Voltas Share Price Slips Below 20-DMA, Still Holds Above Key Levels

Voltas Share Price Declines Below 20-DMA

On October 17, the share price of Voltas witnessed a decline of over 2%, slipping below its 20-day moving average (DMA) of Rs 1,843.81. Despite this dip, the stock is still trading above a key gap area from the last trading session, providing some technical support. Additionally, Voltas remains above its 50-DMA, a critical level that signals a generally positive trend.

Performance Over the Month of October

Although Voltas had experienced consistent gains in the past few months, its share price has seen a marginal decline of over 0.5% in October so far. This slight dip comes after a robust performance earlier in the year. On a year-to-date (YTD) basis, Voltas has delivered an impressive gain of 87.61%. The stock’s resilience in maintaining levels above key moving averages, despite recent declines, signals the potential for continued strength in the longer term.

Corporate Overview of Voltas Limited

Voltas Limited, a TATA enterprise, has been at the forefront of engineering solutions in India for over seven decades. The company’s diverse business portfolio includes air conditioning, refrigeration, electro-mechanical projects, water management, and industrial capital equipment. With a robust network of 10,600+ employees and state-of-the-art manufacturing facilities, Voltas leads the market in room air conditioners, commanding a market share of over 21% as of July 2024. Their innovation-driven approach and strong R&D capabilities have enabled them to set industry benchmarks in terms of product quality, efficiency, and customer satisfaction.

Financial Performance in Q1FY25

Voltas witnessed strong financial performance in Q1FY25, reporting a total income of Rs 5,001 crores, which marked a significant increase from Rs 4,257 crores in the same quarter last year. The company’s profit before tax (PBT) for the quarter stood at Rs 480 crores, a notable jump from Rs 212 crores in the previous quarter. Voltas’ Unitary Cooling Products segment led the way, accounting for 77% of the revenue, followed by Engineering Projects at 19%, and Engineering Products at 4%. The company’s profitability was supported by cost-saving initiatives and value engineering across various segments.

Business Segments

Voltas operates across several key business segments, including Unitary Cooling Products, Engineering Projects, and Engineering Products. The Unitary Cooling Products segment, which includes air conditioners and refrigeration units, remains the company’s largest contributor, with a 77% revenue share, driven by strong demand and market leadership in the room air conditioner space. The Engineering Projects segment, contributing 19% of the revenue, focuses on mechanical, electrical, and plumbing (MEP) solutions, with notable growth in infrastructure projects. The Engineering Products segment, representing 4% of revenue, covers mining and construction equipment, showcasing steady contributions from O&M projects and equipment sales. Each segment plays a vital role in Voltas’ diversified growth strategy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.