Voltas Share Target: Share Price Falls 10% After Q4 Earnings, What Analysts Has To Say

Voltas Share Q4 Results

Voltas Ltd shares fell over 10% to 1,045 in early Friday BSE trade after the air conditioning and engineering services business announced a 23 percent year-on-year (YoY) fall in its consolidated net profit to 182.7 crore in the fourth quarter ended March 2022.

Voltas Ltd shares fell over 10% to 1,045 in early Friday BSE trade after the air conditioning and engineering services business announced a 23 percent year-on-year (YoY) fall in its consolidated net profit to 182.7 crore in the fourth quarter ended March 2022.

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Voltas Share Target Forecast

“Despite a high starting point, Voltas has managed to develop. Its market share has remained stable at roughly 25% to 26%, showing fierce competition in the RAC industry. Although we remain structurally constructive on the company, we believe that high valuations and obstacles in gaining further RAC shares will restrict near-term upside from present levels. Following the results call, we’ll reevaluate our projections. With a target price of 1,190, we now have a cut rating on the company “Yes Securities stated.

The prolonged winter, along with the spread of the third wave of mutant (Omicron) in January/February 2022, hampered trade and consumer moods, resulting in decreased primary cooling product offtake by channel partners, according to Voltas.

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However, the warmer weather in March 2022 changed the market picture, leading in a modest sales rebound for the quarter, according to the business.

Voltas’ poorer-than-expected performance in Q4FY22, according to ICICI Securities, is due to decreased sales from the EMPS business and a delay in price rises.

“We expect that increased demand (because to the extreme heat) and a hybrid work model (i.e. a shift in lifestyle) will continue to support Voltas’ UCP segment sales in FY23.” However, we anticipate management’s comments on price increases to offset rising raw material costs “ICICI Securities was introduced.

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Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
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