Voltas - ACCUMULATE - TP Rs.610 - Result Update - Kotak

- Voltas delivered all-round good set of quarterly numbers led by strong performance of the MEP segment. As a result, broad numbers were higher than our estimates. Improvement in order book and sustained uptick in order intake is a positive for the MEP business.

- We remain positive on the long term growth potential of the room AC industry. Voltas is the market leader and has a strong brand and distribution network in the industry. It is well positioned to ride the growth in the industry. Post the strong quarter numbers, we are finetuning our earnings forecast and also our target price.

- However, in view of modest upside, we maintain our Accumulate rating (BUY on declines) on the stock with a revised target price of Rs 610 (prior target of Rs 506).

- Risks include - Execution delays in ongoing MEP projects and benign weather conditions during the summer which is the peak season for the room AC segment

Shares of VOLTAS LTD. was last trading in BSE at Rs.583.7 as compared to the previous close of Rs. 600.35. The total number of shares traded during the day was 70576 in over 1544 trades.

The stock hit an intraday high of Rs. 603.9 and intraday low of 578.25. The net turnover during the day was Rs. 41458250.

Source : Equity Bulls

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