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INVESTMENT INSIGHTS

Check Before You Invest : Voltas Ltd

BSE: 500575 NSE: VOLTAS ISIN: INE226A01021
  |   Sector:  Consumer Durables   |   Industry:  Air Conditioners

Snapshot

Q.1 Which industry/sub-sector does Voltas Ltd belong to?
Voltas Ltd belongs to the Consumer Durables sector, operating specifically within the Air Conditioners segment.
Q.2 Is Voltas Ltd a good quality company?
Voltas Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Voltas Ltd undervalued or overvalued?
Voltas Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Voltas Ltd a good buy now?
Voltas Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Voltas Ltd?
Voltas Ltd revenue growth is 23.5% for FY-2025 , which is above its 5 year CAGR of 15% , indicating faster growth.
Q.2 Gross Profit margin of Voltas Ltd?
Voltas Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.9% for FY-2025 , which is in line with its 5 year median of 8.9% , indicating stable margins.
Q.3 Operating Profit Margin of Voltas Ltd?
Voltas Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.33% for FY-2025 , which is in line with its 5 year median of 7.33% indicating stable margins.
Q.4 Net Profit Margin of Voltas Ltd?
Voltas Ltd Net Profit Margin is 5.41% for FY-2025 , is in line with with its 5 year median of 5.41%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 8.9 8.9
Operating Profit Margin 7.33 7.33
Net Profit Margin 5.41 5.41
Q.5 Return on Asset of Voltas Ltd?
Voltas Ltd Return on Asset is 6.65(x), which is above its 5 year historical median of 5.53(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Voltas Ltd?
Voltas Ltd Return on equity is 13.53% for FY-2025 , which is above its historical median of 9.64%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Voltas Ltd?
Voltas Ltd Return on capital employed is 18.01% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Voltas Ltd?
Voltas Ltd Cash conversion cycle is 14 , above its historical median of 14 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.23 0.95
ROE 13.53 9.64
ROCE 18.01 13.01
Cash Conversion Cycle 14 14
Q.9 Debt to Equity ratio of Voltas Ltd?
Voltas Ltd Debt-to-Equity ratio is 0.13 , which is above with the industry average of 0.06 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Voltas Ltd?
Voltas Ltd Debt to cash flow from operations is -3.85 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Voltas Ltd?
Promoters hold 30.30% of the Voltas Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Voltas Ltd vs industry peers?
Voltas Ltd revenue CAGR is 15.01% , compared to the industry median CAGR of 7.51% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 15,412.8 3,676.6
Gross Profit 1,371.8 205.9
Operating Profit 1,116 221
Net Profit 834 183.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.23 0.48
ROE 13.53 4.82
ROCE 18.01 6.51
Cash Conversion Cycle 13.74 7

Valuation & price assessment

Q.1 Stock return of Voltas Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 17% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 17% 7.3% 18.3% 6%
Q.3 Valuation ratios of Voltas Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 86.91 50.06 93.54
Price to Book 6.71 4.96 7.23
Price to Sales 3.11 3.47 2.29
EV to EBITDA 43.26 30.12 35.10

Check more companies

1. LG Electronics India
2. Dixon Technologies
3. Kalyan Jewell.India
4. Voltas
5. Blue Star
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