NSEI:VOLTAS

Stock Analysis Report

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Market Cap

₹341.1b

Last Updated

2021/06/24 12:08 UTC

Data Sources

Company Financials +

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 20.08% per year

Earnings grew by 1.5% over the past year

Pays a reliable dividend of 0.49%

Risk Analysis

No risks detected for VOLTAS from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record 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

-0.6%

VOLTAS

-0.3%

IN Construction

-0.5%

IN Market


1 Year Return

85.4%

VOLTAS

61.8%

IN Construction

59.4%

IN Market

Return vs Industry: VOLTAS exceeded the Indian Construction industry which returned 61.5% over the past year.

Return vs Market: VOLTAS exceeded the Indian Market which returned 58.5% over the past year.


Shareholder returns

VOLTASIndustryMarket
7 Day-0.6%-0.3%-0.5%
30 Day3.6%4.0%4.4%
90 Day4.5%9.9%14.5%
1 Year86.6%85.4%65.5%61.8%61.8%59.4%
3 Year104.2%100.1%15.4%9.7%44.1%37.0%
5 Year228.7%217.6%51.2%40.4%93.2%78.7%

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?

64.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VOLTAS (₹1020.2) is trading above our estimate of fair value (₹175.22)

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 (64.3x) compared to the Indian Construction industry average (19.1x).

PE vs Market: VOLTAS is poor value based on its PE Ratio (64.3x) compared to the Indian market (21.8x).


Price to Earnings Growth Ratio

PEG Ratio: VOLTAS is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: VOLTAS is overvalued based on its PB Ratio (6.8x) compared to the IN Construction industry average (0.9x).


Future Growth

How is Voltas forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOLTAS's forecast earnings growth (20.1% per year) is above the savings rate (6.8%).

Earnings vs Market: VOLTAS's earnings (20.1% per year) are forecast to grow slower than the Indian market (21% per year).

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

Revenue vs Market: VOLTAS's revenue (13.9% per year) is forecast to grow faster than the Indian market (12.6% per year).

High Growth Revenue: VOLTAS's revenue (13.9% 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 (15.2%).


Past Performance

How has Voltas performed over the past 5 years?

0.05%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOLTAS has high quality earnings.

Growing Profit Margin: VOLTAS's current net profit margins (7%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: VOLTAS's earnings have grown by 0.05% per year over the past 5 years.

Accelerating Growth: VOLTAS's earnings growth over the past year (1.5%) exceeds its 5-year average (0.05% per year).

Earnings vs Industry: VOLTAS earnings growth over the past year (1.5%) exceeded the Construction industry -25.5%.


Return on Equity

High ROE: VOLTAS's Return on Equity (10.5%) is considered low.


Financial Health

How is Voltas's financial position?


Financial Position Analysis

Short Term Liabilities: VOLTAS's short term assets (₹51.9B) exceed its short term liabilities (₹35.0B).

Long Term Liabilities: VOLTAS's short term assets (₹51.9B) exceed its long term liabilities (₹1.2B).


Debt to Equity History and Analysis

Debt Level: VOLTAS's debt to equity ratio (5%) is considered satisfactory.

Reducing Debt: VOLTAS's debt to equity ratio has reduced from 9.6% to 5% over the past 5 years.

Debt Coverage: VOLTAS's debt is well covered by operating cash flow (221.1%).

Interest Coverage: VOLTAS's interest payments on its debt are well covered by EBIT (23.2x coverage).


Balance Sheet


Dividend

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

0.49%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 24 2021Ex Dividend DateAug 11 2021Dividend Pay DateSep 26 202146 days from Ex DividendBuy in the next 47 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: VOLTAS's dividend (0.49%) is higher than the bottom 25% of dividend payers in the Indian market (0.37%).

High Dividend: VOLTAS's dividend (0.49%) is low compared to the top 25% of dividend payers in the Indian market (1.55%).


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 (31.5%), 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 (34.9% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Pradeep Bakshi (58 yo)

3.33yrs

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 ($USD368.20K) is below average for companies of similar size in the Indian market ($USD618.95K).

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


Leadership Team

Experienced Management: VOLTAS's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: VOLTAS's board of directors are considered experienced (4 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: ₹341.059b
  • Shares outstanding: 330.88m
  • Website: https://www.voltas.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/24 12:08
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.