Voltas drops 9% on Q2 numbers, demand concerns
“The ban of high denomination currency notes is likely to exert pressure on near-term unitary cooling products (UCP) demand,” foreign brokerage CLSA said in a note.
By ETMarkets.com |
BCCL
NEW DELHI: Shares of Voltas slumped over 9 per cent in Thursday’s trade after the company reported a modest growth in September quarter net profit amid concerns over weak demand in the light of recent demonetisation move by the government.
The stock slumped 9.29 per cent to hit a low of Rs 297.75 on BSE.
The company on Wednesday reported 7.21 per cent increase in consolidated net profit at Rs 72.11 crore for the quarter ended on September 30, 2016. It had posted a net profit of Rs 67.26 crore in the July-September quarter a year ago.
“The ban of high denomination currency notes is likely to exert pressure on near-term unitary cooling products (UCP) demand,” foreign brokerage CLSA said in a note.
The brokerage has a sell rating on the stock with a revised target price of Rs 305 compared with Rs 345 earlier, saying that lack of clarity on transition impact of GST rollout will create an uncertain environment for the company.
The stock slumped 9.29 per cent to hit a low of Rs 297.75 on BSE.
The company on Wednesday reported 7.21 per cent increase in consolidated net profit at Rs 72.11 crore for the quarter ended on September 30, 2016. It had posted a net profit of Rs 67.26 crore in the July-September quarter a year ago.
“The ban of high denomination currency notes is likely to exert pressure on near-term unitary cooling products (UCP) demand,” foreign brokerage CLSA said in a note.
The brokerage has a sell rating on the stock with a revised target price of Rs 305 compared with Rs 345 earlier, saying that lack of clarity on transition impact of GST rollout will create an uncertain environment for the company.
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