Motilal Oswal Reinitiates “Buy Call” To Tata Stock For 22% Likely Gain, TP Rs 1000

Motilal Oswal has assigned buy call to large cap Tata Group stock Voltas Ltd with target price of Rs 1000 apiece after the recent quarterly results. Last trading price of Voltas Ltd share on BSE is Rs 818.50 per share with marginal intraday fall of 0.01%. Voltas shares declined 3.95% in last 1-week and over 5% in last 1-month. If you buy Voltas shares now at the last trading price of Rs 818.50 apiece, you can get likely gain of 22.17%. Check details below:

Voltas Ltd Stock Performance & Return: Last trading price of Voltas stock on BSE is Rs 818.50 per share. The stock's 52-week high price is quoted at Rs 933.50 per share and 52-week low price is Rs 737.60 per share, respectively. The company's market capitalisation is Rs 27,082.92 crore.

Voltas shares declined over 5% in last 1-month, soared 7% in last 3-months, fell 5% in last 1-year, slipped again by 30% in last 2-years, and offered return of 16% in last 3-years. In last 5-years, Voltas shares surged 61% and offered return of 881% in last 10-years-time.

Voltas Ltd Valuation: According to Motilal Oswal, "Long-term positives to outweigh near-term challenges; reinitiate with a BUY: We reinitiate our coverage on VOLT with a BUY rating and a TP of INR1,000 premised on 40x FY25E EPS (similar to last 10 years' one-year forward average P/E multiple, before losses of Voltbek) and INR38/share for Voltbek. We expect VOLT to retain a market share of 21%+ over the next few years as it would continue to enjoy the leadership position in RAC segment."

Key Risks: Motilal Oswal also highlighted the key downside risks that are: 1) sustained competition in the RAC segment for a longer period, 2) weather-related disappointments as the dependence is largely on a single category, and 3) reduced discretionary spends of consumers.

Voltas Ltd About: Voltas offers a comprehensive range of cooling solutions including room air conditioners, air coolers, air purifiers, water dispensers, water coolers, commercial refrigeration and commercial air conditioning products in its portfolio. Voltas is one of the leading companies within the Tata group with a footprint of over 25,000 customer touchpoints. It has also recently launched a range of Voltas Beko home appliances, through its JV in India, in equal partnership with Arcelik.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.