ICICI Securities maintains an ‘Add’ rating and unchanged Rs 1,400 target as Voltas reports a robust June quarter driven by increased demand and better profitability, sparking renewed broker interest amid cautious market sentiments.
Voltas drew renewed broker interest after ICICI Securities kept its “Add” rating and left its target price unchanged at Rs 1,400, citing a strong June-quarter showing. The brokerage said the latest numbers reflected robust demand for room air-conditioners, market-share gains and better profitability, helped by a strong summer and improved operating leverage, according to NDTV Profit’s report on the note.
The upbeat view comes against a more cautious backdrop elsewhere in the market. HDFC Securities has also stayed positive on Voltas, with an “Add” call and a target of Rs 1,430, but it flagged a slower recovery in growth because of high channel inventory and cost pressure. That brokerage expects improvement later, while noting that the project business and Voltas Beko division are showing traction.
ICICI Securities’ stance is also consistent with its broader emphasis on volume and market-share expansion. In an earlier note carried by NDTV Profit, the brokerage said it had trimmed earnings estimates for the next two financial years to reflect a heavier focus on volumes and the likely pressure on margins, but still saw the long-term case for the stock as intact.
The latest reassessment reflects how sharply Voltas’ operating picture can swing with the summer season and inventory cycles. Earlier reports cited weaker product sales, lower plant utilisation and trade-stock issues as reasons for a more subdued outlook, even as the company kept its lead in room air-conditioners and continued to gain ground in the Voltas Beko business.
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