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Fundamentals for Voltas Limited
Business Operations:
Sector: Consumer CyclicalIndustry: Furnishings, Fixtures & Appliances
Voltas Limited operates as an air conditioning and engineering solution provider primarily in India, the Middle East, Africa, and internationally. It operates through three segments: Unitary Cooling Products for Comfort and Commercial Use; Electro-Mechanical Projects and Services; and Engineering Products and Services. The company manufactures, sells, and services cooling appliances and cold storage products, such as air conditioners, air coolers, freezers, visi coolers, water coolers and dispensers, variable refrigerant flow, and chillers, as well as washing machines, microwave, and dishwashers. It also undertakes electro-mechanical projects, including electrical; heating, ventilation, and air conditioning projects; and plumbing, firefighting, extra low voltage, and specialized activities. In addition, the company provides facilities maintenance and hard services, such as operations and maintenance contracts in various sectors, AMCs, retrofits and energy management, etc. Further, it engages in the provision of water treatment solutions for industrial and domestic sewage segments, as well as last mile connectivity of water under various government schemes; sale of capital machinery for textile industry; sale of spares and accessories for textile equipment; and sale of mining and construction equipment. Additionally, the company offers operations and maintenance services for mining and construction industry; sells mining and construction equipment; manufactures ducts and duct accessories; and undertakes engineering, procurement, and construction projects. It also engages in the drilling, irrigation, and landscaping activities; and construction of water treatment plants. Voltas Limited was incorporated in 1954 and is headquartered in Mumbai, India.
Revenue projections:
Investors may be wary of VOLTAS as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.
Financial Ratios:
| currentRatio | 1.367000 |
|---|---|
| forwardPE | 38.707897 |
| debtToEquity | 15.510000 |
| earningsGrowth | -0.518000 |
| revenueGrowth | 0.025000 |
| grossMargins | 0.222280 |
| operatingMargins | 0.056930 |
| trailingEps | 11.400000 |
| forwardEps | 33.646880 |
VOLTAS's current ratio being 1.367 shows it has more than enough assets to cover its short-term debts. The company's liquidity position is strong, with ample cash reserves available to meet its immediate financial obligations without strain.
Voltas Limited's Debt-to-Equity ratio is low, indicating the company is not over-leveraged. This suggests a prudent approach to financing, with minimal dependence on debt, reducing the financial risk associated with high leverage, and signaling a stable financial outlook.
VOLTAS's low growth in both earnings and revenue indicates a likely decrease in profits. This suggests the company may be facing financial challenges, and investors should be cautious about its future performance.
VOLTAS's negative gross and operating margins indicate that the company is operating at a loss. This reflects an inability to cover production costs and operational expenses, which could undermine its financial stability.
Voltas Limited's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with Voltas Limited anticipated to deliver better earnings than it did in the prior year.
Price projections:
VOLTAS's stock price has repeatedly hovered near the lower end of projections. This trend indicates that the company may be facing obstacles in achieving the growth anticipated by analysts.
Recommendation changes over time:
Analysts have shown a buy bias for VOLTAS, marking it as a favorable investment option. This could inspire investors to see VOLTAS as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.
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