Voltas - Preferred pick; Retain Accumulate - Emkay

Voltas reports healthy performance (1) Revenue growth at 12% yoy (2) EBITDA mgn at 7.5% (3) APAT growth at 11% yoy. But, net loss at Rs1.1 bn due to Rs2.8 bn cost over-runs

- EMP (+19% yoy) & UCP (+19%) division post strong revenue growth - ahead estimates. EPS division slips - revenues down 27% qoq - below estimates

- Concerns on order inflows recede.. Secures Rs15.1 bn orders in Q3FY!2 and YTD 66% of FY12E target. Order book increases to Rs50.9 bn - lends visibility until FY13E

- Retain FY13E earnings estimates of Rs8.7 per share. Reiterated as preferred pick in ECG sector. Retain Accumulate rating with target of Rs121.

Source : Equity Bulls

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