Voltas shares slipped 24% in 2025 so far; what's next for this stock amid summer demand?

Shares of Voltas Ltd declined 1.81 per cent in Friday's trade to hit a low of Rs 1,379.70. Last checked, the stock was down 0.66 per cent at Rs 1,395.80. At this price, it has corrected 23.52 per cent on a year-to-date (YTD) basis.

So, is this an entry opportunity for investors as the summer demand for air conditioners (ACs) may pick up from March onwards? Atul Parakh, CEO of Bigul, believes so, citing benefits for the company from growing demand for cooling solution products. With that being said, the market expert sees competition from international players and raw material cost fluctuations as potential risks for the homegrown company.

"Voltas' robust distribution network and partnerships with global brands enhance its market position. It benefits from a growing demand for cooling solutions. However, competition from international players and fluctuations in raw material costs pose challenges. The company's focus on innovation and energy-efficient products is expected to drive future growth. Overall, Voltas is well-positioned to leverage India's growing infrastructure and consumer markets," Bigul stated.

In terms of earnings, the firm posted a net profit of Rs 132 crore in the December 2024 quarter (Q3 FY25) as against a Rs 30 crore loss during the corresponding period last fiscal. Revenue from operations climbed 18 per cent year-on-year (YoY) to Rs 3,105 crore from Rs 2,626 crore revenue from operations in Q3 FY24.

On the technical play, near-term support could be seen in the Rs 1,363-1,350 range. Resistance may be found in the Rs 1,445-1,550 zone.

Osho Krishan, Senior Research Analyst (Technical & Derivatives) at Angel One, said, "Voltas has seen a strong resurgence from the lows of Rs 1,200-1,180 zone. For now, Rs 1,350 is expected to cushion any short-term blips, while a series of resistance is seen at Rs 1,450-1,550 levels in the near term."

Sebi-registered research analyst AR Ramachandran said, "The stock has a strong resistance at Rs 1,445 level. A daily close below the support of Rs 1,363 could lead to a downward target of Rs 1,250 in the near term."

Technically, the counter traded higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 53.56. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 61.72 against a price-to-book (P/B) value of 5.81. Earnings per share (EPS) stood at 22.56 with a return on equity (RoE) of 9.42.

As of December 2024, promoters held a 30.30 per cent stake in the company.