pocketful logo light
pocketful logo light
Voltas Ltd logo

Voltas Ltd

NSE: VOLTAS BSE: 500575

â‚ą1245.70

(1.28%)

Fri, 05 Jun 2026, 07:02 pm

mtf coin illustrationMTF 5x

Voltas Analysis

dividend

thumbs up icon

Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.9x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
  • Dividends per share have been stable in the past 10 years.
thumbs up icon

Cons

  • Voltas's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Voltas's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

thumbs up icon

Pros

  • Voltas's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Voltas's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Construction industry average.
  • An improvement in Voltas's performance (ROE) is expected over the next 3 years.
  • Voltas's revenue growth is expected to exceed the India market average.
thumbs up icon

Cons

  • Cash flow for Voltas is expected to increase but not above the 50% threshold in 2 years time.
  • Voltas's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).
  • Voltas's earnings growth is positive but not above the India market average.
  • Voltas's earnings are expected to decrease over the next year.
  • Voltas's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Voltas is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Voltas's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Voltas's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

health

thumbs up icon

Pros

  • Voltas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Voltas is profitable, therefore cash runway is not a concern.
  • Voltas is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (212.3%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 25.6x debt.
  • Voltas's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (5.8% vs 5% today).
  • Interest payments on debt are well covered by earnings (EBIT is 31x coverage).
  • Voltas's level of debt (5%) compared to net worth is satisfactory (less than 40%).
thumbs up icon

Cons

  • High level of physical assets or inventory.

management

thumbs up icon

Pros

  • The tenure for the Voltas board of directors is about average.
  • Pradeep's remuneration is about average for companies of similar size in India.
  • The tenure for the Voltas management team is about average.
thumbs up icon

Cons

  • Pradeep's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

past

thumbs up icon

Pros

  • Voltas's year on year earnings growth rate has been positive over the past 5 years.
  • Voltas used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
thumbs up icon

Cons

  • Voltas's 1-year earnings growth is less than its 5-year average (1.9% vs 7.2%)
  • Voltas's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
  • Voltas has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Voltas's earnings growth has not exceeded the IN Construction industry average in the past year (1.9% vs 2.3%).

value

thumbs up icon

Pros

  • 500575 outperformed the Construction industry which returned -40% over the past year.
  • 500575 outperformed the Market in India which returned -14.5% over the past year.
  • BSE:500575 is up 18.9% outperforming the Construction industry which returned 7.1% over the past month.
  • BSE:500575 is up 18.9% outperforming the market in India which returned 8% over the past month.
thumbs up icon

Cons

  • Voltas's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Voltas's share price is below the future cash flow value, but not at a substantial discount (< 40%).
  • Voltas is overvalued based on assets compared to the IN Construction industry average.
  • Voltas is poor value based on expected growth next year.
  • Voltas is overvalued based on earnings compared to the IN Construction industry average.
  • Voltas is overvalued based on earnings compared to the India market.