Buy Voltas, target Rs 795: Jefferies Group

Jefferies Group has a buy call on Voltas Ltd. with a target price of Rs 795. The current market price of Voltas Ltd. is Rs 549.2 Time period given by the brokerage is a year when Voltas Ltd. price can reach defined target.

Voltas Ltd., incorporated in the year 1954, is a Large Cap company with a market cap of Rs 18268.15 crore.

Investment rational by Jeffries
Voltas’ 4QFY18 EBITDA came 8% below expectations as cooling segment revenues (like-to-like for excise/GST impact) was up 7% YoY vs. expectations of 15% YoY (Exhibit 1). PAT came in-line with expectations given higher EBIT margins of the engineering segment and other income. Voltas remains a good play on the investment and consumption themes in India. We maintain Buy with a PT of Rs 795 as we believe earnings momentum will remain supportive.