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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Voltas Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:18 pm

Market Cap 54,999 Cr.
Current Price 1,653
High / Low1,946/811
Stock P/E100.0
Book Value 190
Dividend Yield0.33 %
ROCE8.51 %
ROE4.40 %
Face Value 1.00
PEG Ratio-36.46

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Voltas Ltd

Competitors of Voltas Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IKIO Lighting Ltd 1,955 Cr. 253364/24536.4 71.20.39 %21.7 %17.5 % 10.0
Elin Electronics Ltd 1,001 Cr. 202282/12959.3 1040.00 %5.08 %2.75 % 5.00
CWD Ltd 222 Cr. 6161,144/590121 58.70.00 %7.92 %4.56 % 10.0
Calcom Vision Ltd 157 Cr. 116184/104201 56.50.00 %6.43 %1.83 % 10.0
Whirlpool of India Ltd 22,342 Cr. 1,7652,450/1,18671.1 2980.28 %9.07 %6.36 % 10.0
Industry Average22,371.08 Cr1,823.2580.02122.400.21%16.36%14.07%6.31

All Competitor Stocks of Voltas Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,7851,6891,7942,6672,7681,7682,0062,9573,3602,2932,6264,2034,921
Expenses1,6801,5791,6702,4342,6221,6961,9622,7673,2062,2562,6334,0514,527
Operating Profit105110124232146724419015437-8152394
OPM %6%7%7%9%5%4%2%6%5%2%-0%4%8%
Other Income7548293727-42-107477071585480
Interest46413476121011142110
Depreciation91010981011101112131213
Profit before tax16814313924716013-802142038524174452
Tax %27%27%31%26%32%145%37%33%36%58%216%36%26%
Net Profit12210497183110-6-11014312936-28111335
EPS in Rs3.683.132.905.523.29-0.22-3.344.353.911.11-0.923.5210.10

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5,5315,2665,1835,7206,0336,4047,1247,6587,5567,9349,49912,48114,042
Expenses5,2935,0004,7735,3765,4845,7426,5647,0406,9757,3629,04512,14513,466
Operating Profit238266411344549663560618580572454336576
OPM %4%5%8%6%9%10%8%8%8%7%5%3%4%
Other Income102121154261212178174179189188-77253264
Interest33232316161233212626305656
Depreciation28252826242424323437404850
Profit before tax280340514563720805677744709697307486734
Tax %26%28%25%30%28%28%24%30%25%27%56%49%
Net Profit207246388393520578514521529506136248454
EPS in Rs6.287.4211.6211.7015.6417.3015.3515.6315.8715.234.087.6213.81
Dividend Payout %25%25%19%22%22%23%26%26%32%36%110%72%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)18.84%57.72%1.29%32.32%11.15%-11.07%1.36%1.54%-4.35%-73.12%82.35%
Change in YoY Net Profit Growth (%)0.00%38.88%-56.43%31.03%-21.16%-22.23%12.43%0.17%-5.88%-68.77%155.48%

Voltas Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:12%
3 Years:18%
TTM:35%
Compounded Profit Growth
10 Years:1%
5 Years:-14%
3 Years:-22%
TTM:80%
Stock Price CAGR
10 Years:20%
5 Years:19%
3 Years:11%
1 Year:100%
Return on Equity
10 Years:11%
5 Years:8%
3 Years:6%
Last Year:4%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33333333333333333333333333
Reserves1,5931,7862,0692,7783,2743,8724,0774,2474,9605,4665,4195,7876,246
Borrowings262264122271171142315219261361651744871
Other Liabilities2,6762,6602,6622,7882,9913,2493,0913,6573,4023,8744,1715,4304,694
Total Liabilities4,5644,7444,8865,8696,4697,2967,5158,1568,6559,73410,27411,99411,843
Fixed Assets300288269276300297343380388384525548824
CWIP024114162695998368193
Investments4077321,0941,9752,2682,7542,3862,3433,0463,6153,1093,5083,646
Other Assets3,8573,7213,5193,6173,9014,2424,7715,4065,2125,6766,5427,5717,180
Total Assets4,5644,7444,8865,8696,4697,2967,5158,1568,6559,73410,27411,99411,843

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +84295311219428325-321462556584159762
Cash from Investing Activity +65-285-104-315-73-199393-210-256-365-82-522
Cash from Financing Activity +-60-79-23648-211-181-18-294-122-10755-116
Net Cash Flow89-68-29-47143-5553-42179113133123

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-24.002.00289.0073.00378.00521.00245.00399.00319.00211.00-197.00-408.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days909394878889928787978474
Inventory Days8685886578657697841037979
Days Payable151154156156172174165177161182149143
Cash Conversion Cycle252426-4-6-19379181410
Working Capital Days464235383640575960545432
ROCE %16%17%22%19%22%22%17%18%15%13%10%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%
FIIs22.31%24.42%26.19%24.67%24.37%21.58%20.58%19.08%17.84%17.18%14.71%15.08%
DIIs31.61%29.76%27.83%29.44%29.43%31.46%33.14%33.63%35.82%37.00%40.36%40.19%
Government0.24%0.21%0.21%0.21%0.21%0.21%0.21%0.21%0.21%0.21%0.21%0.21%
Public15.53%15.32%15.47%15.38%15.69%16.45%15.78%16.78%15.84%15.32%14.41%14.22%
No. of Shareholders1,47,9411,56,7881,71,6201,96,5192,24,2182,61,5012,73,0472,99,2702,80,9422,61,0092,41,7942,47,775

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan4,776,9361.43703.262,503,0802024-11-2190.84%
Nippon India Growth Fund4,600,0002.2677.212,503,0802024-11-2183.77%
SBI Magnum Midcap Fund4,000,0002.9588.882,503,0802024-11-2159.8%
SBI Large & Midcap Fund3,800,0002.18559.442,503,0802024-11-2151.81%
Motilal Oswal Midcap Fund3,000,0003.5441.662,503,0802024-11-2119.85%
Nippon India Multi Cap Fund3,000,0001.26441.662,503,0802024-11-2119.85%
Nippon India Small Cap Fund2,503,0800.65368.52,503,0802024-11-210%
DSP Mid Cap Fund2,482,5591.91365.482,503,0802024-11-21-0.82%
Axis Midcap Fund2,435,2951.19358.522,503,0802024-11-21-2.71%
Kotak Equity Opportunities Fund - Regular Plan2,000,0001.22294.442,503,0802024-11-21-20.1%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)7.624.0815.2315.8715.63
Diluted EPS (Rs.)7.624.0815.2315.8715.63
Cash EPS (Rs.)13.138.9619.7618.8518.79
Book Value[Excl.RevalReserv]/Share (Rs.)176.97166.07167.40152.04130.49
Book Value[Incl.RevalReserv]/Share (Rs.)176.97166.07167.40152.04130.49
Revenue From Operations / Share (Rs.)377.30287.15239.86228.41231.50
PBDIT / Share (Rs.)22.0022.3926.3225.1027.73
PBIT / Share (Rs.)20.5621.2025.2024.0726.76
PBT / Share (Rs.)18.8812.9324.4123.2824.58
Net Profit / Share (Rs.)11.697.7718.6317.8317.83
NP After MI And SOA / Share (Rs.)7.624.0815.2415.8715.63
PBDIT Margin (%)5.837.7910.9710.9811.97
PBIT Margin (%)5.457.3810.5010.5311.56
PBT Margin (%)5.004.5010.1710.1910.61
Net Profit Margin (%)3.092.707.767.807.70
NP After MI And SOA Margin (%)2.011.426.356.956.75
Return on Networth / Equity (%)4.322.479.1610.5112.08
Return on Capital Employeed (%)10.8312.3814.6415.4520.00
Return On Assets (%)2.091.315.176.066.34
Long Term Debt / Equity (X)0.030.000.000.000.00
Total Debt / Equity (X)0.120.110.060.050.05
Asset Turnover Ratio (%)1.120.770.790.790.95
Current Ratio (X)1.341.401.451.481.49
Quick Ratio (X)0.971.051.041.121.10
Inventory Turnover Ratio (X)3.642.252.391.912.44
Dividend Payout Ratio (NP) (%)55.80134.7932.9425.2025.59
Dividend Payout Ratio (CP) (%)46.94104.2130.6723.6724.10
Earning Retention Ratio (%)44.20-34.7967.0674.8074.41
Cash Earning Retention Ratio (%)53.06-4.2169.3376.3375.90
Interest Coverage Ratio (X)13.0325.0433.6631.7543.47
Interest Coverage Ratio (Post Tax) (X)7.9217.9224.8223.5531.38
Enterprise Value (Cr.)36400.1327016.9540977.6632969.9115786.29
EV / Net Operating Revenue (X)2.922.845.164.362.06
EV / EBITDA (X)50.0136.4747.0639.7117.21
MarketCap / Net Operating Revenue (X)2.922.855.194.392.07
Retention Ratios (%)44.19-34.7967.0574.7974.40
Price / BV (X)6.274.967.496.643.70
Price / Net Operating Revenue (X)2.922.855.194.392.07
EarningsYield0.010.000.010.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Voltas Ltd as of November 24, 2024 is: 838.76

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Voltas Ltd is Overvalued by 49.26% compared to the current share price 1,653.00

Intrinsic Value of Voltas Ltd as of November 24, 2024 is: 815.76

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Voltas Ltd is Overvalued by 50.65% compared to the current share price 1,653.00

Last 5 Year EPS CAGR: -2.74%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.67%, which is a positive sign.
  2. The company has higher reserves (3,967.23 cr) compared to borrowings (358.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (7.31 cr) and profit (582.77 cr) over the years.
  1. The stock has a high average Working Capital Days of 46.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 8.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Voltas Ltd:
    1. Net Profit Margin: 3.09%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.83% (Industry Average ROCE: 16.36%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 4.32% (Industry Average ROE: 14.07%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.92
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.97
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 100 (Industry average Stock P/E: 73.86)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.12
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Voltas Ltd. is a Public Limited Listed company incorporated on 06/09/1954 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29308MH1954PLC009371 and registration number is 009371. Currently Company is involved in the business activities of Manufacture of refrigerating or freezing equipment f industrial use, including assemblies of major components. Company’s Total Operating Revenue is Rs. 7098.60 Cr. and Equity Capital is Rs. 33.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Consumer ElectronicsVoltas House `A', Mumbai Maharashtra 400033shareservices@voltas.com
http://www.voltas.com
Management
NamePosition Held
Mr. Noel N TataChairman
Mr. Pradeep BakshiManaging Director & CEO
Mr. Vinayak DeshpandeDirector
Mr. Debendranath SarangiDirector
Mr. Saurabh AgrawalDirector
Mr. Bahram N VakilDirector
Ms. Anjali BansalDirector
Mr. Arun Kumar AdhikariDirector
Mr. Zubin S DubashDirector
Mr. Mukundan MenonDirector
Mr. Jayesh Tulsidas MerchantDirector

FAQ

What is the latest intrinsic value of Voltas Ltd?

The latest intrinsic value of Voltas Ltd as on 24 November 2024 is ₹838.76, which is 49.26% lower than the current market price of ₹1,653.00.

What is the Market Cap of Voltas Ltd?

The Market Cap of Voltas Ltd is 54,999 Cr..

What is the current Stock Price of Voltas Ltd as on 24 November 2024?

The current stock price of Voltas Ltd as on 24 November 2024 is 1,653.

What is the High / Low of Voltas Ltd stocks in FY 2024?

In FY 2024, the High / Low of Voltas Ltd stocks is 1,946/811.

What is the Stock P/E of Voltas Ltd?

The Stock P/E of Voltas Ltd is 100.0.

What is the Book Value of Voltas Ltd?

The Book Value of Voltas Ltd is 190.

What is the Dividend Yield of Voltas Ltd?

The Dividend Yield of Voltas Ltd is 0.33 %.

What is the ROCE of Voltas Ltd?

The ROCE of Voltas Ltd is 8.51 %.

What is the ROE of Voltas Ltd?

The ROE of Voltas Ltd is 4.40 %.

What is the Face Value of Voltas Ltd?

The Face Value of Voltas Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Voltas Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE