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You are here : IndiaNotes >> Research & Analysis >> Companies >> Voltas Ltd. >> Research

Voltas Q3FY18: PAT to grow at a CAGR of 14% over 2016 to 2019E; Overweight

Firstcall India Equity | 14 Feb, 2018  | Follow Author | Add to my Favourites 
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- Voltas Ltd is an air conditioning and engineering company. The company engaged in room air conditioners, contract revenue, commercial refrigeration products and sale of services. Consolidated net profit increased by 23.15% to Rs. 1004.40 mn in the current quarter as against Rs. 815.60 mn in the corresponding period of the previous year.

- Consolidated Revenue for the 3"d quarter stood at Rs. 13746.70 mn from Rs. 12001.20 mn in the corresponding period of the previous year, up by 14.54%.

- During Q3 FY18, consolidated EBIDTA was Rs. 1356.50 mn as against Rs. 1486.20 mn in the corresponding period of the previous year.

- EPS of the company stood at Rs. 3.04 as against Rs. 2.47 a share in the corresponding period of the previous year.

- Order Book of the segment stood at Rs. 48440 mn as at 31St Dec, 2017 as compared to Rs. 41960 mn in the corresponding quarter last year.

- New Orders booked during the current qauretr was Rs. 2250 mn under domestic and Rs. 3330 mn under International business.

- The consolidated Sales/Income from operations for the nine months period ended Dec 31St 2017 was higher by 9% at Rs. 45390 mn as compared to Rs. 40110 mn in the corresponding period last year. Profit after Tax was higher by 22.46%, at Rs. 3837.10 mn as compared to Rs. 3133.40 mn last year.

- Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 14% over 2016 to 2019E, respectively.

Outlook and Valuation


At the current market price of Rs. 593.30, the stock P/E ratio is at 35.74 x F Y18E and 32.24 X F Y19E respectively.

Earning per share (EPS) of the company for the earnings for FY18E and F Y19E is seen at Rs. 16.60 and Rs. 18.40, respectively.

Net Sales and PAT of the company is expected to grow at a CAGR of 9% and 12% over 2016 to 2019E, respectively.

On the basis of EV/EBITDA, the stock trades at 25.04 x for F Y18E and 22.16 x for F Y19E.

Price to Book Value of the stock is expected to be at 5.09 X and 4.40 x for F Y18E and F Y19E respectively.

Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ,, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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