Stock To Buy: Motilal Oswal Assigns Buy Call To Tata Group Stock, TP Rs 1000

Brokerage house Motilal Oswal, in its brokerage report dated September 5, 2023, assigned buy call to Tata Group stock, Voltas Ltd with a target price of Rs 1000 apiece. Current market price of Voltas share is Rs 890.30 apiece after a decline of 0.76%. Voltas shares witnessed 2.42% decline in last 6-months and offered 11% return year-to-date. If you buy Voltas stock at current market price of Rs 890.30 per share, you can fetch likely return of 12.36%. Check details below:

Voltas Stock Outlook & Return In Last Few Years: Current market price of the large cap consumer durables sector stock is Rs 890.30 per share on BSE. Its 52-week high price is Rs 991.40 per share and 52-week low price is Rs 737.60 per share, respectively. The company has a market capitalisation of Rs 29,458.67 crore. In last 1-month, Voltas stock surged 8%, gained 10% in last 3-months, declined 9% in last 1-year, fell again by 24% in last 2-years, and offered shareholders return of 38% in last 3-years. In last 10-years, Voltas shares jumped 1239%.

Voltas Valuation: According to Motilal Oswal, "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."

Voltas (VOLT) is a market leader in the room air conditioners (RAC) segment. Its share had gradually risen to 25.2% in FY21 (from 20.8% in FY15) before declining to 23.4%/21.6% in FY22/FY23. We estimate VOLT to lead the RAC segment with a market share of 21-22% in FY24/25, added Motilal Oswal.

Voltas Financials: The company for the quarter ended June 30, 2023 announced its consolidated total income at Rs 3,429.83 crore, up 14.20% as against its last quarter total income of Rs 3,003.46 crore. It announced its recent quarter net profit after tax at Rs 160.46 crore.

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.