HDFC Securities has upgraded Voltas to 'Buy' from 'Sell' with target price of Rs 367.

Commenting on the result performance, HDFC Sec said, "Voltas' 4QFY15 APAT of Rs 1.2 billion was ahead of our estimate of Rs 918 million, as UCP (Unitary cooling products) segment reported strong earnings, yet again. EMP business continues to be subdued.

Our negative stance on the stock has been based on weak EMP business but the company has proven us wrong by consistently outperforming expectations in the UCP business, which has more than made up for EMP weakness."

On the investment rationale, the stock broker said, ''Company's UCP business has been consistently outperforming our expectations.We expect revenue growth and margins to remain strong in this segment, driven by increasing urbanization, better product mix and foray into new segments. With UCP firing on all cylinders, we believe Voltas will continue to trade at premium multiples.

We increase our FY16/17E EPS by 7/6% as we increase our UCP segment margin assumptions by 150bps to 13.5%. Upgrade the stock to BUY (from SELL).''

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