This Tata Group Stock Hits 1-Year Low, ICICI Direct Sees Solid Gains

Tata Group stock Voltas has seen its share price fall significantly over the last few weeks. The shares have now hit a new 5-week low of Rs 752.05 on the Bombay Stock Exchange.

Brokerages optimistic on the stock of Voltas

In a report late last year, ICICI Direct had a significantly higher target price of Rs 1005 on the stock. This means an upside of nearly 33% from the current levels. "We value Voltas at Rs 1005 using SOTP i.e. 7x P/E for EMPS, 9x P/E for EPS and 50x P/E for UCP on FY24E EPS for each," the brokerage has said. One will have to wait for some more calls as the quarterly numbers are announced.

Prabhudas Lilladher too has a buy call on the stock of Voltas

A couple of weeks back too, brokerage firm Prabhudas Lilladher had placed a buy call on the stock of Voltas. "We are positive on the company for long term given leadership position in high potential RAC segment balance sheet comfort (Rs 8.6bn net cash H1FY23) and better traction in order flow from domestic as well as international side in EMPS segment.

"However, near term challenges related to demand and margins expected to continue due to price competition, high cost inventory & demand slowdown in UCP segment and slowdown in order flow from international side. We estimate a 20.9% EPS CAGR over FY22-25E. Resuming coverage with a 'BUY' rating," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage reports of Prabhudas Lilladher and ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.