Voltas (VOLTAS)

FairStock Score: 22/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham’s lens and Buffett’s patience. Voltas is a household appliances name with recent momentum: latest quarter sales ₹3,071 Cr and net profit ₹84 Cr, while sales growth is 28.81% and profit growth 37.84%. Five-year revenue CAGR of 15.01% suggests it can grow. Balance sheet modest leverage: debt/equity 0.16, ROCE 17.64%, Altman Z-score 4.09. That is a decent business, but not a bargain. The problem is price. At ₹1,320.50 and market cap ₹43,693 Cr, it trades at P/E 97.10, P/B 6.85, EV/EBITDA 102.86, and PEG 53.88. Graham Number is only ₹258.86, giving a margin of safety of -503.14%. In plain terms, I am paying about five times the Graham-derived value. ROE is just 7.69%, and Piotroski F-score 4/9 says financial quality is only middling. Free cash flow is negative ₹66 Cr, so reported profit isn't yet converting into owner cash. Dividend yield 0.30% gives almost no income support. Promoter holding 30.30% is not a strong insider anchor in my view. The moat? ROCE of 17.64% and brand-linked appliances can earn above-cost returns, but the numbers don't yet show a wide, cash-generative moat. Growth is attractive, but at this valuation even excellent execution may not protect capital. FairStock Score 22/100 (RISKY) aligns with caution. I would wait for either a much lower price or a visible improvement in ROE, FCF, and returns on capital. Until then, this is a wonderful growth story at an unwonderful price. The stock may remain a Fast Grower, but I demand a margin of safety.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer