Voltas Ltd: Still steam left

Voltas Ltd: Still steam left

CMP Rs158, BUY

Target price Rs190, Upside 20%

ä Robust order backlog provides strong visibility

ä Rising industrial capex

ä Margin sustainability will be a key

ä Earnings CAGR of 41.2% over FY07-09E

Voltas remains one of our preferred plays in the engineering sector with strong visibility, rising industrial capex, healthy return ratios and improving margins. At CMP of Rs158 the stock trades at 19.8x FY09E EPS and 16.1x FY09E EV/EBIDTA. We believe that earnings CAGR of 41% over FY07-09E justify current multiples at which it trades. We recommend a BUY with target price of Rs190, representing an upside of 20% from the current levels.

Click below for detailed report on Voltas Ltd.


Warm Regards,

India Infoline Research Team


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