Voltas shares crack 9% after operationally weak numbers in Q4; what should investors do with Tata group AC maker stock?

Voltas share price NSE, Voltas Q4 results: Shares of Voltas on Wednesday, May 8 cracked nine per cent after the Tata group AC maker logged a 22.75 per cent fall in consolidated net profit to Rs 110.64 crore for the March quarter impacted by higher expenses. Extending the declining trend for the sixth trading session, the Voltas stock slipped as much as 9.15 per cent to the day's low of Rs 1,262 on NSE in opening deals. At close, the counter settled at Rs 1,323.15, down 4.75 per cent. 

According to the company's regulatory filing, its fourth-quarter revenue increased 42 per cent to Rs 4,203 crore, and its margin contracted by 290 basis points to 4.5 per cent. Zee Business analysts had pegged the Air conditioning and engineering services provider's quarterly net profit at Rs 179 crore, revenue at Rs 3,789 crore and margin at 6.8 per cent. 

Total expenses in the fourth quarter were higher at Rs 4,044.90 crore compared to Rs 2,761.45 crore in the corresponding period a year ago.

In the fourth quarter the unitary cooling products business segment revenue grew by 44 per cent to Rs 2,955 crore as compared to Rs 2,049 crore in the corresponding quarter of the previous year on account of a better product mix enhancement approach, the company said.

Voltas share price target: What should investors do with Tata group AC maker stock? Here's what brokerages say

Nomura has maintained a buy call on Voltas with a target of Rs 1,450 apiece. In addition, Morgan Stanley has retained an equal-weight on the counter with a target of Rs 1,160 apiece. 
 
Meanwhile, Macquarie has continued with a neutral rating with a target price of Rs 842 apiece. The global brokerage highlighted the following key points in its note:

• Q4 all round margin miss
• UCP margins disappoint notwithstanding seasonal demand strength
• FY24 YTD RAC market share at 18.5% vs 19% YTD on December 23 implies a market share loss in Q4

Voltas dividend 2024

Voltas has recommended a dividend of Rs 5 per share of the face value of Re 1 per share for the year 2023-24 subject to the approval of shareholders of the company.

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