HDFC Securities has retained 'Sell' on Voltas with target price of Rs 222 as against current market price (CMP) of Rs 279 in its report.

Commenting on the investment rationale, the stock broker said, "Voltas' 2QFY15 APAT of Rs 499 million was in line with estimates, primarily on account of higher than estimated margins for the EPS segment. The EMP segment continued to report weak numbers. UCP segment's performance was strong driven by the extended summer and festive season.

From primarily a projects company, Voltas is now being perceived as a products company with a project business. The company has managed to maintain its margins and leadership in the fast growing room AC market. With an expected revival in urban consumer sentiment, strong growth in the UCP business should continue.

However, our earnings estimates already factor that, along with a sharp recovery in the EMP business. At 25x FY16E, the stock is expensive for an expected RoE of 15/17/19% in FY15/16/17."

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