⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
VOLTAS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | VOLTAS | Market Cap | 42,825 Cr. | Current Price | 1,295 ₹ | High / Low | 1,531 ₹ |
| Stock P/E | 87.2 | Book Value | 243 ₹ | Dividend Yield | 0.54 % | ROCE | 12.7 % |
| ROE | 9.79 % | Face Value | 1.00 ₹ | DMA 50 | 1,377 ₹ | DMA 200 | 1,382 ₹ |
| Chg in FII Hold | -1.85 % | Chg in DII Hold | 2.12 % | PAT Qtr | 59.7 Cr. | PAT Prev Qtr | 7.33 Cr. |
| RSI | 37.2 | MACD | -22.0 | Volume | 2,65,175 | Avg Vol 1Wk | 8,34,357 |
| Low price | 1,172 ₹ | High price | 1,531 ₹ | PEG Ratio | 9.29 | Debt to equity | 0.17 |
| 52w Index | 34.2 % | Qtr Profit Var | -44.9 % | EPS | 14.5 ₹ | Industry PE | 48.5 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT rose sharply from 7.33 Cr. to 59.7 Cr., but YoY profit variation is negative (-44.9%), showing volatility.
- Margins & Returns: ROCE at 12.7% and ROE at 9.79% indicate moderate efficiency compared to peers.
- Debt Ratios: Debt-to-equity at 0.17 reflects manageable leverage.
- Cash Flows: Dividend yield of 0.54% provides modest shareholder returns, supported by stable cash generation.
💹 Valuation Indicators
- P/E Ratio: 87.2 vs industry average of 48.5 → trades at a steep premium.
- P/B Ratio: Current Price / Book Value ≈ 5.3 → above intrinsic value.
- PEG Ratio: 9.29 → signals significant overvaluation relative to growth.
- Intrinsic Value: Current price (1,295 ₹) appears expensive compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Leading player in air conditioning and cooling solutions with strong brand recognition.
- Diversified product portfolio across consumer and industrial cooling segments.
- Moderate debt levels provide flexibility, though efficiency ratios remain modest.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,200 ₹ – 1,250 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking exposure to consumer durables, but staggered buying recommended due to premium valuation and earnings volatility.
✅ Positive
- Strong brand presence in cooling and consumer durables.
- Quarterly PAT rebound from 7.33 Cr. to 59.7 Cr.
- DII holdings increased (+2.12%), reflecting domestic institutional confidence.
⚠️ Limitation
- High P/E ratio (87.2) compared to industry average.
- PEG ratio of 9.29 signals overvaluation relative to growth.
- ROCE and ROE are modest compared to peers.
📉 Company Negative News
- Stock trading below both 50 DMA (1,377 ₹) and 200 DMA (1,382 ₹), indicating weak momentum.
- RSI at 37.2 and negative MACD (-22.0) suggest bearish technical outlook.
- FII holdings decreased (-1.85%), showing reduced foreign investor confidence.
📈 Company Positive News
- Quarterly PAT improved significantly compared to previous quarter.
- DII holdings increased (+2.12%), supporting domestic confidence.
🏭 Industry
- Industry P/E at 48.5 indicates sector trades at lower multiples.
- Consumer durables sector benefits from rising demand and urbanization.
- VOLTAS trades at a premium, reflecting brand strength but limited efficiency.
🔎 Conclusion
VOLTAS shows strong brand positioning and recent profit rebound, but trades at a steep premium with modest efficiency ratios. Entry is advisable near 1,200 ₹ – 1,250 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains strategically positioned in consumer durables, though valuation and technical signals warrant caution.
I can also highlight support and resistance levels with RSI/MACD signals to refine entry timing for VOLTAS if you’d like.