Global research firm Phillip Capital has maintained its neutral call on Voltas with a target price at Rs 510, implying 8.5 percent potential downside on likely margin pressure in Q3. The stock also fell 1.5 percent intraday.
“Valuations at 26xs PE are still look expensive,” the brokerage house said, adding the pressure on margin will continue in Q3FY18 with weak demand and high costs.
In long-term, the margin will be capped on rising competition, it said.
The air conditioning and cooling technology company sees a fall in growth in Q3 in room air conditioner industry due to unexciting festive demand.― Moneycontrol