Voltas drops after reports of foreign brokerage downgrade

Voltas dropped 1.62% to Rs 301 at 13:25 IST on BSE after reports that a foreign brokerage has downgraded the stock to underperform from buy.

Meanwhile, the BSE Sensex was up 31.95 points, or 0.13%, to 25,526.32.

On BSE, so far 61,069 shares were traded in the counter, compared with an average volume of 1.25 lakh shares in the past one quarter.

The stock hit a high of Rs 304.35 and a low of Rs 299.55 so far during the day. The stock hit a record high of Rs 360 on 23 June 2015. The stock hit a 52-week low of Rs 227 on 7 January 2015.

The stock had outperformed the market over the past one month till 16 December 2015, rising 17.56% compared with Sensex's 1.03% fall. The scrip had also outperformed the market in past one quarter, gaining 19.05% as against Sensex's 1.81% fall.

The large-cap company has an equity capital of Rs 33.09 crore. Face value per share is Re 1.

The foreign brokerage reportedly said that competition in air conditioner (AC) segment is intensifying and this can lead to lower margins for the company going ahead. Voltas may lose market share in near term, the foreign brokerage reportedly said.

Voltas' consolidated net profit dropped 11% to Rs 44.43 crore on 9.4% rise in net sales to Rs 1059.77 crore in Q2 September 2015 over Q2 September 2014.

Voltas is an air conditioning company and one of the world's premier engineering solutions providers and project specialists. Founded in India in 1954, Voltas offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.

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