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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:
With VOLTAS's revenues expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.
Financial Ratios:
| currentRatio | 1.36700 |
|---|---|
| forwardPE | 37.53133 |
| debtToEquity | 15.51000 |
| earningsGrowth | -0.51800 |
| revenueGrowth | 0.02500 |
| grossMargins | 0.22287 |
| operatingMargins | 0.04093 |
| trailingEps | 11.32000 |
| forwardEps | 33.61991 |
VOLTAS's current ratio 1.367, suggesting the company has sufficient liquidity to service its short-term debt. With its cash reserves and current assets in good shape, VOLTAS can comfortably meet its immediate liabilities, reflecting a healthy financial standing.
VOLTAS's low Debt-to-Equity ratio indicates that the company isn't heavily dependent on debt financing. This lower leverage reduces financial risk and enhances stability, showing that VOLTAS is well-positioned to manage its obligations without the burden of excessive debt.
VOLTAS's low earnings and revenue growth suggest shrinking profits. This negative trend could indicate that the company is struggling to maintain its financial performance and may face challenges ahead.
Voltas Limited's negative gross and operating margins reflect unprofitability, suggesting the company is unable to generate revenue sufficient to cover its costs. This could indicate deeper financial challenges or declining efficiency.
VOLTAS's forward EPS is higher than its trailing EPS, which signals that the company is expected to achieve greater profitability this financial year. This suggests improved earnings performance, indicating a positive outlook for VOLTAS's financial growth.
Price projections:
The price of VOLTAS has regularly been close to the lower end of projections, suggesting that it might be struggling to meet market expectations. This trend raises questions about the company's future performance.
Recommendation changes over time:
VOLTAS has garnered a buy bias from analysts recently, suggesting the stock is a good investment opportunity. This may lead to increased investor interest, as VOLTAS is seen as a reliable place to park money for those looking to benefit from potential market gains and company growth.
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