While the smallcap and midcap indices have risen considerably in 2017, there have been a few largecap stocks which have nearly doubled investor wealth since January. One such large cap, shares of Voltas Ltd has returned a staggering 96% in the year so far. In the last one month alone, the shares have risen by nearly 20%. Edelweiss Securities has raised the target price on the shares to Rs 700, from the previous target of Rs 620. The shares were trading at Rs 641.9 on Thursday morning.
Track live stock price: Voltas Ltd
Edelweiss says that it sees significant ramp-up in white goods revenue. The air-conditioner maker had reported a 22% increase in its consolidated profit after tax to Rs 95 crore for the September quarter. The company had posted a net profit of Rs 78 crore in the corresponding quarter last fiscal.
Notably, the scrip is a huge favourite among top mutual fund managers too, with HDFC Mutual Fund holding more than 5.6% in the company as at the end of September-17. Franklin Templeton Investments, SBi Mutual Funds, IDFC Mutual Fund and Mirae Asset Mutual Fund hold more than 1.25% each, with Franklin Templeton holding as much as 3.875 as at the end of September-17. Edelweiss expects the company’s EPS to rise at a CAGR of 19% over FY17-19.
After the midcap stocks rallied in 2017, many top experts have suggested investors to move to largecap stocks. In an interview to CNBC TV18, Harsha Upadhyaya CIO-Equity, Kotak Mutual Fund said, “On valuation front, midcap is relatively higher compared to largecaps. As asset sizes increase, the challenge increases to find value in the space. However, funds which are mandated to invest only in midcaps will try to find opportunities within the space. Multicap portfolios where we can move across market capitalisations, our tilt is towards largecap. We have been very focussed on largecaps within the multicap segment.”