Buy Voltas, target Rs 450: UBS

UBS has Buy call on Voltas Ltd. with a target price of Rs 450.0. The current market price of Voltas Ltd. is 381.4. Time period given by analyst is year, when Voltas Ltd. price can reach defined target. UBS maintains a buy recommendation on Voltas and is one of the top picks in the midcap space. The global investment bank likes Voltas due to the solid balance sheet; high return ratios; and nearly net cash profile. The company looks set to maintain its market leadership, aided by new product launches. Premium valuation justified. The company has recently forayed into the air coolers space which is a highly underpenetrated segment, and margin accretive. "We expect the company to maintain its market leadership, aided by new product launches. The cyclical businesses are also showing signs of stabilizing and a recovery, which can also be a positive surprise for its earnings, and thus, the share price," said the UBS report.