Voltas Share Forecast; Stock Price Falls 5% After Q4 Results As Credit Suisse Downgrades Stock And CLSA Retains Sell
The stock of Voltas was trading 4% down in the morning session on May 10, a day after the business released its earnings.
The firm posted a poor set of figures for the March quarter, with consolidated net profit falling by 24% year on year (YoY) to Rs 183 crore due to joint venture losses (JVs).
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Voltas reported a 1% increase in sales to Rs 2,667 crore, thanks to a 13 percent increase in unitary cooling products and a steep drop in electro-mechanical projects and services. Due to rising raw material costs and a delay in price rises, the EBITDA margin fell 268 basis points to 9.8%.
An longer winter combined with the third wave impacted commerce, resulting in decreased primary offtake of cooling items by channel partners, according to the business. However, in March 2022, the warmer weather changed the market picture, resulting in a modest sales rebound.
On the NSE, the stock was trading at Rs 1,000.45 at 10:54 a.m., down Rs 43.60 or 4.18 percent. It has traded between a high of Rs 1,033.70 and a low of Rs 993.30 during the day.
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Credit Suisse has downgraded the stock from neutral to underperform and lowered the target price to Rs 975 from Rs 1,255. According to a CNBC-TV18 report, it has also slashed 2023/24E by 10%/13 percent to Rs 21.7/26.6 accordingly.
CLSA has kept its sell recommendation on the stock and reduced the price objective to Rs 1,000. Summer demand was high, but profit expectations were modest, according to the company. Due to lower-than-expected performance, it has reduced EBITDA expectations by 2-6 percent.
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Citi has kept its buy recommendation but reduced the target price to Rs 1,225 per share from Rs 1,378. It is believed that some market share was lost, but that the company would recover quickly. “Voltas maintains its dominant position in the air-conditioning industry. Voltbek’s market share is likewise increasing “it was added
