Add Voltas, target price Rs 1115: Centrum Broking

Centrum Broking has add call on Voltas with a target price of Rs 1115. The current market price of Voltas Ltd. is Rs 989.35. Time period given by analyst is year when Voltas Ltd. price can reach defined target.

Voltas Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 32714.57 Crore) operating in Consumer Durables sector.

Voltas Ltd. key Products/Revenue Segments include Electrical Goods, Contract Revenue, Sale of services, Other Operating Revenue and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2703.78 Crore, up 48.37 % from last quarter Total Income of Rs 1822.34 Crore and up .77 % from last year same quarter Total Income of Rs 2683.24 Crore. Company reported net profit after tax of Rs 211.56 Crore in latest quarter.

Investment Rationale
The brokerage expects 16%/29% sales/EPS CAGR over FY22-24E. Long term drivers of RAC under-penetration, FCF generation & VOLT-Bek JV scale–up remains. However, conundrum of recouping market share vs. preserving margins will restrict P/E re-rating in near term.

Promoter/FII Holdings
Promoters held 30.3 per cent stake in the company as of 31-Mar-2022, while FIIs owned 26.19 per cent, DIIs 27.84 per cent.