Voltas receives favourable media coverage
Voltas, the largest air conditioning company in India, has attracted positive press coverage recently. Heckyl News Analytics platform, which identifies positive and negative media coverage by scanning thousands of news and blog sources in real-time, has assigned the highest positive score of 100 to the Tata Group company for 3 out of 5 trading sessions during the previous week. Meanwhile, the average sentiment score for the past week stood at 84. Heckyl assigns sentiment score on a scale of -100 (very negative) to 100 (very positive).
Positive news coverage during the last week helped Voltas to post a 20 percent rally in the share price. In fact, Heckyl sentiment score for May 22 and May 23 signaled impending share price rise for the last week. During this week, the stock came off slightly from a recent high amid profit booking. At the same time, a drop in media coverage pushed the sentiment score lower. The average sentiment score for the current week stood at 11 on Wednesday.
Here are some of the news items that may have impacted Heckyl Sentiment scoring:
Voltas India’s Profit Grows More Than Expected In January-March Quarter
Voltas, Arcelik Join Hands To Invest $100 Million In Consumer Durable
Top technical calls from Prabhudas Lilladher: Buy Tata Motors, Voltas
Accumulate Voltas Ltd. target Rs 545: Yes Securities
Jefferies rates Voltas as ‘Buy’, says Q4 FY17 yields positive surprise
Last week, Voltas reported a better than expected growth in the fourth quarter profit. Net profit for the quarter rose 24.7 percent to Rs 199 crore over last year. Revenue went up 9.3 percent over the prior year period to Rs 2,021.50 crore.
Air-conditioner maker’s decision to set up $100 million joint venture with Turkey based Arcelik was another major development during the last week. The joint venture will mark Voltas’ foray into consumer durables market in the country.
A sharp increase in positive press coverage during May 2017 helped Voltas to post an 18.5 percent gain in the share price for the month.
Analysis of news coverage for the past 12-months:
#1: Up and down movement in the positive media coverage was perfectly captured in the share price trend for 9-out of 12-months.
#2: News sentiment for Voltas touched the lowest levels in November 2016. Sentiment score remained negative during November last year amid negative media coverage on earnings and ratings (includes both stock and credit ratings). As a result, the stock fell 18.8 percent in November 2016.
#3: Voltas recorded a spike in news volume during May this year. News volume during May 2017 was highest in the past 12-months. Media coverage since February this year was overwhelmingly positive for the air-conditioner maker.
#4: Press coverage for Voltas was dominated by earnings and ratings news for the past 13-months.
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