Voltas‘ share price was tanking on Wednesday morning after the company’s March quarter results failed to meet expectations. The Tata Group stock crashed over 9% to hit an intraday low of ₹1,262.

What Happened: The AC manufacturer reported a net profit of ₹110.6 crore for the March quarter, a 23% decline from the ₹143 crore recorded in the same quarter last year, falling short of street estimates of around ₹190 crore. However, revenue from operations reached ₹4,202.88 crore, up 42% from ₹2,936 crore in the corresponding quarter last year, surpassing analyst estimates of approximately ₹3,800 crore.

Analyst Reactions: Nomura maintained its “buy” call on Voltas with a price target of ₹1,450. The brokerage firm said that the company’s revenue from the Unitary Cooling Products business was ahead of its estimates but EBIT margin was lower.

UBS also maintained its “buy” rating for the stock with a target price of ₹1,800. The brokerage said that the company outperformed its peers in the cooling business. The analysts added that the Unitary Cooling Products business would see margins improve gradually.

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Macquarie maintained its “neutral” rating for the stock with a price target of ₹842. The analysts said that the company’s March quarter margins missed estimates. The brokerage also pointed out that the company’s market share in ACs declined from 19% in the December quarter to 18.7%.

Morgan Stanley maintained its “equal weight” rating with a price target of ₹1,160. The global brokerage said that the company’s margins in the AC business disappointed and the project business continued to incur losses.

Investec maintained its “hold” rating for the stock with a target price of ₹1,100. The brokerage said that the company’s performance during the January-March quarter was an overall disappointment. The brokerage highlighted that the EMP segment posted EBIT-level losses for the sixth consecutive quarter.

Price Action: Voltas’ share price was down 8.58% to trade at ₹1,270 as the market opened on Wednesday.

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