NSEI:VOLTAS

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 21.93% per year

Pays a reliable dividend of 0.58%

Risk Analysis

No risks detected for VOLTAS from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.7%

VOLTAS

-5.5%

IN Construction

-3.5%

IN Market


1 Year Return

27.4%

VOLTAS

-7.5%

IN Construction

5.2%

IN Market

Return vs Industry: VOLTAS exceeded the Indian Construction industry which returned -3.9% over the past year.

Return vs Market: VOLTAS exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

VOLTASIndustryMarket
7 Day-5.7%-5.5%-3.5%
30 Day-2.7%-10.8%-3.9%
90 Day-2.6%-9.3%-2.1%
1 Year28.3%27.4%-6.3%-7.5%7.2%5.2%
3 Year86.7%83.0%6.0%2.1%18.9%12.4%
5 Year168.1%159.0%-0.7%-6.3%29.4%17.7%

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?

45.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VOLTAS (₹691.7) is trading above our estimate of fair value (₹199.03)

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 (45.9x) compared to the Construction industry average (10.3x).

PE vs Market: VOLTAS is poor value based on its PE Ratio (45.9x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: VOLTAS is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: VOLTAS is overvalued based on its PB Ratio (5.6x) compared to the IN Construction industry average (0.6x).


Next Steps

Future Growth

How is Voltas forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOLTAS's forecast earnings growth (21.9% per year) is above the savings rate (6.5%).

Earnings vs Market: VOLTAS's earnings (21.9% per year) are forecast to grow faster than the Indian market (20.4% 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 (9% 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 (15.7%).


Next Steps

Past Performance

How has Voltas performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOLTAS has high quality earnings.

Growing Profit Margin: VOLTAS's current net profit margins (6.5%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: VOLTAS's earnings have grown by 8.2% 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 (-11.2%) over the past year, making it difficult to compare to the Construction industry average (4.8%).


Return on Equity

High ROE: VOLTAS's Return on Equity (12.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Voltas's financial position?


Financial Position Analysis

Short Term Liabilities: VOLTAS's short term assets (₹54.1B) exceed its short term liabilities (₹29.2B).

Long Term Liabilities: VOLTAS's short term assets (₹54.1B) exceed its long term liabilities (₹1.1B).


Debt to Equity History and Analysis

Debt Level: VOLTAS's debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: VOLTAS's debt to equity ratio has reduced from 10.1% to 8% over the past 5 years.

Debt Coverage: VOLTAS's debt is well covered by operating cash flow (163%).

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


Balance Sheet

Inventory Level: VOLTAS has a low level of unsold assets or inventory.

Debt Coverage by Assets: VOLTAS's debt is covered by short term assets (assets are 16.4x debt).


Next Steps

Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%0.6%markettop25%2.7%industryaverage1.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: VOLTAS's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: VOLTAS's dividend (0.58%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


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 (26.6%), 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 (24.4% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Pradeep Bakshi (57yo)

2yrs

Tenure

₹51,710,000

Compensation

Mr. Pradeep Kumar Bakshi, B.Sc., D. M. M., was Managing Director and Chief Executive Officer at Voltas Ltd from January 10, 2018 to August 31, 2018. Mr. Bakshi served as the Chief Operating Officer of Unit ...


CEO Compensation Analysis

Compensation vs Market: Pradeep's total compensation ($USD719.96K) is about average for companies of similar size in the Indian market ($USD754.76K).

Compensation vs Earnings: Pradeep's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pradeep Bakshi
CEO, MD & Executive Director2yrs₹51.71mno data
Anil George
Deputy MD2.4yrs₹45.38m0.00030% 698.4k
Varun Malhotra
VP of Taxation & Legal0yrs₹13.95m0.00076% 1.8m
Kalyanaraman Visweswaran
VP & Operations Director of International Operations Business Group0yrs₹3.47mno data
Asawari Sathaye
Senior Manager - Corporate Communications and Investor Relations0yrsno datano data
B. Garudachar
Senior General Manager of Corporate Communications Department0yrsno datano data
Narendren Nair
Chief Human Resources Officer & Executive VP4.3yrsno datano data
Prabhuajgaonkar Balkrishna
CFO of Projects & VP of Finance0yrsno datano data
M. Krishna
COO of Domestic Projects Group & Executive VP0yrsno datano data
Utsav Shah
Chief Financial Officer of Corporate Finance and Senior General Manager of Property Development Cell0yrs₹3.15mno data

2.0yrs

Average Tenure

60yo

Average Age

Experienced Management: VOLTAS's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pradeep Bakshi
CEO, MD & Executive Director2yrs₹51.71mno data
Anil George
Deputy MD2.4yrs₹45.38m0.00030% 698.4k
Arun Adhikari
Independent Non-Executive Director2.7yrs₹20.38mno data
Noel Tata
Non-Executive Director17.1yrs₹450.00kno data
Pradeep Dhume
Chairman of Rohini Industrial Electricals Limited0yrsno datano data
Vinayak Deshpande
Non Independent Non Executive Director7.5yrs₹300.00kno data
Anjali Bansal
Non-Executive Independent Director4.9yrs₹2.61mno data
Bahram Vakil
Independent Non-Executive Director5.4yrs₹3.22mno data
Debendranath Sarangi
Independent Non-Executive Director5.4yrs₹3.31mno data
Hemant Bhargava
Not Independent Non-Executive Director2.8yrs₹590.00kno data

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: VOLTAS's board of directors are considered experienced (4.9 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: ₹232.811b
  • 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 Commercial Use; Electro-Mechanical Projects and Services; and Engineering Products and Services. The company manufactures, sells, and services cooling appliances and cold storage products, such as air conditioners, air coolers, and commercial refrigeration products, including freezers, visi coolers, and water dispensers, and others. It also undertakes electrical projects; heating, ventilation, and air conditioning projects; and plumbing, fire fighting, extra low voltage, and specialized projects. In addition, the company provides facilities maintenance and hard services, such as operations and maintenance contracts in various sectors, AMCs, retrofits and energy management, etc. Further, it engages in the provision of water treatment solutions for industrial, oil and gas, and domestic sewage segments; sale and service of capital machinery for textile industry; sale of spares and accessories for textile equipment; and sale of mining and construction equipment. Additionally, the company manufactures ducts and duct accessories; undertakes engineering, procurement, and construction projects. It also engages in the drilling, irrigation, and landscaping activities; and construction of water treatment plants. Voltas Limited was founded in 1954 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:58
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.