 "This Tata group stock slipped 12% in trade today after posting Q3 results")
Voltas, a Tata group company, shares slumped 12 per cent on Thursday, logging an intraday low at Rs 1,298.55 per share which was just 3.4 per cent away from its lower circuit of Rs 1,254.9 per share on BSE. The selling pressure on the counter came after the company swung to profit from loss a year ago but missed Bloomberg's estimate.
Around 10:30 AM, Voltas share price was down 11.63 per cent at Rs 1,304.55 per share on BSE. In comparison, the BSE Sensex was up 0.47 per cent at 76,889.97. The market capitalisation of the company stood at Rs 43,165.57 crore. The 52-week high of the stock was at Rs 1,946.2 per share and the 52-week low was at Rs 989.35 per share.
On Wednesday, after market hours, Voltas reported a consolidated net profit of Rs 132.13 crore as compared to a loss of Rs 30.41 crore a year ago. However, this was lower than Bloomberg's profit estimation of Rs 158.21 crore.
The revenue of the company rose 18.3 per cent to Rs 3,105.11 crore for the third quarter compared to Rs 2625.72 crore in the year-ago period.
As per the filing, for the quarter ended December 31, 2024, the consolidated total income grew by 18 per cent, reaching Rs 3,164 crore, as compared to Rs 2,684 crore a year ago. Profit before tax soared by 699 per cent, amounting to Rs 191 crore from Rs 24 crore.
What do brokerages recommend on Voltas?
Macquire maintained a 'Neutral' rating on Voltas with a target price of Rs 1,595 per share. Goldman Sachs continued with 'Sell' and cut the target price to Rs 1,400 per share from Rs 1,500.
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Investec iterated 'Hold' with a target of Rs 1,610 per share. Morgan Stanley reiterated 'Overweight' rating with a target of Rs 1,975 per share and ICICI Securities upgraded to 'Add' from 'Hold' but cut the target price to Rs 1,630 per share from Rs 1,700.
Voltas is a air conditioning and engineering solutions provider and a projects specialist. Founded in India in 1954, Voltas is part of the Tata Group, and in addition to room air conditioners, Voltas also produces and sells air coolers, air purifiers, water dispensers and water coolers, commercial refrigeration, commercial air conditioning products.
In the past one year, Voltas shares have gained 35 per cent against Sensex's rise of 7.5 per cent.