The shares of Voltas Limited, a tata group stock opened at Rs 800 on Friday and shed as much as 2.5 percent to reach its new 52-week low of Rs 785. The shares hit their previous 52-week low of Rs 798.30 yesterday.
The stock reached its 52-week high of Rs 1,347.65 in April this year. Since then it has been on a downward trend and is currently trading at a discount of 41 percent from those levels. On a yearly basis, it has shed 35 percent.
Voltas Limited, a Tata group company, is engaged in the business of air conditioning, refrigeration, and electro-mechanical projects as an EPC contractor both in domestic and international geographies. It is the largest air conditioning company in India.
In Q2FY23, the company reported a total revenue of Rs 1,768.36 Crore which was an increase from Rs 1,689.08 Crore in the same period the year earlier. However, their net profit declined to Rs 22.87 Crore from Rs 123.18 Crore in Q2FY22.
Brokerage firm CLSA upgraded the stock to “outperform” and has assigned a target price of Rs 935 per share which represents an upside of 19 percent from the current levels.
“The medium-term penetration-led demand growth for ACs would be in the high single digits. Industry margins should also recover from multi-year lows on softening commodity prices.” highlights the brokerage firm.
Written by Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
