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Last Updated on: 21 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500575 | NSE: VOLTAS

Fundamental Analysis of Voltas Ltd

Basic Stock Data

Last Updated: April 20, 2024, 7:58 am

Market Cap 43,033 Cr.
Current Price 1,301
High / Low1,392/745
Stock P/E153
Book Value 173
Dividend Yield0.33 %
ROCE9.67 %
ROE4.42 %
Face Value 1.00

Data Source: screener.in

Competitors of Voltas Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HPL Electric & Power Ltd 2,099 Cr. 326397/87.051.0 1260.31 %8.85 %3.87 % 10.0
Pulz Electronics Ltd 152 Cr. 140205/49.919.5 23.00.00 %52.4 %38.3 % 10.0
Calcom Vision Ltd 211 Cr. 157205/135106 55.60.00 %13.2 %9.34 % 10.0
Dixon Technologies (India) Ltd 45,968 Cr. 7,6847,986/2,766131 2420.04 %24.2 %22.5 % 2.00
Whirlpool of India Ltd 18,293 Cr. 1,4421,733/1,18690.5 2820.35 %8.43 %6.37 % 10.0
Industry Average13,344.60 Cr1,949.8079.60145.720.14%21.42%16.08%8.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,9952,6521,7851,6891,7942,6672,7681,7682,0062,9573,3602,2932,626
Expenses1,8692,3431,6801,5791,6702,4342,6221,6961,9622,7673,2062,2562,633
Operating Profit126309105110124232146724419015437-8
OPM %6%12%6%7%7%9%5%4%2%6%5%2%-0%
Other Income52327548293727-42-10747707158
Interest3104641347612101114
Depreciation899101098101110111213
Profit before tax16632116814313924716013-802142038524
Tax %22%26%27%27%31%26%32%145%-37%33%36%58%216%
Net Profit12923912210497183110-6-11014312936-28
EPS in Rs3.877.183.683.132.905.523.29-0.22-3.344.353.911.11-0.92

Last Updated: April 10, 2024, 5:20 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 4:52 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5,1865,5315,2665,1835,7206,0336,4047,1247,6587,5567,9349,49911,235
Expenses5,0215,2935,0004,7735,3765,4845,7426,5647,0406,9757,3629,04510,861
Operating Profit165238266411344549663560618580572454374
OPM %3%4%5%8%6%9%10%8%8%8%7%5%3%
Other Income120102121154261212178174179189188-77246
Interest31332323161612332126263048
Depreciation34282528262424243234374046
Profit before tax219280340514563720805677744709697307526
Tax %26%26%28%25%30%28%28%24%30%25%27%56%
Net Profit162207246388393520578514521529506136281
EPS in Rs4.906.287.4211.6211.7015.6417.3015.3515.6315.8715.234.088.45
Dividend Payout %33%25%25%19%22%22%23%26%26%32%36%104%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)27.78%18.84%57.72%1.29%32.32%11.15%-11.07%1.36%1.54%-4.35%-73.12%
Change in YoY Net Profit Growth (%)0.00%-8.94%38.88%-56.43%31.03%-21.16%-22.23%12.43%0.17%-5.88%-68.77%

Growth

Compounded Sales Growth
10 Years:6%
5 Years:8%
3 Years:7%
TTM:22%
Compounded Profit Growth
10 Years:2%
5 Years:-16%
3 Years:-24%
TTM:-20%
Stock Price CAGR
10 Years:23%
5 Years:16%
3 Years:11%
1 Year:55%
Return on Equity
10 Years:12%
5 Years:10%
3 Years:8%
Last Year:4%

Last Updated: April 16, 2024, 6:13 pm

Balance Sheet

Last Updated: April 21, 2024, 11:41 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital33333333333333333333333333
Reserves1,4451,5931,7862,0692,7783,2743,8724,0774,2474,9605,4665,4195,681
Borrowings225262264122271171142315219261361651555
Other Liabilities2,4542,6762,6602,6622,7882,9913,2493,0913,6573,4023,8744,1713,740
Total Liabilities4,1574,5644,7444,8865,8696,4697,2967,5158,1568,6559,73410,27410,010
Fixed Assets289300288269276300297343380388384525527
CWIP5024114162695998150
Investments3124077321,0941,9752,2682,7542,3862,3433,0463,6153,1093,182
Other Assets3,5513,8573,7213,5193,6173,9014,2424,7715,4065,2125,6766,5426,150
Total Assets4,1574,5644,7444,8865,8696,4697,2967,5158,1568,6559,73410,27410,010

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -26784295311219428325-321462556584159
Cash from Investing Activity 13565-285-104-315-73-199393-210-256-365-82
Cash from Financing Activity -27-60-79-23648-211-181-18-294-122-10755
Net Cash Flow-15989-68-29-47143-5553-42179113133

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-60.00-24.002.00289.0073.00378.00521.00245.00399.00319.00211.00-197.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days829093948788899287879784
Inventory Days8086858865786576978410379
Days Payable142151154156156172174165177161182149
Cash Conversion Cycle20252426-4-6-193791814
Working Capital Days484642353836405759605454
ROCE %22%16%17%22%19%22%22%17%18%15%13%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%30.30%
FIIs14.38%17.24%22.31%24.42%26.19%24.67%24.37%21.58%20.58%19.08%17.84%17.18%
DIIs37.22%33.87%31.61%29.76%27.83%29.44%29.43%31.46%33.14%33.63%35.82%37.00%
Government0.24%0.24%0.24%0.21%0.21%0.21%0.21%0.21%0.21%0.21%0.21%0.21%
Public17.86%18.34%15.53%15.32%15.47%15.38%15.69%16.45%15.78%16.78%15.84%15.32%
No. of Shareholders1,50,9951,58,9891,47,9411,56,7881,71,6201,96,5192,24,2182,61,5012,73,0472,99,2702,80,9422,61,009

Shareholding Pattern Chart

No. of Shareholders

Voltas Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan43769361.11428.22
Nippon India Growth Fund36000001.61393.39
Nippon India Multi Cap Fund32389091.38353.93
Axis Midcap Fund22611471.01247.09
Motilal Oswal Midcap Fund22500003.08245.87
Mirae Asset Large Cap Fund24269990.63237.45
Nippon India Small Cap Fund20604410.49225.15
Mirae Asset Focused Fund13821151.46135.22
Kotak Equity Arbitrage Fund - Regular Plan13428000.38131.37
Mirae Asset Midcap Fund12249620.87119.84

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)4.0815.2315.8715.6315.35
Diluted EPS (Rs.)4.0815.2315.8715.6315.35
Cash EPS (Rs.)8.9619.7618.8518.7917.83
Book Value[Excl.RevalReserv]/Share (Rs.)166.07167.40152.04130.49125.29
Book Value[Incl.RevalReserv]/Share (Rs.)166.07167.40152.04130.49125.29
Revenue From Operations / Share (Rs.)287.15239.86228.41231.50215.36
PBDIT / Share (Rs.)22.3926.3225.1027.7324.12
PBIT / Share (Rs.)21.2025.2024.0726.7623.40
PBT / Share (Rs.)12.9324.4123.2824.5822.04
Net Profit / Share (Rs.)7.7718.6317.8317.8317.10
NP After MI And SOA / Share (Rs.)4.0815.2415.8715.6315.35
PBDIT Margin (%)7.7910.9710.9811.9711.20
PBIT Margin (%)7.3810.5010.5311.5610.86
PBT Margin (%)4.5010.1710.1910.6110.23
Net Profit Margin (%)2.707.767.807.707.94
NP After MI And SOA Margin (%)1.426.356.956.757.12
Return on Networth / Equity (%)2.479.1610.5112.0812.35
Return on Capital Employeed (%)12.3814.6415.4520.0018.26
Return On Assets (%)1.315.176.066.346.75
Total Debt / Equity (X)0.110.060.050.050.07
Asset Turnover Ratio (%)0.770.790.790.950.94
Current Ratio (X)1.401.451.481.491.72
Quick Ratio (X)1.051.041.121.101.39
Inventory Turnover Ratio (X)2.252.391.912.443.12
Dividend Payout Ratio (NP) (%)134.7932.9425.2025.5926.05
Dividend Payout Ratio (CP) (%)104.2130.6723.6724.1024.88
Earning Retention Ratio (%)-34.7967.0674.8074.4173.95
Cash Earning Retention Ratio (%)-4.2169.3376.3375.9075.12
Interest Coverage Ratio (X)25.0433.6631.7543.4724.20
Interest Coverage Ratio (Post Tax) (X)17.9224.8223.5531.3818.51
Enterprise Value (Cr.)27016.9540977.6632969.9115786.2920883.58
EV / Net Operating Revenue (X)2.845.164.362.062.93
EV / EBITDA (X)36.4747.0639.7117.2126.17
MarketCap / Net Operating Revenue (X)2.855.194.392.072.93
Retention Ratios (%)-34.7967.0574.7974.4073.94
Price / BV (X)4.967.496.643.705.07
Price / Net Operating Revenue (X)2.855.194.392.072.93
EarningsYield0.000.010.010.030.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1173.79

The stock is overvalued by 9.78% compared to the current price ₹1301

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.75%, which is a positive sign.
  2. The company has higher reserves (3,589.77 cr) compared to borrowings (293.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.54 cr) and profit (546.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 47.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 9.75, 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: 2.70%
      • 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: 12.38% (Industry Average ROCE: 24.67%)
      • 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%: 2.47% (Industry Average ROE: 19.14%)
      • 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): 17.92
      • 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: 1.05
      • 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: 153 (Industry average Stock P/E: 88.2)
      • 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: 0.11
      • 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

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', Dr. Babasaheb Ambedkar Road, Mumbai Maharashtra 400033shareservices@voltas.com
http://www.voltas.com
Management
NamePosition Held
Mr. Noel N TataChairman
Mr. Pradeep BakshiManaging Director & CEO
Mr. V DeshpandeDirector
Mr. D SarangiDirector
Mr. Saurabh AgrawalDirector
Mr. Bahram N VakilDirector
Ms. Anjali BansalDirector
Mr. Arun Kumar AdhikariDirector
Mr. Zubin S DubashDirector

Voltas Ltd. Share Price Update

Share PriceValue
Today₹1,300.45
Previous Day₹1,292.00

FAQ

What is the latest fair value of Voltas Ltd?

The latest fair value of Voltas Ltd is 1173.79.

What is the Market Cap of Voltas Ltd?

The Market Cap of Voltas Ltd is 43,033 Cr..

What is the current Stock Price of Voltas Ltd as on 21 April 2024?

The current stock price of Voltas Ltd as on 21 April 2024 is 1,301.

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

In FY 2024, the High / Low of Voltas Ltd stocks is ₹1,392/745.

What is the Stock P/E of Voltas Ltd?

The Stock P/E of Voltas Ltd is 153.

What is the Book Value of Voltas Ltd?

The Book Value of Voltas Ltd is 173.

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 9.67 %.

What is the ROE of Voltas Ltd?

The ROE of Voltas Ltd is 4.42 %.

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