Hold Voltas; target of Rs 1185: Emkay Global Financial

Emkay Global Financial’s report on Voltas According to our interaction with management, it is now pinning hopes on a strong summertime season for RACs as the high base of Q3FY21 could limit income growth in Q3FY22E. The prior-year quarter benefited from pent-up demand and channel stock liquidation. In the last three quarters, the blended typical price hike has actually remained in the variety of 12-15%, and a large part of it was reflected in Q2. Any incremental price boost would depend on commodity rate movements. Order inflow in EMPS are anticipated to improve from Q4. Voltas is forming a compressor manufacturing JV with the goal of generating a strong tech partner, the financial elements of the JV are still being worked out. The focus is on self-reliance and decreasing OEM dependence via own manufacturing under the PLI scheme.Outlook Management repeated the EBIT margin

assistance for UCP at 11-12%, with expectations for a gradual healing of the task business’margins. We keep FY22-24 estimates and rate the stock as Hold, with a the same SoTP-based Dec ’22 TP of Rs1,185. For all recommendations report, click here Disclaimer: The views and investment ideas revealed by investment experts/broking houses/rating firms on moneycontrol.com are theirown, and not that of the website or its management. Moneycontrol.com advises users to consult licensed specialists before taking any investment decisions. Learn more Broker