⚠ 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: 3.4
| Stock Code | VOLTAS | Market Cap | 47,053 Cr. | Current Price | 1,423 ₹ | High / Low | 1,582 ₹ |
| Stock P/E | 95.8 | Book Value | 243 ₹ | Dividend Yield | 0.49 % | ROCE | 12.7 % |
| ROE | 9.79 % | Face Value | 1.00 ₹ | DMA 50 | 1,447 ₹ | DMA 200 | 1,408 ₹ |
| Chg in FII Hold | -1.85 % | Chg in DII Hold | 2.12 % | PAT Qtr | 59.7 Cr. | PAT Prev Qtr | 7.33 Cr. |
| RSI | 43.9 | MACD | -11.0 | Volume | 4,69,161 | Avg Vol 1Wk | 8,65,406 |
| Low price | 1,172 ₹ | High price | 1,582 ₹ | PEG Ratio | 10.2 | Debt to equity | 0.17 |
| 52w Index | 61.2 % | Qtr Profit Var | -44.9 % | EPS | 14.5 ₹ | Industry PE | 43.3 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT at 59.7 Cr. vs 7.33 Cr. shows recovery, but overall profit variation (-44.9%) indicates volatility. EPS at 14.5 ₹ is modest.
- Margins & Returns: ROCE at 12.7% and ROE at 9.79% reflect moderate efficiency, below industry leaders.
- Debt: Debt-to-equity ratio of 0.17 is manageable, balance sheet remains stable.
- Cash Flow: Supported by operations, but profitability swings raise caution.
💹 Valuation
- P/E Ratio: 95.8 vs Industry PE of 43.3 → Significantly overvalued relative to peers.
- P/B Ratio: Current Price 1,423 ₹ vs Book Value 243 ₹ → High premium.
- PEG Ratio: 10.2 → Expensive relative to growth prospects.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Strong brand in consumer durables and air conditioning solutions.
- Wide distribution network and diversified product portfolio.
- Moderate efficiency metrics limit competitive edge compared to peers.
📈 Technicals & Entry Zone
- RSI at 43.9 → Near oversold territory, potential accumulation zone.
- MACD negative (-11.0) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 1,350–1,400 ₹.
- Long-Term Holding: Suitable for brand-focused investors, but valuation risks remain.
✅ Positive
- Strong brand presence in consumer durables.
- DII holdings increased by 2.12%, showing strong domestic institutional support.
- Quarterly PAT recovery indicates resilience despite volatility.
⚠️ Limitation
- High P/E and PEG ratios suggest overvaluation.
- ROCE and ROE are moderate compared to industry leaders.
- Profitability remains volatile with sharp swings.
📉 Company Negative News
- FII holdings decreased by 1.85%, showing reduced foreign investor confidence.
- Quarterly profit variation (-44.9%) highlights earnings instability.
📈 Company Positive News
- DII holdings increased by 2.12%, reflecting strong domestic institutional support.
- Quarterly PAT recovery from 7.33 Cr. to 59.7 Cr. shows operational improvement.
- 52-week performance up 61.2%, reflecting investor confidence.
🏭 Industry
- Industry PE at 43.3 suggests sector trades at lower multiples.
- VOLTAS commands premium valuation due to brand strength, but efficiency metrics lag peers.
🔎 Conclusion
VOLTAS demonstrates strong brand presence and resilience, supported by institutional confidence. However, high valuations and volatile profitability raise caution. Entry is favorable near 1,350–1,400 ₹ for long-term investors seeking exposure to consumer durables. While fundamentals are stable, stretched valuations and moderate efficiency metrics limit upside potential, making it a cautious long-term hold.