CMP: ₹1,659.75
Voltas has reported sturdy top-line development (46 per cent y-o-y, 15 per cent above BNPPEe), led by continued development momentum in Unitary Cooling Merchandise (51 per cent) and EMP (40 per cent) segments. Electro-Mechanical Initiatives’ EBIT margin (7.1 per cent) turned optimistic after six quarters, which drove an total 310 bp y-o-y EBITDA margin growth to eight.6 per cent.
PAT was up 2.6x to ₹330 crore (40 per cent/44 per cent) forward of Bloomberg consensus/BNPPEe).
Voltas focus remained on sustaining its market management throughout classes and drive additional quantity development. Administration retained its steering for prime single-digit EBIT margins within the UCP division, amid stiffer competitors, rise in commodity costs and forex depreciation. Administration appeared cautiously optimistic with the beginning of seasonally lean quarters, although stock ranges stay low in commerce channels.
The Voltbek JV continued to carry out properly with 50 per cent+ y-o-y quantity development, with the corporate aiming to attain EBITDA break-even within the close to future.
We want Voltas as one of the best play within the under-penetrated RAC trade and is on observe to be a pure- play white items firm. Factoring within the Q1 beat, we increase our FY25-27E EPS by 8-9 per cent. Our SoTP-based TP rises by 6 per cent to ₹1,660.
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