Voltas - Concerns persist, but priced in – maintain BUY - Religare

VOLT's Q3 adj. PAT at Rs 368mn (down 37% YoY) missed our estimates on muted performance of the EMPS business which was impacted by execution delays and Sidra project turnover booking at nil margins.

Amid intense competition in the sector, VOLT's order book slumped 17% YoY to Rs 42.3bn. Given the continued pressure on EMPS profits, we cut our FY15E EPS by 13% and lowering our Mar'14 target price to Rs 110 (from 130).

With concerns largely priced in, we maintain a BUY on the stock.

Source : Equity Bulls

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