Voltas’ fortune tied to AC business despite Voltbek optimism
3 months, 2 weeks ago

Voltas’ fortune tied to AC business despite Voltbek optimism

Live Mint  

The cool comfort that stock returns of air conditioner company Voltas Ltd gives is offset by its valuation. Looking at the market capitalization of Voltas at ₹60,000 crore, the company’s 49% stake is valued at about ₹3,500 crore or merely 6% of overall valuation, according to ICICI Securities report dated 10 December. This leaves a residual market capitalization of ₹57,000 crore, mainly for electromechanical projects and engineering—combined as non-AC and AC business. Motilal Oswal Financial Services expects profit before interest and taxes of ₹381 crore and ₹819 crore for the two businesses, respectively, in FY25. However, the high growth rate in profit needs to be sustained for at least a couple of years to justify a 75x P/E multiple for the AC business.

Business Profit Crore Valuation Voltas Voltbek Ebitda Ac  despite  profit  voltas  valuation  crore  business  taxes  interest  fortune  voltbek  ebitda  ac  optimism  tied

History of this topic

Voltas to make hay while the sun shines, but weak margin cloud outlook
1 month, 3 weeks ago

Voltas to make hay while the sun shines, but weak margin cloud outlook

Live Mint  

Demand for consumer durable products is set to rise, fuelled by the income tax relief announced in Budget 2025, which is expected to boost purchasing power. Read this | Budget 2025 | A ₹1 trillion largesse for India's middle class In a seasonally weak December quarter, Voltas delivered a strong performance, with consolidated revenue increasing 18% year-on-year to ₹3,105 crore. …

Voltas shares surge over 6% as UBS doubles price target. Here's why
11 months, 1 week ago

Voltas shares surge over 6% as UBS doubles price target. Here's why

Hindustan Times  

Voltas share price: The shares of Voltas Limited rose over 6 percent today to reach ₹1,389. The company will 'surprise' on market share in the room air-conditioner segment, the brokerage noted, adding that broader market share of the company is also likely to rise to 23 per cent in FY26. Voltas share price: The brokerage noted that Voltas' joint venture …

Voltas AC sales are cool, but other challenges could chill growth momentum
11 months, 3 weeks ago

Voltas AC sales are cool, but other challenges could chill growth momentum

Live Mint  

Investors in Voltas Ltd have reasons to cheer, as the company on Sunday announced a remarkable 35% year-on-year increase in air conditioner sales for FY24, reaching 20 lakh units. Anticipating that the impressive volume growth would translate into increased profits, the market lapped up Voltas shares on Monday, leading to nearly 13% intraday surge, before the stock closed with a …

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