Add Voltas, target price Rs 1350: HDFC Securities

HDFC Securities has add call on Voltas with a target price of Rs 1350. The current market price of Voltas Ltd. is Rs 1297.1. Time period given by analyst is one 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 42603.06 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 30-09-2021, the company reported a Consolidated Total Income of Rs 1737.35 Crore, down -6.60 % from last quarter Total Income of Rs 1860.17 Crore and up 5.24 % from last year same quarter Total Income of Rs 1650.80 Crore. Company reported net profit after tax of Rs 123.18 Crore in latest quarter.

Investment Rationale
The brokerage expects consolidated net revenue to decline by 2% YoY. UCP segment to report -2% YoY growth (+40% in Q3FY21 and +34% in Q2FY22). It models -3% YoY growth in EMPS (+26% in Q2FY21 and -28% in Q2FY22).


Promoter/FII Holdings
Promoters held 30.3 per cent stake in the company as of 30-Sep-2021, while FIIs owned 22.31 per cent, DIIs 31.6 per cent.