Voltas is an Indian company, headquartered in Mumbai, that primarily produces and sells devices for air conditioning and refrigeration. The company has interests in various other industries like textiles and mining.Market Capitalisation
As of 3 August, 2018, the market capitalisation of Voltas is approximately Rs.19,231 crore.
Voltas’ Wealth and Recent Performance
From the results released by the company for the quarter ending March 2018, the following can be observed:
- Total income from operations rose to Rs.1,862.99 crore from Rs.1,225.03 crore the previous quarter. While this was a good increase taking into account the previous quarter, it was a decrease from the total income recorded for the quarter ending March 2017 when it was Rs.1,907.01 crore.
- The net profit recorded was Rs.177.21 crore which was a solid increase from the previous quarter during which time the net profit stood at Rs.70.09 crore. In March 2017, the net profit recorded was Rs.151.91 crore.
- With regard to expenditure, the expense incurred by the company for consumption of materials, costs of jobs and services reduced to Rs.428.77 crore from Rs.488.10 crore in the previous quarter. The value of the same was Rs.584.50 in March 2017.
- Employee benefits expenses remained mostly steady at Rs.105.64 crore compared to the previous quarter at Rs.105.91 crore. In March 2017, employee benefits expenses were Rs.107.39 crore.
Voltas’ Stock Trends in 2018
Looking at the stock trends of the company from January to July 2018, it can be observed that in January 2018, the stock opened at about Rs.648. The stock closed at about Rs.567 by the end of July 2018.
- While the stock opened at a price of about Rs.648 for the month of January 2018, it experienced a decline in prices throughout the duration of the month. The stock closed at about Rs.605 by the end of the month.
- In February, the stock appeared to gain a little opening at about Rs.607. But this was followed by a steep decline in prices with the stock reaching a low of about Rs.557 during the course of the month. However, the stock recovered strongly after that and closed for the month at about Rs.609.
- The stock gained about Rs.10 in the beginning of March 2018 to open at about Rs.619. Until mid-month, the stock continued to gain in price, reaching a high of about Rs.640. But the stock later dipped to close for the month at about Rs.620.
- In the beginning of April 2018, the stock gained about Rs.18 to open at around Rs.638. While the stock did dip, it recovered strongly and remained over the Rs.630 mark for most of the month. It closed at about Rs.642 for the month.
- May 2018 marked a period of decline for the stock price with the lowest price being about Rs.531. The stock gained slightly to close for the month at about Rs.539.
- The stock declined further in June 2018 and closed for the month at about Rs.523.
- Compared to June, the stock price saw a period of gain in July, with the stock rising for most of the month. The stock closed at about Rs.567 by the end of the month.
Voltas’ Stock Trends in 2016 and 2017
On the whole, in the year 2016, the stock opened at about Rs.319 for the month of January and closed at about Rs.328 by the end of December.
- While the stock opened at about Rs.319 in January 2016, it experienced a decline in prices throughout the month. This led to the stock closing at about Rs.286 at the end of the month. February too marked a period of decline in stock price with the stock going below the Rs.250 mark. The stock closed for the month at about Rs.223. In March 2016, gained a lot to close for the month at about Rs.278.
- In April, the stock mostly gained and closed for the month at about Rs.293, higher than the price at which it closed for the month of March. In May, the stock gained even more, breaching the Rs.300 mark again for the first time since the initial dip in January. The stock closed for the month at about Rs.335. June marked a period of decline with the stock closing at about Rs.322 at the end of the month.
- July 2016 marked a period of tremendous growth with the stock closing at about Rs.349 at the end of the month. A final 260% dividend was announced on 5 August 2016. The stock gained throughout the month, closing at a high of about Rs.390. In September, the stock fluctuated a lot, finally closing at about Rs.379 at the end of the month.
- The price of the stock held steady for most of October 2016 and closed for the month at about Rs.386. November again marked a period of decline for the stock price and it closed for the month at about Rs.315. In December, the stock did not gain much and closed at about Rs.328 at the close of the month.
Overall, in the year 2017, the stock opened at about Rs.328 for the month of January. The stock closed at about Rs.655 by the end of December. The entire year was marked by periods of growth for the stock price.
- The stock did not increase much in price in January, closing at about Rs.337 by the end of the month. By the end of February, the stock closed at about Rs.373. This was a solid increase from the closing price for the previous month. In March, the stock breached the Rs.400 mark with the stock closing at about Rs.412 by the end of the month.
- In April, the stock did not gain much, closing for the month at about Rs.411. May marked a period of solid growth with the stock rising to about Rs.486 by the end of the month. The stock declined in June to close for the month at about Rs.457.
- The stock began gaining in price again in the month of July, closing at about Rs.504 by the end of the month. A final 350% dividend was announced in the month of August 2017. The stock closed at about Rs.524 for the month. September saw the price decline again but the stock remained at a price that was over Rs.500. The stock closed at about Rs.506 by the end of the month.
- October 2016 marked a period of growth and the stock closed at about Rs.567. The stock gained even more in November, breaching the Rs.600 mark and closing for the month at about Rs.636. December saw the price fluctuate a lot but the stock closed for the month at about Rs.655.
Should You Invest in Voltas?
- The demand for air conditioning and refrigeration units grows by the day and Voltas is extremely well-placed to cater to this demand. Thus, the company stands to gain more in terms of profits.
- Since it has multiple divisions, the company does not depend on any one division for the entirety of its operations. This proves helpful during times of slow growth.
- The company has experienced solid growth in terms of sales and profits over the period of one year, from the financial year 2016–2017 to the financial year 2017–2018.
- The company has a number of foreign contracts in addition to its strong presence in the Indian domestic market.
- Since there is a great demand for mining equipment in developing countries, the company is well-poised to turn a profit selling such equipment.
- The company has received a number of awards for excellence.
- While all of these seem like good reasons to invest in the stock, it would be best to do so after performing personal research based on personal financial commitments, risk appetites, and amount of disposable income.
The company has three different independent businesses:
- Electro-mechanical projects and services - This division is mainly focused on providing refrigeration services both domestically and abroad.
- Engineering products and services - This division is focused mainly on textile machinery and equipment for construction and mining.
- Unitary cooling products - This division is focused on air conditioners, refrigeration for commercial use, and water coolers and dispensers.
In addition to these, the company is also involved in projects that are considered critical in their field, manufacturing of their products, and sales and service of their products.
History of the Company
The company was founded in the year 1954 in Mumbai, India. The initial operations of the company involved manufacturing cooling units like refrigeration units, air conditioning and agricultural and electric equipment. In the year 1963, the company entered into a collaboration with a company called Scottish Machine Tool Corporation. In 1964, the company collaborated with an American company to manufacture fork-lift trucks. From 1964, till about 2014, the company underwent a period of expansion and growth in which it signed a number of joint ventures, alliances, and collaboration agreements with foreign companies. All of these served to increase the company’s market presence around the world. Eventually, the company became one of the biggest players in the industry in India.
Management of the Company
The board of directors of the company comprises the following people:
Noel N Tata - Chairman
Pradeep Bakshi - Managing Director and CEO
Anil George - Deputy Managing Director
Nani Javeri - Director
R N Mukhija - Director
Vinayak Deshpande - Director
Debendranath Sarangi - Director
Bahram Navroz Vakil - Director
Anjali Bansal - Director
Hemant Bhargava - Director
Arun Kumar Adhikari - Director
Noel Tata is a businessman from India who is part of the Tata family. His career in business started with a stint at Tata International. He eventually became managing director for the the retail side of the business. During this tenure, he managed to make the business profitable. In 2003, he was became part of Voltas as a director. This began his stint with Voltas, which led to his becoming the Chairman later.
Voltas Listings in NSE, BSE, and Other Indices
The company is listed on the BSE and the NSE under the following codes:
ISIN Code: INE226A01021
The company is part of indices like the Nifty 200, Nifty Alpha 50, Nifty Full Midcap 100 and S&P BSE 200 among others.
Other than the BSE and the NSE, the company is also listed on stock exchanges like, Bangalore Stock Exchange Limited, Calcutta Stock Exchange Association Limited and Cochin Stock Exchange Limited among others.
The corporate headquarters of the company is located at the following address:
Voltas Limited, Voltas House, ‘A’ Block, Dr. Babasaheb Ambedkar Road, Chinchpokli, Mumbai - 400 033
Phone number: 022 66656 666
Fax: 022 66656 311
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