Voltas Shares Slump 4% After Goldman Sachs Downgrades Rating Due To Stagnating Market Share

At 11:44 IST, shares of Voltas were trading 1.9 percent lower at Rs 954.1 on the BSE. The stock is 3.51 percent away from its 52-week low of Rs 923.5.

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The global brokerage firm sees downside risk to the company’s current valuation multiples, especially after the erosion seen recently with around 250 basis points decline on a quarter-on-quarter basis in the fourth quarter of FY22.

Margin remaining at lower levels and further downside risk to Street estimates also threaten the company’s current valuation multiples, according to Goldman Sachs.

The stock is trading at a 12-month forward price to earnings multiple of 58 times against the last five-year median of 41 times and long-term median of 28 times.

While the foreign brokerage firm sees fundamentals remaining weak in the near term for consumer durables in India, it sees better valuation support elsewhere. Goldman Sachs has reiterated its ‘buy’ recommendation on Symphony and Crompton and has a ‘neutral’ rating on Havells.