Shares of Voltas Limited jumped 5 percent to Rs 1,365 in early trade on April 22 after UBS upgraded the stock recommendation to 'buy' from 'neutral' on robust growth prospects.
The international brokerage more than doubled the price target from Rs 885 to Rs 1,800, indicating a massive upside potential of over 38 percent of Rs 1,300. Analysts suggest that the company will 'surprise' on market share in the room air-conditioner segment. The broader market share of the company is also likely to rise to 23 percent in FY26.
The company's joint venture (JV) with Turkey’s Arcelik is expected to boost the market share and profitability as it is poised to break even in FY26. "We expect an incremental revenue growth of Rs 10,000 crore, a 60 percent of FY27 revenue in consumer electronics.
In 2017, the two companies set up a $100-million joint venture to foray into the country’s consumer durables market. The JV, named Voiltbek, makes refrigerators, washing machines, microwaves, and various domestic appliances in India. Both Voltas and Arçelik hold 49 percent in the joint venture while their parent companies (Tata Group and Koç Holding) hold 1 percent each.
At 9:41 am, Voltas was trading at Rs 1,341, up 3.2 percent from the previous close on the NSE. The shares have risen 33 percent since the start of the year.
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