Impending stock-split stands Voltas in good stead

Impending stock-split stands Voltas in good stead. Voltas surged 6% to Rs 940, extending its recent surge. As many as 53,468 shares changed hands in the counter on BSE.

Voltas witnessed a sharp surge since late July 2006, partly because of the forthcoming stock-split and partly on the back of decent Q1 results. From Rs 652.25 on 24 July, it has risen 44% to current Rs 940.

Early this month, company shareholders approved a liberal 10-for-1 stock-split. However, the company is yet to announce a record date for the stock-split, which may raise liquidity in the counter. The average daily volume in the scrip on BSE in the past one year was 62,970 shares.

Recently, Voltas formed a strategic partnership with Netherlands based CA/ULO storage technology specialist Besseling-Group to gap the Rs 5,000 crore agro-storage solutions market in India.

Voltas has transformed itself into a major engineering company from a consumer durables firm making air-conditioners. It is now undertaking large electromechanical projects in India and also in the Middle East. Voltas also provides engineering services to the world's major engineering equipment manufacturers.

For Q1 June 2006, Voltas reported 31% growth in net profit to Rs 21.75 crore (Rs 16.55 crore). Sales rose 33% to Rs 580.40 crore (Rs 436.71 crore).

The order-book position of Voltas for electromechanical projects was Rs 1,900 crore as on 30 June 2006. Of these, orders worth Rs 600 crore are from domestic firms whereas the rest are from overseas, mostly from UAE.

FIIs held 24.08% stake in Voltas as on 30 June 2006.

 

source: capitalmarket