Buy Voltas, target price Rs 1100: JM Financial

JM Financial has buy call on Voltas with a target price of Rs 1100. The current market price of Voltas is Rs 850.7.

Voltas, incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 28191.38 Crore) operating in Consumer Durables sector.

Voltas key Products/Revenue Segments include Electrical Goods, Contract Revenue, Sale of services, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2036.27 Crore, up 11.11 % from last quarter Total Income of Rs 1832.74 Crore and up 11.74 % from last year same quarter Total Income of Rs 1822.34 Crore. Company has reported net profit after tax of Rs -77.87 Crore in latest quarter.

The company’s top management includes Mr.Noel N Tata, Mr.Zubin S Dubash, Mr.Arun Kumar Adhikari, Ms.Anjali Bansal, Mr.Bahram N Vakil, Mr.Hemant Bhargava, Mr.D Sarangi, Mr.V Deshpande, Mr.Pradeep Bakshi, Mr.Saurabh Agrawal. Company has S R B C & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 33 Crore shares outstanding.

Investment Rationale
The brokerage expects Voltas’ market share to stabilise in 21-22% range, as we expect competitive intensity to ease out during summer season. However, JM Financial maintains its stance as it believes margins have bottomed out and a cyclical recovery in EMP and better than expected summer season 2023 will drive positive surprise in profitability.

Promoter/FII Holdings
Promoters held 30.3 per cent stake in the company as of 31-Dec-2022, while FIIs owned 21.58 per cent, DIIs 30.99 per cent.