550% Dividend: Tata Stock Sinks 12.62%, Motilal Oswal Gives Buy For 25.74% Likely Gain; TP Rs 1590

Tata Group stock Voltas Ltd shares witnessed decline of 1.90% in trade today and fell 12.62% in last 1-week. Current market price of Voltas share on BSE is Rs 1264.50 per share. The Board of Directors of Voltas recommended a dividend of Rs 5.50/share on the face value of Re 1/share for the year 2023-24. Voltas shares offered return of 29% in last 3-months and 55% in last 6-months. The market cap stood at 41,658.39 crore. Brokerage firm Motilal Oswal has recommended buy call with target price of Rs 1590 per share. If you buy Voltas stock now, you can fetch likely return of 25.74%. It is worth noting that Life Insurance Corporation Of India (LIC) has 7.21% stake in Voltas. More details below:

Voltas Recommended Dividend: As per the BSE filing of the company, "The Directors have recommended Dividend of Rs.5.50 per share on face value of Re.1 per share (550%) for the year 2023-24 which shall be paid/despatched on or after fifth day from conclusion of ensuing 70th Annual General Meeting, subject to approval of shareholders of the Company. The Meeting of the Board of Directors commenced at 12.00 noon and concluded at 6.10 p.m."

Voltas Dividend History: Voltas announced 24 dividends since June 28, 2001. In the last 1-year, Voltas Ltd. announced an equity dividend amounting to Rs 4.25 per share. At the current share price of Rs 1264.50, Voltas offers a dividend yield of 0.34%.

Voltas Technical Analysis: Score is 63.71 indicating the stock is technically moderately strong. Stocks with score between 60 and 70 are considered as technically moderately strong. RSI is 44.5, RSI below 30 is considered oversold and above 70 overbought. MFI is 60.0, MFI below 30 is considered oversold and above 70 overbought. FII/FPI have decreased holdings from 17.18% to 14.71% in Mar 2024 quarter. Number of FII/FPI investors decreased from 365 to 349 in Mar 2024 quarter. Mutual Funds have increased holdings from 18.81% to 24.17% in March 2024 quarter. Number of MF schemes increased from 32 to 34 in March 2024 quarter. Institutional Investors have increased holdings from 54.39% to 55.28% in March 2024 quarter, according to Trendlyne.

Voltas Q4: The leading company today announced a fall of 19% in consolidated net profit, attributable to owners, at Rs 116 crore for the quarter ended March 31, 2024 as against the net profit of Rs 144 crore reported in the corresponding quarter of last year. However, its consolidated revenue from operation surged 42% to Rs 4,203 crore for Q4 financial year 2024 as against Rs 2957 crore reported in the similar quarter of last year. Voltas' EBITDA declined 13% to Rs 190.6 crore as compared to Rs 218 crore in the year-ago period. Its margins slipped 290 basis point in Q4FY24 to 4.5% as against 7.38% in Q4FY23.

Voltas Share Performance: The 52-week high price of Voltas share on BSE is Rs 1500.00 apiece (as on 02/05/2024) and 52-week low price is Rs 745.00 per share (as on 14/07/2023), respectively. Voltas has a PE of 68.95 and EPS (TTM) of 18.26. Voltas shares declined over 13% in last 2-weeks, jumped over 55% in last 6-months, soared 36% in last 2-years, and offered return of 122% in last 5-years.

Voltas JV With Arcelik: Reports stated the Voltas' joint venture (JV) with Turkey's Arcelik may offer massive boost to the profitability and market share as it is likely to break even in financial year 2026. According to UBS, "We expect an incremental revenue growth of Rs 10,000 crore, a 60 percent of FY27 revenue in consumer electronics." Earlier in 2017, the two firms established a $100 million JV to debut in the country's consumer durables market. The JV known as Voiltbek in engaged in the manufacturing of washing machines, refrigerators, and microwave, among others in India. Voltas and Arelik hold 49% in the JV and their respective parent companies namely Tata Group and KOC Holding hold 1% each, as per reports.

About: Voltas offers a comprehensive range of cooling solutions including room air conditioners, air coolers, air purifiers, water dispensers, water coolers, commercial refrigeration and commercial air conditioning products in its portfolio. Voltas is one of the leading companies within the Tata group with a footprint of over 25,000 customer touchpoints. It has also recently launched a range of Voltas Beko home appliances, through its JV in India, in equal partnership with Arcelik.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.