Welcome back to one more educational article where we have analyzed a multibagger stock (Voltas share price).
So let’s deep dive into Voltas share price by understanding its business, fundamental and technicals.
Voltas is in the business of air conditioning, refrigeration, electro-mechanical projects as an EPC contractor both in domestic and international markets.
It also has expertise in engineering product services for mining, water management and treatment, construction equipment’s and textile industry.
The company was formed 6 decades ago with a motive of providing accurate engineering solutions to its customers.
It has 5,000+ customer sites actively managed across India.
The company was listed in the Indian markets with a book value of Rs. 151 which has grown around 7 times till date.
Now coming to the Financials of the company.
The market capitalization of the stock is Rs. 33,522 Cr.
The price to earnings ratio of the stock is 63.8 which is greater than the industry price to earnings ratio of 29.8. The value of P/E is greater but does not make the stock underperforming.
The company has a decent return on capital employed of 15.1% which shows the intention of the company that they are making progress year on year.
The return on equity is 11.3% which is also decent as per the stock’s valuations.
The company has a debt to equity ratio of 0.05 which is a strong point of the company stating that it has reduced the debt considerably.
The company is also paying a healthy dividend of 27.71%.
Based on the market capitalization, Voltas stands tall by holding the 1st position and is way ahead than its competitors.
In the month of June 2020, the operating profit of the company fell to its lowest of Rs 55 Cr. This was majorly due to the Covid pandemic which shook the stock market. After the June 2020 quarter, the sales of the company started to increase drastically, and the operating profit rose till Rs 309 Cr. This exponential rise in the financials of the stock helped it to achieve greater investing in the recent past.
The expenses of the company are increasing every quarter and the sales are also rising which indicates that the company is trying to expand itself which is evident from their rising operating profit.
The earnings per share value is Rs 7.18 which is greater at such cheaper market price.
The balance sheet of the company is pretty awesome as the reserves (i.e. the money of investors) are increasing year on year.
The share capital of the company is similar from the year 2010 which is 33 Cr.
There is a decrease in the total liabilities year on year.
For the March 2021, the company had a net cash flow of Rs 179 Cr which the company can use for expansion and growth or reduce the loan which they have taken to increase their business.
Promoters have a holding of 30.30% till March 2021 quarter.
The FII’s have a 14.38% holding.
The DII’s have a 37.22% holding while only 17.86% is with the public.
Promoters have less holding but DIIs and FIIs are a firm holder of this stock so share holding is not of a great concern.
This is a brief overview of the voltas share price which showcases the strong foundation it has in the market.
Now let’s deep dive in technical aspect of this multibagger stock.
If we give a closer look on the chart in a daily timeframe, we would be able to see a formation of reverse head and shoulder pattern.
This pattern has a unique structure and can definitely give easy targets which could be achieved in a shorter timeframe if an appropriate breakout is achieved.
The pattern is under formation.
The voltas share price on 07th July 2021 is Rs. 1013 which would definitely vary in the upcoming future.
Chart pattern is under formation which is highlighted in the above image.
This analysis is only for study purpose. No one should buy or sell the stocks based on this analysis, one should make a decision as per his/her due diligence. Prices vary daily and that’ll impact the chart patterns as well. Our intention is just to share the information related to the stock through this forum.
Image source: tradingview.com