1
Please refer to important disclosures at the end of this report
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1
Voltas Limited is an air conditioning and engineering company engaged in room
air conditioners, contract revenue, commercial refrigeration products and sale of
services. Early onset of the summer season in several parts of the country and
recovery of the cooling products business from the difficulties of demonetisation
pushed up the division’s revenues, the best growth in at least five years. The
growth is not only better than the 10% expansion in the room air conditioners
market last quarter but also exceeded the 20% growth reported by its listed peer
Blue Star. The fiscal first quarter (April-June, 2017) is also a seasonally strong
one for cooling products. Air-conditioner maker Voltas and Turkey’s Arcelik have
decided to set up a $100 million joint venture for making a foray into the
country’s consumer durables market. The partnership will also leverage the well-
known brand and distribution strengths of Voltas, and it will work towards
establishing the joint venture as a market leader for consumer durables in India.
The Company is virtually debt free. The company has been maintaining a
healthy dividend payout of 21.8%. The company reported a healthy profit growth
of 20.4% CAGR and return on equity of 15.4% for the last 3 years. Hence Buy.
BUY
CMP `448
52 Week High / Low
452/287
Avg. Daily Volume
1,31,684
Capital Goods
Market Cap (` cr)
14,809
1
BSE Sensex
30,302
Nifty
9,361
Face Value (`)
Reuters Code
VOLT.BO
1.2
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Voltas
Others | Capital Goods
May 25, 2017
2
Voltas | Capital Goods
May 25, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected]com Website: www.angelbroking.com
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Disclosure of Interest Statement Voltas
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)