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Buy Voltas; target of Rs 690: Dolat Capital

Dolat Capital is bullish on Voltas has recommended buy rating on the stock with a target price of Rs 690 in its research report dated August 08, 2019.

August 12, 2019 / 03:43 PM IST
 
 
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Dolat Capital's research report on Voltas

In Q1FY20, Voltas reported results that were in-line with our expectations, adjusted for one-off. The results were driven by strong growth in the UCP division, which rose 47% YoY, due to a good summer—a fact corroborated by competitors and channel checks. While project business was down, we do not read too much into it and expect the business to remain steady on a full year basis. The company’s balance sheet is improving with negative capital employed in the UCP segment, reversing the WC expansion seen in Q4FY19. We continue to like the structural penetration story of ACs and believe Voltas is the best way to play this.

Outlook

We maintain our Buy rating, valuing it at 29x for FY21E with a TP of `690.

For all recommendations report, click here

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Broker Research
first published: Aug 12, 2019 03:43 pm

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