Nomura Financial Advisory and Securities has reiterated 'Buy' on Voltas with revised target price of Rs 229 from Rs 208 as against current market price (CMP) of Rs 206 with 11.4% potential upside in its report.

Commenting on the investment rationale, Nomura said, ''Voltas' 4Q FY14 results were significantly ahead of our and consensus expectations, once again led by the strong performance of its room AC segment (UCP), while its electro-mechanical projects (EMP) segment posted a loss.

While the profitability of this segment has been under stress owing to cost overruns in legacy international projects, we think that with the legacy international projects now accounting for only 10% of the outstanding order book (as of end-Mar14), margins for this business should return to normalised levels by 2HFY15.

We don't rule out a positive surprise on the margins front, on account of compensation, which could come in on cost overruns from customers. For the UCP segment, management has reiterated its guidance for sustainable margins of low double digits. To reflect the strong performance of the UCP segment, we raise our EPS estimates by 8-10% for FY15F/FY16F.

We remain positive on the stock, on the back of a potential improvement in the domestic macro environment, and reiterate our Buy rating on Voltas.''

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