Voltas Eyes Q3 Recovery Amid Short-Term Headwinds; Anand Rathi Retains 'Buy'

Voltas' Q1 revenue fell 20% YoY to Rs 39.4 billion as UCP revenue fell 24.6% YoY to Rs 28.7 billion, EMP revenue was down 2.9% YoY to Rs 9.2 billion, and engineering product revenue fell 15.8% YoY to Rs 1.3 billion.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Hit by an erratic summer, Voltas Ltd.’s unitary cooling product fell 25% YoY in Q1, its market share down to 17.8% (June-end 19.3%). Under-absorption and higher promotions squeezed margins, while inventory was high.

Voltas Beko gained share but is still in investment mode, while Projects posted a stronger order book. Management expects Q2 weakness but sees recovery from Q3, with a longterm focus on market leadership, selective growth, and innovation.

We retain a Buy, with a 12-month target price of Rs 1,568 (earlier Rs 1,544).

Risks: Drop in its room AC market share could curb UCP margins. Steep rise in raw material prices and competition could hurt margins.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.