1034.25 14.05 (1.38%)
192.0K NSE+BSE Volume
BSEJun 23, 2021 10:40 AM
The 22 reports from 8 analysts offering long term price targets for Voltas Ltd. have an average target of 1056.14. The consensus estimate represents an upside of 2.12% from the last price of 1034.25.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-05-16||Voltas Ltd. +||Edelweiss||999.35||1182.00||999.35 (3.49%)||14.29||Buy|
|2021-05-16||Voltas Ltd. +||Motilal Oswal||983.65||1060.00||983.65 (5.14%)||Target met||Neutral|
VOLT's 4QFY21 earnings were 28% better than our expectation, led by better than expected margins in EMP and UCP segment. Voltas continues to be No.1 player in Room Air Conditioners (RAC), with a market share of 25.6%. Favorable product mix aided UCP margin as the share of Inverter ACs now constitutes 77% of Split AC sales (64% in 4QFY20). Current valuations adequately factors in franchise strength of the UCP business. We note that a large part of the margin surprise is due to cut in ad spends and low-cost inventory that was procured last year (~200bp advantage). We...
|2021-05-15||Voltas Ltd. +||HDFC Securities||999.35||1100.00||999.35 (3.49%)||Target met||Accumulate|
Voltas: Voltas continued to surprise both on revenue and margin front, beating our as well as street's expectation. UCP revenue/EBIT grew by 20/28% YoY (HSIE 25/20%) despite firm base (4QFY20 revenue/EBIT growth of 20/69%). UCP volume growth was at 18% YoY and YTD market share was at 25.6% (24.2% last year). Market share gain, pre-buying, increased mobility, and anticipation of strong demand in season supported the 4Q growth. UCP revenue/EBIT growth in FY21 was at -13/-2% YoY despite a firm base (29/57% in FY20) and summer 2020 being a washout. . We were expecting supply constraints and RM inflation to impact EBIT margin by (60bps) in 4Q but Voltas surprised with 100bps EBIT margin expansion to 15.6% (12 quarters highest margin). EMPS revenue was up by strong 37% YoY (-18% in 4QFY20) and 9% QoQ, HSIE 25%. EMPS EBIT margin also improved sharply by 700bps to 8.4% (10 quarters highest margin), HSIE 3.5%. COVID-led lockdown again reduced selling window for RAC (impact is unlike last year). We cut our EPS estimates for FY22 by 7% while maintain for FY23. We value Voltas on SoTP basis, (UCP/EPMS/EPS P/E at 45/15/15x and Volt-Beko P/S of 4x) on Jun-23 (earlier Mar-23) to derive a target price of INR 1,100 arriving at an implied P/E of 37x. Maintain ADD. BSE: BSE delivered the best quarterly performance over the past four years with revenue growth of 26% QoQ and a margin of 30.3% (multi-quarter high). Growth was driven by market-linked revenue, with core transaction/book building increasing by 46.7/81.2% QoQ. BSE gained...
|2021-05-14||Voltas Ltd. +||Prabhudas Lilladhar||1008.90||955.00||1008.90 (2.51%)||Target met||Hold|
We continue to like VOLT for the longer term given 1) leadership position in high potential RAC segment 2) balance sheet comfort (Rs11bn net cash) and 3) Restructuring in B2B business to focus on B2C. We estimate 29.8% EPS CAGR over FY21-23. Maintain Hold rating with SOTP based target price of...
|2021-02-25||Voltas Ltd. +||HDFC Securities||1018.15||1018.15 (1.58%)||Accumulate|
Near-term outlook: Pent-up demand (most seasonal categories missed out massively in the last season), work-from-home (to support convenience driven categories), improving housing activities and resumption of Capex will sustain strong revenue traction in the coming quarters too. Leading companies are expected to pass on raw material inflation while restoring operational cost will be compensated by oplev. Thereby, EBITDA margin will remain healthy in the coming quarters albeit margin expansion is expected to be slower than the past two quarters. Earnings potential will sustain the rich valuation and seasonal channel filling will be the key monitorable for stock performance. In continuation to our take in our Appliance Thematic (Looking Beyond Near-term Disruption), wherein we talked about faster recovery of B-C categories, share gain by leading players, and multi-year growth opportunity drivers, our HSIE CD index clocked robust 11/26% revenue/EBIT growth in the past two quarters. We maintain our view that Appliance companies would grow through multiple drivers like penetration, housing demand, industrial Capex, convenience, and cheap finance. Leading players are present mainly in the urban markets with incremental distribution expansion around semi-urban and rural markets. A large untapped market is available to leading companies, which provides headroom for growth in the coming years. RAC, Kitchen Appliances, Ref and W/M will be driven by consumers convenience, rising electrification, aspirational demand, and expansion of distribution.
|2021-02-17||Voltas Ltd. +||Geojit BNP Paribas||1001.45||1106.00||1001.45 (3.28%)||Target met||Hold|
|2021-02-16||Voltas Ltd. +||ICICI Securities Limited||1037.65||1260.00||1037.65 (-0.33%)||21.83||Buy|
ICICI Securities Limited
Consolidated revenue growth of ~33% YoY was much ahead of our estimates led by 40%, 26% and 46% UCP, electro mechanical project and services (EMPS) and engineering products & services division (EPS), respectively. The strong revenue growth in the EMPS segment was largely driven by execution of international orders amid improved labour availability and access to project sites. Further, in the process of restructuring its business under B2B and B2C categories separately, the board has approved transfer of its domestic project business to its wholly owned subsidiary...
|2021-02-15||Voltas Ltd. +||Motilal Oswal||1037.65||1125.00||1037.65 (-0.33%)||Target met||Neutral|
VOLT's 3QFY21 earnings were 31% better than our expectation, led by betterthan-expected execution in the EMP segment, strong volume growth in the UCP segment, with ongoing cost rationalization leading to higher margin. It has retained its numero uno position in Inverter Air Conditioners/Room Air Conditioners (RAC) with a market share of 21.8%/26% in Dec'20. Share of Inverter ACs now constitutes 60% of RAC sales (v/s 49% in 3QFY20). With a rise in commodity prices, the management has undertaken a 5-6% price increase across the UCP segment, with COVID-related cost cuts providing a cushion to margin. We believe the risk to margin exists in this highly...
|2021-02-15||Voltas Ltd. +||Edelweiss||1037.65||1141.00||1037.65 (-0.33%)||10.32||Buy|
|2021-02-15||Voltas Ltd. +||Prabhudas Lilladhar||1032.10||1000.00||1032.10 (0.21%)||Target met||Hold|
VOLT management remained cautiously optimistic on the upcoming summer season sales given commodity cost inflation and resulting price hikes. However, the management remains confident of growing faster than the RAC industry while maintaining margins led by 1) wide distribution reach (c.19,000 touchpoints) 2) strong brand recall 3) supply chain efficiencies and 4) calibrated price increases. VOLT maintained its RAC market leadership with 26% share and is likely to gain from Govt's thrust on atma-nirbhar initiative in Room AC. MEP segment continued to improve sequentially while focusing...
|2020-11-18||Voltas Ltd. +||Geojit BNP Paribas||770.30||848.00||770.30 (34.27%)||Target met||Hold|
|2020-11-09||Voltas Ltd. +||Motilal Oswal||790.60||775.00||790.60 (30.82%)||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 (56.31%)||Target met||Buy|
|2020-08-18||Voltas Ltd. +||HDFC Securities||644.75||653.00||644.75 (60.41%)||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. +||Rudra Shares and Stock Brokers Ltd||661.65||730.00||661.65 (56.31%)||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....
|2020-08-18||Voltas Ltd. +||ICICI Securities Limited||644.75||725.00||644.75 (60.41%)||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...
|2020-08-17||Voltas Ltd. +||Prabhudas Lilladhar||659.30||660.00||659.30 (56.87%)||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...
|2020-08-17||Voltas Ltd. +||Motilal Oswal||644.75||700.00||644.75 (60.41%)||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.
|2020-07-13||Voltas Ltd. +||Edelweiss||553.60||619.00||553.60 (86.82%)||Target met||Buy|
|2020-06-09||Voltas Ltd. +||Geojit BNP Paribas||553.65||528.00||553.65 (86.81%)||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...