Hold Voltas; target of Rs 1,260: ICICI Securities

hold

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

ICICI Securitie's research report on Voltas

Voltas’ revenue grew 42.1% while EBITDA/PAT declined 12.6%/19.3% YoY. EBITDA margin declined to 4.5% (-284bps YoY) due to higher commodity costs and other expenses. Higher brand-building and distribution spends have likely led to an increase in other expenditure as a percentage of net sales, in our view. Higher effective tax rate and interest cost impacted earnings.

Outlook

While the strong growth in the air conditioner segment is encouraging, profitability of international projects remains a key concern. We raise our FY25E/FY26E earnings by 2.5%/4.3% to factor in strong growth in UCP segment and normalisation in EMP business. Maintain HOLD with a DCF-based revised target price of INR 1,260 (implied P/E: 51x FY26E).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

ICICI_VOLTAS140524