Sell Voltas, target price Rs 725: Edelweiss

Edelweiss has sell call on Voltas Ltd. with a target price of Rs 725. The current market price of Voltas Ltd. is Rs 800.75.
Voltas Ltd., incorporated in the year 1954, is a Large Cap company (having a market cap of Rs 26505.52 Crore) operating in Consumer Durables sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 1587.55 Crore, up 24.93 % from last quarter Sales of Rs 1270.76 Crore and up 12.19 % from last year same quarter Sales of Rs 1415.02 Crore. Company reported net profit after tax of Rs 86.72 Crore in latest quarter.


Investment Rationale
The stock is looking extended on the daily timeframe with momentum indicator RSI forming negative divergence with price. The brokerage sees some pullback in the stock and it can test its 21-EMA on the downside.

Promoter/FII Holdings
Promoters held 30.3 per cent stake in the company as of Sept 30, 2020, while FIIs held 12.4 per cent, DIIs 39.2 per cent and public and others 18 per cent.