NSEI:VOLTAS

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Executive Summary

Voltas Limited operates as an air conditioning and engineering company primarily in India, the Middle East, and Singapore. More Details

Rewards

Earnings are forecast to grow 26.86% per year

Risk Analysis

No risks detected for VOLTAS from our risk checks.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Voltas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VOLTAS is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VOLTAS's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

VOLTAS

0.4%

IN Construction

0.8%

IN Market


1 Year Return

15.2%

VOLTAS

-13.1%

IN Construction

8.3%

IN Market

Return vs Industry: VOLTAS exceeded the Indian Construction industry which returned -13.1% over the past year.

Return vs Market: VOLTAS exceeded the Indian Market which returned 8.3% over the past year.


Shareholder returns

VOLTASIndustryMarket
7 Day2.1%0.4%0.8%
30 Day12.6%17.2%10.8%
90 Day23.7%13.3%12.3%
1 Year16.0%15.2%-10.5%-13.1%10.4%8.3%
3 Year30.6%27.9%-23.6%-27.3%8.3%3.0%
5 Year181.6%172.1%13.2%5.2%55.5%43.8%

Long-Term Price Volatility Vs. Market

How volatile is Voltas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Voltas undervalued compared to its fair value and its price relative to the market?

64.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VOLTAS (₹794.5) is trading above our estimate of fair value (₹109.47)

Significantly Below Fair Value: VOLTAS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VOLTAS is poor value based on its PE Ratio (64.9x) compared to the IN Construction industry average (13.1x).

PE vs Market: VOLTAS is poor value based on its PE Ratio (64.9x) compared to the Indian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: VOLTAS is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: VOLTAS is overvalued based on its PB Ratio (6x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

How is Voltas forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOLTAS's forecast earnings growth (26.9% per year) is above the savings rate (7.2%).

Earnings vs Market: VOLTAS's earnings (26.9% per year) are forecast to grow faster than the Indian market (24.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VOLTAS's revenue (17.1% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: VOLTAS's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VOLTAS's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Voltas performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOLTAS has high quality earnings.

Growing Profit Margin: VOLTAS's current net profit margins (6.2%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: VOLTAS's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: VOLTAS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VOLTAS had negative earnings growth (-17.7%) over the past year, making it difficult to compare to the Construction industry average (-20.2%).


Return on Equity

High ROE: VOLTAS's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Voltas's financial position?


Financial Position Analysis

Short Term Liabilities: VOLTAS's short term assets (₹47.7B) exceed its short term liabilities (₹29.3B).

Long Term Liabilities: VOLTAS's short term assets (₹47.7B) exceed its long term liabilities (₹1.3B).


Debt to Equity History and Analysis

Debt Level: VOLTAS's debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: VOLTAS's debt to equity ratio has increased from 7.5% to 9.5% over the past 5 years.

Debt Coverage: VOLTAS's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: VOLTAS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Voltas's current dividend yield, its reliability and sustainability?

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VOLTAS's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.52%).

High Dividend: VOLTAS's dividend (0.5%) is low compared to the top 25% of dividend payers in the Indian market (2.1%).


Stability and Growth of Payments

Stable Dividend: VOLTAS's dividends per share have been stable in the past 10 years.

Growing Dividend: VOLTAS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), VOLTAS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VOLTAS's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Pradeep Bakshi (58 yo)

2.75yrs

Tenure

₹27,320,000

Compensation

Mr. Pradeep Kumar Bakshi, B.Sc., D. M. M., serves as the Managing Director, Chief Executive Officer and the Executive Director at Voltas Limited. He was Managing Director and Chief Executive Officer at Vol...


CEO Compensation Analysis

Compensation vs Market: Pradeep's total compensation ($USD369.06K) is below average for companies of similar size in the Indian market ($USD748.38K).

Compensation vs Earnings: Pradeep's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pradeep Bakshi
CEO, MD & Executive Director2.75yrs₹27.32mno data
Anil George
CFO & Director3.17yrs₹21.83m0.00030%
₹ 800.7k
Varun Malhotra
VP of Taxation & Legalno data₹15.25m0.00076%
₹ 2.0m
Kalyanaraman Visweswaran
VP & Operations Director of International Operations Business Groupno data₹3.47mno data
Manish Desai
Head of Corporate Financeno datano datano data
Asawari Sathaye
Senior Manager - Corporate Communications and Investor Relationsno datano datano data
B. Garudachar
Senior General Manager of Corporate Communications Departmentno datano datano data
Narendren Nair
Chief Human Resources Officer & Executive VP5.08yrsno datano data
Prabhuajgaonkar Balkrishna
CFO of Projects & VP of Financeno datano datano data
M. Krishna
COO of Domestic Projects Group & Executive VPno datano datano data
Utsav Shah
Chief Financial Officer of Corporate Finance and Senior General Manager of Property Development Cellno data₹3.15mno data
Dinesh Singh
VP & Chief Strategy Officer of Corporate Planning5.25yrsno datano data

3.9yrs

Average Tenure

60yo

Average Age

Experienced Management: VOLTAS's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pradeep Bakshi
CEO, MD & Executive Director2.75yrs₹27.32mno data
Anil George
CFO & Director3.17yrs₹21.83m0.00030%
₹ 800.7k
Arun Adhikari
Independent Non-Executive Director3.42yrs₹540.00kno data
Zubin Dubash
Independent Director1.25yrs₹360.00k0.00048%
₹ 1.3m
Noel Tata
Non Independent Non-Executive Chairman3.17yrs₹510.00kno data
Pradeep Dhume
Chairman of Rohini Industrial Electricals Limitedno datano datano data
Vinayak Deshpande
Non Independent Non Executive Director8.25yrs₹270.00kno data
Anjali Bansal
Non-Executive Independent Director5.67yrs₹525.00kno data
Bahram Vakil
Independent Non-Executive Director6.17yrs₹495.00kno data
Debendranath Sarangi
Independent Non-Executive Director6.17yrs₹540.00kno data
Hemant Bhargava
Non Independent Non-Executive Director3.5yrs₹210.00kno data

3.5yrs

Average Tenure

63yo

Average Age

Experienced Board: VOLTAS's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Voltas Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Voltas Limited
  • Ticker: VOLTAS
  • Exchange: NSEI
  • Founded: 1954
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹266.892b
  • Shares outstanding: 330.88m
  • Website: https://www.voltas.com

Number of Employees


Location

  • Voltas Limited
  • Voltas House
  • A Block
  • Mumbai
  • Maharashtra
  • 400033
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500575BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 1995
VOLTASNSEI (National Stock Exchange of India)YesEquity SharesININRApr 1995

Biography

Voltas Limited operates as an air conditioning and engineering company primarily in India, the Middle East, and Singapore. It operates through three segments: Unitary Cooling Products for Comfort and Comme...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 12:09
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.