Voltas share price jumped almost 3% intraday in Tuesday's session after the company declared its April-June quarter numbers and brokerages maintained "buy" call on the stock.
Company's consolidated net profit fell by 30.05% to Rs 102.86 crore for the quarter ended June as against Rs 147.05 crore during the same period a year ago.
Following the result updates, Voltas share price opened at Rs 630.90 and later climbed 2.88% to the intraday high of Rs 646.8 on BSE against the earlier close of Rs 628.70. The stock also touched an intraday low of Rs 629.35 during today's session.
Stock price of Voltas has jumped 6% in one week and 11% in one month. Voltas shares trade higher than 5, 20, 50, 100 and 200-day moving averagesRevenue from operations fell 50% YoY to Rs 1,295 crore in Q1 FY21 from Rs 2,536.80 crore in Q1 FY20.
Company's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 135.67 crore in Q1 FY21, down 49.84% from Rs 270.47 crore, YoY.
Research and brokerage firm Motilal Oswal Financial Services upgraded Voltas stock to buy, with a target price of Rs 700 apiece post-April-June quarter earnings. In its rationale, the brokerage said it expects system-level inventory to normalize by Nov-Dec'20 and hence, FY22E should turn out to be a normal year. MOFL also cut FY22 EBITDA estimates by 5% as it has lowered margin estimate in the Projects business to model-in some conservatism, although added that Voltas remains the preferred play in the underpenetrated AC industry in India.
ICICI Direct also maintained a buy rating on the stock with a revised target price of Rs 725 per share and said," Being a market leader in the cooling product segment, Voltas will recoup sales with recovery in demand. We like Voltas for its strong brand recall and healthy balance sheet, which will cushion the company from any adverse situations arising due to project business."
Meanwhile, CLSA downgraded Voltas stock to 'outperform' from 'buy' but raised its target price to Rs 670 per share from Rs 560 earlier and added that the company's performance was better than expected in a COVID-hindered Q1.
Dolat Capital in its report said," The air conditioner performance posted a lower decline than peers with strong 15% margins. The impact on profitability was mainly due to slowdown in projects business along with expected credit loss provisioning." The broking house maintained "buy" on Voltas stock with a target of Rs 730 per share.
Prabhudas Lilladher also maintains a positive stance on the company, given its leadership position in high potential RAC segment, balance sheet comfort (Rs 15 billion net cash) and sustained order win in the MEP segment. The brokerage has kept 'accumulate' rating on the stock with a target of Rs 660 per share.
"The company's performance in challenging times reinforces our long-term view. Market leadership in underpenetrated RAC along with an entry in large home appliances gives multi-year growth visibility. We increase EPS estimates by 1/3/3% for FY21/FY22/FY23, said Naveen Trivedi, Institutional Research Analyst, HDFC Securities and Maintain ADD rating with a target price of Rs 653.