Buy Voltas, target price Rs 1148: Arihant Capital

Arihant Capital has buy call on Voltas with a target price of Rs 1148. The current market price of Voltas is Rs 839.05 .

Voltas Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 27905.16 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-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1832.74 Crore, down -34.42 % from last quarter Total Income of Rs 2794.75 Crore and up 5.49 % from last year same quarter Total Income of Rs 1737.35 Crore. Company has reported net profit after tax of Rs 22.87 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.

Investment Rationale
Voltas has a leadership position in the RAC segment, a strong brand presence, and a wider network, focus on the B2C segment, export duty removal on iron ore and industry growth will be the key drivers for the company. The softening of raw material costs will lead to margin benefits from Q4FY23 onwards. The Capex for compressors will reduce the imports and move towards localization going forward.

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.