Voltas hits new 52-week high after reporting mixed Q3 results; Nomura maintains buy
Voltas key cooling products segment, which accounts for over half of the companys revenue and makes appliances like purifiers, reported a more-than-21 per cent rise in revenue, noted the Reuters report.
The Tata Group company Voltas shares, after the release of its Q3 results, rose as much as 5.93 per cent in Wednesday’s session to notch a fresh 52-week high of Rs 1,075 apiece on the BSE.
The consolidated profit before exceptional items and tax at the electrical appliances maker fell 58 per cent from last year to Rs 23.85 crore in Q3, primarily due to higher costs.
Revenue from operations rose 31 per cent to Rs 2,626 crore as warmer-than-usual weather boosted demand for air conditioners.
“Voltas' key cooling products segment, which accounts for over half of the company's revenue and makes appliances like purifiers, reported a more-than-21 per cent rise in revenue,” noted the Reuters report.
At around 11:36 am, shares of the company traded with gains of 6.44 per cent at Rs 1,080.15 apiece.
What do brokerages make of Voltas after its Q3 show?
Nomura has retained its ‘buy’ call on the counter with a target of Rs 1,202, signifying a potential upside of over 18 per cent from the last closing price.
Conversely, Macquarie maintained its ‘neutral’ rating on the stock with a target of Rs 842, a downside of 17 per cent. The brokerage held that the company’s Unitary Cooling Products (UCP) segment is operating in line with the estimates.
At the same time, it pointed out the increasing competition in the UCP segment and the disappointing project margin.
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