Voltas slips 9% post poor Q4 numbers; brokerages cut target price

Shares of Voltas slipped nearly 9 percent intraday Friday on the back poor March quarter numbers.

The company has reported a 3 percent fall in its consolidated net profit at Rs 194 crore for the fourth quarter ended March 2018 against Rs 200 crore in the same quarter last fiscal.

The consolidated total income for the quarter ended March 31, 2018 was at Rs 2092 crore as compared to Rs 2098 crore in the corresponding quarter last year, company said in release.

The company has recommended dividend of Rs 4 per share on face value of Re 1 per share (400 percent) for the year 2017-18.

Brokerage: Citi | Rating: Buy | Target: Rs 700

Citi has maintained buy rating on Voltas with a target of Rs 700 per share.

Research house has preferred Crompton Consumer over Voltas.

The company is toning down of FY19 UCP growth and margin contraction led to cut EPS 6-7 percent, Citi added.

Brokerage: Deutsche Bank | Rating: Sell | Target: Rs 470

Deutsche Bank has maintained sell call with a price target Rs 470 per share.

The weak volume growth in cooling is likely to continue and key disappointment was flat March quarter revenues.

The miss on revenues was partly compensated by strong margins, it said.

Brokerage: Edelweiss| Rating: Buy | Target: Rs 685

Edelweiss has maintained buy call on Voltas and cut price target to Rs 685 from Rs 745.

According to firm, the poor season play is a spoilsport while growth profile intact.

Inverter ACs gaining momentum, while roll out of white goods range and branding/marketing remain vital for Voltas, it added.

Brokerage: Goldman Sachs | Rating: Buy | Target: Rs 700

Goldman Sachs has maintained buy call on Voltas and slashed price target to Rs 700 from Rs 760 per share.

Goldman Sachs sees the risk-reward as favourable as trades at discount to peers.

At 10:09 hrs Voltas was quoting at Rs 534.65, down Rs 48.90, or 8.38 percent on the BSE.