Voltas shares hit record high, cross Rs 1,600 mark for first time; what brokerages say

Shares of Voltas Ltd hit their record high on Monday amid a price target upgrade by brokerage UBS. The stock hit the Rs 1,600 mark for the first time ever today. UBS has assigned a buy call on Voltas stock. The brokerage raised its price target to Rs 1,960 per share. It said the firm has  strengthened its position in the room AC segment. For Q2, the management said it generally remains a lean period.

The brokerage said Voltas remains optimistic on demand for Voltbek products in Q3FY25 led by festive spend.

CLSA has assigned an underperform call on the stock and raised its price target to Rs 1,310 per share. The brokerage said Q1 was exceptionally strong and the company was able to regain some of the lost market share. 

Although margins have been soft in projects, with no provisions, margins have bounced back but guidance remains unchanged. the company logged a market share increase in appliances JV. Perfromance in Voltas Beko segment has been encouraging with RAC segment implying a valuation Of 58 times FY26 P/E.  CLSA sees limited re-rating potential in the Voltas stock. 

In the current session, shares of Voltas zoomed 5.06% to a record high of Rs 1611.80 in the afternoon session on Monday. 

Market cap of the firm climbed to Rs 53,257 crore. Voltas stock opened higher at Rs 1547.10 today.

Voltas shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The large cap stock has gained 98.25 per cent in a year and gained 64.25 per cent in 2024.

Total 3.19 lakh shares of the firm changed hands amounting to a turnover of Rs 50.87 crore on BSE. 

The company reported a 160% rise in consolidated net profit at Rs 335 crore in the April-June quarter against Rs 129 crore proifit in the same period last year. Revenue from operations climbed 46.5% to Rs 4,921 crore in Q1. However, expenses rose to Rs 4,520 crore in the last quarter against expenses of Rs 3,196 crore jump in inventory and material costs.

EBITDA rose 129% to Rs 424 crore in the June quarter against Rs 185 crore in the Q1 of previous fiscal. Operating margin climbed to 8.6% in Q1 against 5.5% in the first quarter of previous fiscal.