Stock Idea- Voltas LTD

In the series of our stock pick, I now present Voltas. Voltas has gone through a lot of beating. Stock Market at large has been go through a lot of pain. Turmoil in middle east, economical recovery in the west and series of scams are mainly responsible for that. There are lot good stock which has taken the beating.

This is a very good opportunity to build portfolio. Voltas has got descent exposure to the Middle East so since the unrest in the middle east started, stock has been going down. Though, company has been claiming that they don’t have any exposure in Libya but fear of unrest spreading to the other part of the middle east is keeping the investors away from the market as well as Voltas. Voltas is present in some other part of the middle east like Abu Dhabi, Dubai and Qatar.

Although, it is unlikely that protests will spread in these regions but investors are still maintaining the distance from the stock. Recently it made its all time low when it touched 150. This is a quality stock which will do well once markets start moving up. It is a long term stock pick so investors should keep it for a year or so. They can also add in case further breaks below.

Stock is fundamentally good and is one of the best stock pick in its sector. Market onward is going to be very selective and only stock with good fundamentals will do well. Technically stock is not in a very good shape but as we are targeting a time horizon of more than a year, we can ignore that issue for short term. As stock has taken a lot of beating, in case things calm down in the middle east and markets move up, It will move up really fast but no one can be sure about the timing of that. So, its better to buy it for long term and if someone can make good 30-40 per cent even in less than year time, then they can exit and book profit.