Buy Voltas; target of Rs 991: Geojit

Geojit is bullish on Voltas has recommended buy rating on the stock with a target price of Rs 991 in its research report dated August 30, 2023.

Broker Research

August 31, 2023 / 13:48 IST

Buy

26 Aug, 2025 12:21

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Geojit's research report on Voltas

Voltas is India’s leading air conditioning and engineering services company. In Q1FY24, it derived ~75% of its revenue from the unitary cooling products (UCP) segment and 33% from electro-mechanical projects and services (EMPS). Revenue surged 21.7% YoY to Rs. 3,335cr in Q1FY24, driven by growth in the UCP and EMPS segments. EBITDA increased, while margin shrank 90bps YoY to 5.6% due to higher operating expenses. Adjusted PAT grew 18.7% YoY to Rs. 129cr due to an increase in revenue and other income. Efficient working capital management, incentive schemes across sales channels, a growing network of exclusive brand outlets, and tie-ups with modern and retail channels are expected to drive growth in the long term. Softening of commodity prices and cost efficiency measures are expected to support margin in the future. Demand is expected to improve from Q3FY24 onwards on account of festive season.

Outlook

Hence, we upgraded our rating to BUY on the stock with a revised target price of Rs. 991 based on 42x FY25E adj. EPS.

For all recommendations report, click here