Analysts' picks- Voltas

CMP: Rs 52.45

Target price: 57

Kotak Securities��� private client research has maintained its ���accumulate��� rating on Voltas while trimming the price target to Rs 57 from Rs 70.

���We are downgrading our earnings and target price for Voltas in view of deteriorating fundamentals in its major user industries,��� the retail broking firm said, referring to slowdown in Dubai property market and declining investments of South India-based textile makers.

���Close to 81% of the order backlog of Rs 5,600 crore is from the Middle East (realty) market. Out of this, the order book from Dubai constituted just Rs 105 crore. Voltas indicated that they had anticipated a sharp slowdown in the Dubai market since a year earlier and had been consciously reducing exposure in the Dubai property market,��� it said. The slackening of the consumer durables business, including water coolers window and split ACs, is also expected to weigh down Voltas��� revenue growth, Kotak said.