Nomura downgrades Voltas from 'buy' to 'reduce', shares fall 3 per cent

Global investment major Nomura has downgraded Voltas from 'buy' to 'reduce', cutting earnings estimates for the scrip by 12 per cent and 16 per cent for the 2015-16 and 2016-17, respectively.

Reacting to the news, shares of India's largest air conditioning company fell over 4 per cent on Tuesday.

"Dealer checks suggest air condition sales of Voltas are cooling off," Nomura said in a report. Voltas' shares have 18 buys, seven hold and 3 sell ratings.

Shares of the company are trading at price-to-earnings ratio of 25.2 against 29.6 of rivals, according to Thomson Reuters Eikon data.

The scrip closed at Rs 314.60, down 4.57 per cent against its previous close. The BSE Sensex closed 0.49 per cent higher at 27,780.83 at the same time.

(With inputs from Reuters)