (compared to de-growth in teens for competitors) along with margin expansion and market share gains. Projects business was a laggard due to slower execution as well as provisioning in some projects. FY21 will be a challenging year with the peak summer sales lost and surplus inventory which will have to be liquidated first. For ACs, being high ticket discretionary items, we expect demand to shift to the next AC season and accordingly trim our FY21E and FY22E estimates as outlined in Exhibit 2.

Outlook

As AC demand shifts next year, Voltas remains the pick given its strengths- brand, market share, distribution, range and balance sheet. We maintain Buy with a TP of Rs650, valuing it at 30XFY22E.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More