806.60 37.50 (4.88%)
The 29 reports from 9 analysts offering long term price targets for Voltas Ltd. have an average target of 738.44. The consensus estimate represents a downside of -8.45% from the last price of 806.60.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-11-18||Voltas Ltd. +||Geojit BNP Paribas||770.30||848.00||770.30 (4.71%)||5.13||Hold|
|2020-11-10||Voltas Ltd. +||Nirmal Bang Institutional||760.70||835.00||760.70 (6.03%)||3.52||Accumulate|
Nirmal Bang Institutional
UCP outperforms; EMPS margin and OCF stay weak Voltas posted 2QFY21 consolidated sales of Rs16.1bn, up 13% YoY, 32%/29% above our/consensus estimate. UCP sales grew 9% YoY to Rs5.7bn (36% of total sales), led by healthy volume growth of 11%/20%/28% YoY in Room AC/Commercial Refrigeration/Air Coolers. Voltas maintained its leadership position in Room ACs with 26.4% YTD-FY21 market share. EMPS revenue grew 15% YoY to Rs9.3bn (58% of total sales), largely driven by international operations while Engineering Products revenue grew 16% YoY to Rs933mn (6% of total sales). Gross margin was down 240bps YoY at 26%. EBITDA declined by 8% YoY to...
|2020-11-09||Voltas Ltd. +||Motilal Oswal||790.60||775.00||790.60 (2.02%)||Target met||Neutral|
Voltas' (VOLT) 2QFY21 earnings were 37% better than our expectation, largely led by better-than-expected execution in the EMP segment and higher margins in the UCP segment. VOLT has sustained its no.1 position in Room Air conditioners (RAC) and further improved its market share to 26.8% in Aug'20 (YTD 26.4%). Inventory level with the company stood at ~110 days, which is higher than normal, but should normalize by Dec'20-Jan'21. On the recent restructuring of business announcement, management was clear that the exercise is not aimed at selling off/demerger of the projects business....
|2020-08-24||Voltas Ltd. +||Edelweiss||661.65||770.00||661.65 (21.91%)||Target met||Buy|
|2020-08-18||Voltas Ltd. +||HDFC Securities||644.75||653.00||644.75 (25.10%)||Target met||Buy|
Alkyl Amines: Our BUY recommendation on AACL with a TP of INR 3,355 is premised on (1) robust demand from pharmaceutical and agrochemical customers that form ~70% of AACL's revenue mix, (2) rising domestic market share in Methyl Amines, (3) impending capacity expansion for (high-margin) Acetonitrile, and (4) production linked incentive scheme that provides the right tailwinds for long-term volume growth. 1Q EBITDA/APAT was 95%/2.2x above estimates, owing to the lower-than-anticipated impact of COVID-19 on sales volumes and higher-than-anticipated margins. Margins were largely driven by three products, viz. pharma grade-Acetonitrile, DMA-HCL and Isopropyl amine. Voltas: Voltas 1QFY21 was slightly ahead of expectations as revenue/EBITDA declined by 52/77% YoY (HSIE 59/84%). UCP posted a revenue decline of 60% YoY (in-line) with RAC volume dip of 45% YoY (industry 49% dip). The company retained its market leadership (also in inverter) in RAC with market share expanding to 26.2%. EBIT margin was robust at 15.5% (HSIE 9.5%), led by product mix and cost-saving. EMPS revenue exceeded expectations, although increased provisioning and slow pace of execution led to the higher-than-expected loss. The companys performance in challenging times reinforces our long-term view. Market leadership in underpenetrated RAC along with an entry in large home appliances gives multi-year growth visibility. We increase EPS estimates by 1/3/3% for FY21/FY22/FY23. We value Voltas on a SoTP basis, arriving at an implied P/E of 32x (UCP 38x, EMPS 15x, EPS 12x P/E and Volt-Beko 2x P/S) to derive a target price of Rs 653. Maintain ADD. New India Assurance: NIACL is Indias largest insurer but...
|2020-08-18||Voltas Ltd. +||Nirmal Bang Institutional||649.55||740.00||649.55 (24.18%)||Target met||Buy|
Nirmal Bang Institutional
UCP outperforms with healthy margins; Retain Buy Voltas posted 1QFY21 consolidated sales of Rs12.9bn, down 51% YoY due to COVID-19 led disruptions. However, the topline was 24% above our/consensus estimate each. UCP sales fell 60% YoY to Rs7.1bn (55% of total sales). Voltas continued to outperform AC peers, both in terms of sales and margins. Despite the lockdown restrictions and smaller sales window of just 40 days post Unlock 1, Voltas managed to sell 0.29mn units of ACs, thereby maintaining its leadership with 26.2% YTD market share. EMPS revenue fell 37% YoY to Rs5.2bn (41% of total sales) owing to slow pace of execution while Engineering Products revenue declined 36%...
|2020-08-18||Voltas Ltd. +||ICICI Securities Limited||644.75||725.00||644.75 (25.10%)||Target met||Buy|
ICICI Securities Limited
Voltas lost almost 40 days of sales due to lockdown and reported ~51% YoY fall in revenue in Q1FY21. Revenues from UCP, electro-mechanical projects (EMPS) and engineering & product services declined ~60%, 37% and ~36%, respectively. The drag on EMPS business was largely on account of slow execution of international and domestic orders amid strict government regulations. Despite a strong order book of | 7663 crore, the lockdown situation may impact the pace of execution, job closures, thereby resulting...
|2020-08-18||Voltas Ltd. +||Rudra Shares and Stock Brokers Ltd||661.65||730.00||661.65 (21.91%)||Target met||Buy|
Rudra Shares and Stock Brokers Ltd
Lockdowns in the past several months have taken away a large portion of peak summer sales and the same would lead to a double industry volume decline in FY21Country-wide lockdown for the first half of the quarter led to a complete washout of sales, and it was only by the 3rd week of May that industry could resume a semblance of activity. Quick and nimble to respond, Voltas managed to grab the opportunity and sold over 3.4 lack units of Unitary cooling products in a window of 45 days, thereby maintaining its leadership with 26.9% market share as on June as per third party research....
|2020-08-17||Voltas Ltd. +||Motilal Oswal||644.75||700.00||644.75 (25.10%)||Target met||Buy|
Voltas gained further market share in the RAC (Room Air Conditioner) business and emerged as market leader in the Inverter category as well. It has also maintained a leadership position in Inverter ACs. Company-level inventory stood at 140 days, while that in the channel stood at 4045 days. The response for DC refrigerators has been encouraging, with the company accelerating its production post Unlock 1.0 owing to higher We expect system-level inventory to normalize by NovDec20; hence, FY22E should turn out to be a normal year. With a strong distribution network, coupled with less reliance on imports, we expect VOLT to continue its leadership position in the form a JV with the Beko brand to cater to a wider audience in the Consumer Durables space (beyond ACs) has come at the right time.
|2020-08-17||Voltas Ltd. +||Prabhudas Lilladhar||659.30||660.00||659.30 (22.34%)||Target met||Accumulate|
We increase our FY21, FY22 & FY23 earnings by 10.6%, 7.5% and 10.3% given 1) sustained market share gains in Room AC 2) encouraging response to Voltas-Beko portfolio in first season and 3) Sufficient forward visibility in MEP with strong order book (Rs77bn) led by domestic operations Even with lockdown disrupting peak summer season sales, VOLT continued to outperform the industry by reporting a 45% decline in RAC volumes vs 49% of industry on the back of 1) wide distribution reach (19,000 touchpoints) 2) heat-wave in the month of May and 3) strong brand recall. In MEP, although...
|2020-07-13||Voltas Ltd. +||Edelweiss||553.60||619.00||553.60 (45.70%)||Target met||Buy|
|2020-06-09||Voltas Ltd. +||Geojit BNP Paribas||553.65||528.00||553.65 (45.69%)||34.54||Sell|
Geojit BNP Paribas
We have trimmed down FY21-22 revenue estimates by 13.7%/12.5% on account of COVID-19 related challenges. Amidst uncertainty, we remain cautious and maintain our REDUCE rating on the stock with a revised target price of Rs. 528 based on 30x FY22E adj. EPS Weak EMP operations offset growth in UCP revenues Voltas registered a revenue growth of 1.3% YoY in Q4FY20 to reach Rs. 2,079cr. This growth was mainly attributable to growing revenue from UCP (+20.1% YoY to Rs. 1,199cr), on account of severe summer prediction and expected supply chain...
|2020-06-02||Voltas Ltd. +||ICICI Securities Limited||557.70||635.00||557.70 (44.63%)||Target met||Buy|
ICICI Securities Limited
Strong margin of UCP segment drives bottomline While the EMPS segment margin was down ~311 bps YoY at 1.4%, the UCP profitability surged 423 bps YoY to 14.6% in Q4FY20. While the management refrained from giving any future margin guidance, we believe FY21E margin is likely to get impacted by lower operating leverage. However, we also believe ~| 800 crore of liquid asset on the book would...
|2020-06-02||Voltas Ltd. +||Nirmal Bang Institutional||567.80||19.00||567.80 (42.06%)||Target met||Buy|
Nirmal Bang Institutional
UCP outperforms despite COVID-19; EMPS stays weak Voltas posted 4QFY20 consolidated sales of Rs20.9bn, flat YoY, 9%/5% above our/consensus estimate. UCP sales grew 20% YoY to Rs11.9bn (57% of total sales) despite loss of primary sales in March 2020 due to COVID-19 lockdown. Voltas maintained room AC leadership with 24.2% YTD (till Feb 2020) market share and also lead in inverter ACs in Jan-Feb 2020. EMPS revenue fell 18% YoY to Rs8bn (38% of total sales) due to slower pace of project execution amid COVID challenges. Order book is at life-time high of Rs78bn (up 56% YoY & 11% QoQ) with order inflow of Rs15.2bn in 4QFY20. Engineering Products revenue grew 21% YoY to...
|2020-06-01||Voltas Ltd. +||Prabhudas Lilladhar||567.80||564.00||567.80 (42.06%)||Target met||Accumulate|
VOLT gave a cautiously optimistic outlook given 1) outperformance in the UCP segment (50% growth vs 30% of industry in 11MFY20) and 50bps market share gain across RAC segments 2) encouraging response to VOLTBEK portfolio with 2% market share in key segments and 3) improved order book in MEP led by domestic operations. Although the industry is witnessing reasonable demand post lifting of lockdown in May, 1Q21 sales & profitability are likely to be impacted due to 1) washout summer season sales and 2) high channel inventory (60 days) limiting primary sales. Also, with migrants...
|2020-06-01||Voltas Ltd. +||Motilal Oswal||557.70||600.00||557.70 (44.63%)||Target met||Buy|
Voltas (VOLT) 4QFY20 earnings were 37% ahead of expectation led by the UCP segments outperformance. However, the cut in our TP is limited as the EMP business commands lower Revenue was flat YoY at INR20.9b, (in line with est). Due to lockdowns, secondary sales could not materialize and as such, dealer level inventory stood as high as 60 days at end-Mar20. As primary sales were also impacted, company level inventory stood at 90 Inverter ACs now form 64% of the total Split AC business and 50% of the overall Room AC business. However, VOLT is looking to focus on cash flow rather than just top line growth in the EMP segment. Market share in Frost-free refrigerators and Washing machines We expect the system level inventory to normalize by Nov-Dec20, and hence, FY22E should turn out to be a normal year. Total order book stood strong at INR78b (+57% YoY).
|2020-06-01||Voltas Ltd. +||Dolat Capital||567.80||650.00||567.80 (42.06%)||Target met||Buy|
|2020-03-30||Voltas Ltd. +||ICICI Securities Limited||476.90||535.00||476.90 (69.13%)||Target met||Hold|
ICICI Securities Limited
Our interaction with managements and dealers indicates significant prebuying activity of consumer goods during January-February 2020 on fears of supply related issues from China. While companies have secured supplies to avoid any disturbance in sales in Q4FY20, demand was negatively impacted in March 2020 owing to holiday and post that lockdown across countries. We also believe a late recovery in demand for consumer goods will also impact Q1FY21 performance due to 1) shortage of workers (due to heavy migration), 2) shift in focus on essential goods compared to discretionary products and 3) streamlining of supply chain....
|2020-02-24||Voltas Ltd. +||Geojit BNP Paribas||678.75||653.00||678.75 (18.84%)||Target met||Sell|
Geojit BNP Paribas
Despite a strong order book in EMP segment, we remain cautious on company's near-term outlook owing to the current macro environment. Hence, we reiterate our REDUCE rating on the stock with a roll forward target price of Rs. 653 based on 32x FY22E adj. EPS. Weak demand continues to put pressure on topline and margins Tepid economic growth and weak consumer demand slowed down company's growth. Q3FY20 revenue remained flat at Rs. 1,487cr (+0.2% YoY). EBITDA fell 15.7% YoY to Rs. 98cr, as EBITDA margin contracted by 120bps YoY due to higher employee benefit...
|2020-02-11||Voltas Ltd. +||HDFC Securities||683.25||724.00||683.25 (18.05%)||Target met||Buy|
Voltas is winning through better product range across the pyramid i.e. mass (window), mass premium (fixed speed and inverter) and premium (7 star products for EESL). This is in contrast with peers who have migrated towards inverters and 5-star products. Low channel inventory drives visibility for healthy growth in the coming quarters. While, RAC supply issue from China will remain overhang in the near term. Gradual recovery in EMPS can be a catalyst to improve overall performance in FY21. Voltas delivered another strong show in its UCP business while lumpiness in EMPS dragged the overall performance. UCP rev/EBIT growth at 14/36% with market share gain was heartening. Voltas has been able to manage rising competition better than its peers. EMPS rev/EBIT was down by 8/46% on account of slow execution (liquidity crisis impacting visibility of payments). While strong order book (40% YoY) gives visibility of ramp up in project business in 1HFY21. We cut EPS estimate by ~5% to factor-in delayed recovery in EMPS. We value Voltas on SOTP basis, EMPS/EPS/UCP at 17/20/35x on Dec-21 EPS and Volt-Beko at 1x P/S, translating to a TP of Rs 724. Maintain BUY.