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F&O: Here's a 'Bear Spread' for Nifty MidCap as it drops below 5, 20-DEMA

F&O: Here's a 'Bear Spread' for Nifty MidCap as it drops below 5, 20-DEMA

Analyst at HDFC Securities have recommended a 'Bear Spread' Strategy on the Nifty MidCap index as it has broken down from the upward sloping trendline, suggesting a weak outlook
Nandish Shah Mumbai

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Buy Voltas, target price Rs 1,420:  HDFC Securities
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Time of India

timea day ago

  • Time of India

Buy Voltas, target price Rs 1,420: HDFC Securities

HDFC Securities maintains buy call on Voltas with a revised target price of Rs 1,420. The current market price of Voltas Ltd. is Rs 1295. Voltas, incorporated in 1954, is a Large Cap company with a market cap of Rs 42,733.76 crore, operating in Consumer Durables sector. Voltas' key products/revenue segments include Electrical Goods, Sale of services, Contract Revenue, Other Operating Revenue and Scrap for the year ending 31-Mar-2024. Financial Performance For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 4,847.25 crore, up 53.19% from last quarter Total Income of Rs 3,164.16 crore and up 13.86% from last year same quarter Total Income of Rs 4,257.30 crore. The company has reported net profit after tax of Rs 267.66 crore in latest quarter. The company's top management includes N Tata, Bakshi, Bansal, Kumar Adhikari, N Vakil, Sarangi, Tulsidas Merchant, Menon, Agrawal, Deshpande, S Dubash, P Verma, Mr.V P Malhotra. Company has S R B C & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 33.09 Crore shares outstanding. Live Events Investment Rationale HDFC Securities anticipates a weak Q1FY26 for the company due to weak demand and a high base effect. They expect growth to rebound in Q2FY26. Furthermore, and project healthy growth in Q3FY26, as RAC prices are likely to increase from January 2026, driven by new rating change regulations. Considering the weak demand during the peak Q1 season, they have revised our revenue estimates downward by 10% for FY26 and 5% for FY27. Similarly, APAT estimates have been cut by 11% for FY26 and 7% for FY27. The brokerage now models a CAGR of 10% for revenue, 15% for EBITDA, and 17% for APAT over FY25-27E. HDFC Securities values Voltas UPC business at 40x EPS Mar-27E and the EMPS and Engineering Products and Services (EPS) business at 20x EPS Mar-27E each; the loss-making Beko is valued at 2x FY27 sales, translating into ~40x Mar-27E EPS. The brokerage maintains BUY on Voltas with a lower target price of Rs 1,420/share.

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