Buy Voltas; target of Rs 730: Dolat Capital

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Dolat Capital's research report on Voltas

While Voltas saw Q1FY21 sales was down by 51% YoY to Rs13bn, EBIDTA at Rs668mn down 77% YoY with margins down 583bps to 5.1% with PAT at Rs818mn down 51% YoY, the AC performance posted a lower decline than peers with strong 15% margins. The impact on profitability was mainly due to slowdown in projects business along with ECL provisioning,  Unitary cooling segment managed to improve margins by 240 bps in Q1FY21 to 15.5% due to better mix with larger share of inverter ACs and lower ad costs; market share improved to 26.2% compared to 24.6% in Q4FY20. The projects segment remains slow in terms of execution and order intake due to limited liquidity and availability of labor concerns.

Outlook

Voltas continues to leverage its brand name, market share and distribution network and is aided by its product and regional mix. We maintain Buy with a TP of Rs730, valuing it at 32xFY22E.

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