Voltas shares: Up 100% in 1 year, can this Tata stock rise further post Q2 results?

Voltas Ltd reported inline quarterly results, with Q2 top line growth at 14.2 per cent on strong UCP segment sales and Ebitda margin expansion at 313 basis points on cost-control initiatives, favourable product mix and positive margins in the EMPS segment. Analysts are largely neutral-to-positive on Voltas shares after a 100 per cent surge on the counter in the past one year. 

"While we remain structurally positive on Voltas’s long term business prospects, the stock has run up 74 per cent YTDCY24. We maintain HOLD with a revised target price of Rs 1,740. This implies a blended PE of 49x on Sept’26E EPS, which is at 31.5 per cent discount to the 5-year historical average PE on 1-year forward basis," Nirmal Bang said.

MOFSL said the AC segment delivered strong growth during the summer season, and Voltas expects the other appliances business to continue to do well given the ongoing festive period. In the EMPS segment, project execution was hit by heavy rains but Voltas sees the business to return to normal levels going forward.

"We broadly retain our EPS estimates for FY25/FY26. We reiterate our Buy rating on the stock with a target price of Rs 2,070 based on 55 times Sep’26E EPS for the UCP segment, 40 times Sep’26E EPS for the PES and EMPS segments, and Rs 38 per share for Voltbek," MOFSL said.

Nuvama said the Tata group firm gained market share with an impressive 21 per cent exit rate in Q2FY5, reinforcing its industry dominance. Volt-beko, the home appliances business, continued its robust showing with 54 per cent YoY volume growth in Q2FY25, it noted.

"That said, we are tweaking down FY25–27E EPS by 5–7 per cent factoring in Q2 margin performance and outlook. This along with a rollover to Dec-25E yields a target price of Rs 2,140 (50x Dec-26E; earlier target of Rs 1,800); ‘BUY’," it said.