Update on the Indian Equity Market:
\nOn Monday, NIFTY closed in the red at 11,387 (-2.2%). The top gainers in NIFTY50 were ONGC (+1.6%) and TCS (+0.6%). The top losers were Sun Pharma (-7.3%), SBI (-5.9%), and Cipla (-5.5%). The top sectoral losers were MEDIA (-5.8%), PSU BANKS (-4.7%), and PHARMA (-4.6%) and there were no sectoral gainers.<\/p>\n
Excerpts of an interview with Mr Pradeep Bakshi, MD and CEO of the Tata Group AC Company, with CNBC TV18 dated 28th August 2020:
\n\u25cf\tGenerally summer months starting from March till June accounts for more than 50% of the sales in the compressor products like the air-conditioner products. Unfortunately, due to the lockdown, right from March 20 onwards until May 20, they lost out nearly 60 days of sales.
\n\u25cf\tOut of three and a half months, they lost out two months that is somewhere around 50-60% of the business was lost for the industry during these summers because of the lockdown.
\n\u25cf\tVoltas has done better than the industry while highlighting that most brands haven\u2019t registered growth.
\n\u25cf\tDuring this period, the industry has been able to sell the products but most of the brands have not registered growth. However, Voltas\u2019 business, they have done decent numbers during this period.
\n\u25cf\tIn terms of volume, revenue and profitability they are way ahead of the competition and the industry.
\n\u25cf\tThe industry as a whole has not been able to do a great job during Q1. Until July, August also, they have been doing sales, some numbers are clicking but there is a large pile-up of inventory in the industry.<\/p>\n
Consensus Estimate: (Source: market screener and investing.com websites)
\n\u25cf\tThe closing price of Voltas was \u20b9 635\/- as of 31-August-2020. It traded at 48x\/ 30x\/ 27x the consensus earnings estimate of \u20b9 13.2\/ 20.9\/ 23.9 for FY21E\/22E\/FY23E respectively.
\n\u25cf\tThe consensus price target is \u20b9 659\/- which trades at 28x the earnings estimate for FY23E of \u20b9 23.9\/-
\nDisclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Monday, NIFTY closed in the red at 11,387 (-2.2%). The top gainers in NIFTY50 were ONGC (+1.6%) and TCS (+0.6%). The top losers were Sun Pharma (-7.3%), SBI (-5.9%), and Cipla (-5.5%). The top sectoral losers were MEDIA (-5.8%), PSU BANKS (-4.7%), and PHARMA (-4.6%) and there were […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[30,84],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1327"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1327"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1327\/revisions"}],"predecessor-version":[{"id":1329,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1327\/revisions\/1329"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}