Welcome back to one more interesting series of articles wherein we’ll discuss the share price of Voltas which was analyzed earlier and has achieved the target predicted by us in a span of 78 days.
Let’s check the parameters which helped the share price of Voltas to achieve the desired target of approximately 25%.
BUSINESS ANALYSIS FOR TARGET ACHIEVEMENT
Voltas made a statement that the business related to Unitary Cooling products made a steady recovery and achieved a massive growth of 24% and around 60% of the company’s revenue comes from this segment during the quarter of September 2021.
Room air conditioners (AC) contributed a growth of 19%.
Commercial refrigeration products contributed a whopping 31% for Voltas’s growth and 78% by air coolers.
Voltas has maintained its no. 1 position in the room air conditioner business with its market share of 25.9% YTD August 2021.
Revenue related to Engineering Products and Services also rose by 34% which ultimately helped the company to attain the expected financial results.
FINANCIAL ANALYSIS FOR TARGET ACHIEVEMENT
Figures in Rs. Crores
|Quarterly Results||Jun 2019||Sep 2019||Dec 2019||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
|Profit before tax||258||150||119||217||108||115||166||321||168||143|
|EPS in Rs||4.99||3.22||2.63||4.8||2.45||2.37||3.87||7.18||3.68||3.13|
The main reason for the increase in share price of Voltas was the reduction in expenses in the quarter ended 30-09-2021 which ultimately helped in achieving an operating profit of ₹ 110 Cr.
In the below table we have included the balance sheet of Voltas Ltd which clearly states that the Reserves are increasing steadily. Increase in Reserves is an indication that investors are very much interested in this stock.
Liabilities have reduced in the quarter ended 30-09-2021 which shows that management is on a role to maintain this company as the market leader for years to come.
Figures in Rs. Crores
|Balance Sheet||Mar 2013||Mar 2014||Mar 2015||Mar 2016||Mar 2017||Mar 2018||Mar 2019||Mar 2020||Mar 2021||Sep 2021|
SHARE HOLDING SYNOPSIS
|Share holding pattern||Jun 2019||Sep 2019||Dec 2019||Mar 2020||Jun 2020||Sep 2020||Dec 2020||Mar 2021||Jun 2021||Sep 2021|
Promoters have maintained their position in this stock.
But there is a great interest shown by FIIs which is showcased by their action of increasing the stake in this stock by around 5%.
Now, let’s deep dive into the technicalities of the share price of Voltas.
CHART PATTERN ANALYSIS
During the prior analysis we had highlighted the formation of a reverse head and shoulder pattern.
The stock did give a breakout and achieved its target of ₹ 1241.
The stock rallied till ₹ 1356 and showed an upside of approximately 25%.
Reverse head and shoulder pattern is a tested bullish pattern which has again shown its merit by helping us to reach the said target.
For the share price of Voltas, we had taken 9 days and 21 days moving averages.
As per the historical crossovers we had predicted that there would be a rally in the stock once the two moving averages again cross each other.
The same happened and the stock achieved its desired target.
The 9 days moving average is indicated in red while the 21 days moving average is blue.
Super trend indicator showed a buying signal which made the conviction stronger on this stock.