FINANCE & STOCK ADVICE: My view on Voltas Limited

About The company

Voltas limited is a entity of TATA group ,the company is engaged in export to turnkey electro-mechanical projects for built environment. It is the biggest exporter of the same in the country. It is also the largest air conditioning company of India.It is a trusted name in mining and construction equipment, having executed the world’s single largest order of Rs.1,000 crore from Coal India.

Some of worth mentioning projects

1.The new Hong Kong Airport.

2. Mall of Emirates in Dubai.

3. Emirates Palace Hotel in Abu Dhabi.

4. Provided air conditioning for the new Hyderabad and Mumbai airport.

About the financial of the compnay

Financial position of the company for the first quarter ended 30th June 2008. YoY, net sales of the company rose 22% at Rs.1006.73 crore and despite a 205 rise in operating expenses, EBIDTA was up 58%. The over three times rise in other income also helped the operating margins. PBT was up 61% at Rs.126.18 crore and tax outgo was up 53%. PAT was up 63% at Rs.85.13 crore. The OPM was up at 12.88% from 9.94% and NPM at 8.46% from 6.32%. The Electro-mechanical projects & services division contributed Rs.463.16 crore, cooling products Rs.400.77 crore and the engineering products and services division contributed Rs.136.42 crore. The overall high sales for Q1FY09 was mainly on account of the cooling division which is seasonal and almost always, is the highest in first quarter. The company had an exceptional gain of Rs.23.21 crore which also boosted the profits and this was due to assignment of leasehold rights at Rs.23.24 crore, of which Rs.30 lakhs was deducted on account of VRS expenses.

Subsidary & Acquisitions

Voltas has acquired a 51% stake in Rohini Industrial Electricals for a consideration of Rs.62 crore. Prior to this, on June 17, 2008 the company purchased a subsidiary of Fedders Corporation, which is now a subsidiary of Voltas.

Shareholding pattern of promoters

A trait of Tata group, the promoter’s shareholding remains low at 27.57% and institutions hold 44.03%. LIC holds a 7.74% stake.

About the stock

In the meltdown of last week, it touched a new low at Rs.112.For long term prospective stock is a good buy.

Disclaimer : I do have any personal holding in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My view on Voltas Limited