Accumulate Voltas, target Rs 350: Prabhudas Lilladher

Prabhudas Lilladher maintains an accumulate rating on Voltas with a 12-month target price of Rs 350.

"In the room AC segment, last two months were the tale of two halves, while April saw very strong market growth, lower than expected pick up in northern market led to slightly subdued sales in May; however pricing continued to be stable," said the note.

Project business continues to see challenges in timely execution both in domestic and international markets. Voltas continues to focus on profitability and being selective in picking orders.

There is long term opportunity in Room AC which continues to be strong given the rising income levels, easy availability of finance and low penetration and improving power availability.

"We believe Voltas continues to be the best proxy to play growth in Room AC segment. We remain positive on Voltas over medium/long, given improving margin profile of fresh orders, strong consumer business franchisee and healthy balance sheet," said the brokerage note.