Voltas Shares Upbeat As Brokerages Raise Targets On The Back Of Strong Q1 Print

Voltas‘ share price was upbeat on Monday morning as most brokerages remained bullish on the stock and raised target prices. The stock surged 4% to hit an intraday high of ₹1,597.65, close to its 52-week high of ₹1,598.90.

What Happened: The Tata Group company reported a consolidated net profit of ₹334.23 crore for the quarter, a 158% increase from ₹129.29 crore in the same period last year. Revenue from operations reached ₹4,921 crore, up around 46% from ₹3,335 crore in the previous year's quarter.

Voltas continued to lead the market in both split and window air-conditioners, maintaining a 21.2% market share as of June 2024.

Brokerage Views: UBS reiterated its “buy” rating on Voltas with a target price of ₹1,960. The firm highlighted that Voltas has strengthened its position in the room AC segment. While Q2 is generally a lean period, the consumer durable company remains optimistic about demand in the September quarter, driven by festive spending, the analysts said.

Nomura also maintained its “buy” rating on the stock, raising its target price to ₹1,857 from ₹1,511, citing strong Q1 results, particularly in the project business, which showed healthy profitability.

The growth outlook remains positive, with margin tailwinds in place, Nomura said, noting that Voltas received favourable legal results related to FY23 provisions but remains cautious on new orders.

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Nuvama also reiterated its “buy” rating on the stock, raising the target price to ₹1,800 from ₹1,510. The brokerage said the company’s robust revenue growth helped drive an earnings beat in the June quarter. The research firm highlighted the company’s strong balance sheet and strategic capacity expansion, which position it well to capitalise on favourable market opportunities.

Motilal Oswal also maintained its “buy” rating for the stock with a price target of ₹1,800. The company raised its earnings per share estimates for Voltas by 19% and 4% for FY25 and FY26, respectively, led by the strong performance in the June quarter.

CLSA maintained an “underperform” rating on the Tata Group stock with a price target of ₹1,310, citing that while Q1 was exceptionally strong, with some regained market share, margins remained soft. The project segment saw a bounce back in margins due to the absence of new provisions, but overall guidance remains unchanged.

Morgan Stanley maintained an “equal-weight” rating with a target price of ₹1,225 on Voltas as it finds the company’s margins in the AC business disappointing.

Price Action: Voltas’ share price was up 2.13% to trade at ₹1,567.90 as the markets opened on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.