Hold Voltas, Good returns expected!

Equity Advisors are of the view that one can definitely hold on to Voltas for good returns. In the first quarter, the company will be in a position to show good numbers.

Fundamentally, Voltas is looking quite strong because after the stock split though the stock has become less attractive on fundamentals front in terms of reduced EPS and increased PE multiple. But after the Q4 results that the company has declared it could show tremendous amount of growth rate in its fundamentals and that is a reason that the PE multiple has become attractive now.

Particularly the engineering contracts that it has bagged and the way it got good pipeline from the engineering contract side and between January and April this year it also got good amount of orders which has shown a 30% growth in its room air conditioners business.

All put together company could show good numbers and we feel even this Q1 also company will be in a position to show good numbers. Put together company could come quite very well on a part of improving its numbers irrespective of increased number of shares that make us feel that one can definitely hold on to this stock for good returns.

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