Voltas share price gained over 13% intra day after the Tata Group firm reported a 12.52 per cent increase in its consolidated net profit in the March 2020 quarter. Share price of Voltas rose up to 13.24% to Rs 543.55 compared to the previous close of Rs 480 on BSE. Voltas share has lost 6.89% in last one year against a 16% fall in Sensex.
The stock has fallen 18.25% since the beginning of this year. Voltas stock opened with a gain of 5.21% at Rs 505 on BSE. Market cap of the firm rose to Rs 17,834 crore. Total 3.74 lakh shares changed hands amounting to turnover of Rs 19.85 crore. The stock closed 12.75% higher at Rs 539.75.
The stock hit 52 week high of Rs 740.50 on February 20, 2020 and 52 week low of Rs 428 on May 6, 2020.
27 of 38 brokerages rate the stock 'buy' or 'outperform', 9 ' hold', one 'underperform' and one 'sell', according to analysts' recommendations tracked by Reuters.
HSBC has a buy call on the large cap stock with a target price of Rs 735. The brokerage said room AC industry is likely to post double-digit growth in 2020. Margins are likely to rise for room AC segment with strong scale-up in projects business, HSBC added.
India's largest AC manufacturer mostly has positive recommendations from brokerages for next one year. The leading air-conditioner manufacturer reported net profit of Rs 159.50 crore in the March 2020 quarter against Rs 141.74 crore net profit in the January-March quarter of the last fiscal.
"In spite of substantial loss of business in the crucial month of March 2020 due to a sudden nationwide lockdown on account of COVID-19, consolidated total income for the quarter ended March 31, 2020 was higher at Rs 2,150 crore as compared to Rs 2,120 crore in the corresponding quarter last year," said Voltas.
It further said "profit before exceptional items and tax was significantly higher by 32 per cent, at Rs 219 crore as compared to Rs 166 crore in the corresponding quarter last year."
Total expenses fell to Rs 1,911.86 crore in Q4 FY2019-20 against Rs 1,935.09 crore, down 1.2 per cent. For 2019-20 fiscal, Voltas net profit rose 1.39 per cent to Rs 521.05 crore against Rs 513.88 crore in the previous year. Its total income for the fiscal was Rs 7,888.68 crore, up 7.91 per cent. It was Rs 7,310.32 crore in 2018-19.
Voltas is an air conditioning and engineering company is engaged in room air conditioners, contract revenue, commercial refrigeration products and sale of services. It has presence in India and the Middle East among others.
By Aseem Thapliyal