Voltas shares fall over 2.5% as Prabhudas Lilladher downgrades stock to 'accumulate'

Voltas shares fall over 2.5% as Prabhudas Lilladher downgrades stock to 'accumulate'

Shares of Voltas Ltd declined over 2% on March 21 after Prabhudas Lilladher downgraded the stock rating to 'accumulate' from 'buy'.

The brokerage firm cut Voltas' rating given the recent sharp rise of the stock.

Prabhudas Lilladher, however, retained the Voltas stock target price at Rs 1,593, which implies 11% upside from the current levels.

At 10:20 am on March 21, Voltas' shares were trading 2.7% lower at Rs 1,430 apiece.

"No major price hikes were announced as the company wants to focus on maintaining its market share. Voltas prioritises volume growth and market share over immediate margin expansion," said Prabhudas Lilladher.

"The company is confident of meeting the increasing demand, but remains cautious about potential demand surges similar to last year. Inventory management and supply chain remain key priorities areas," added the brokerage firm.

Prabhudas Lilladher estimates Voltas' revenue/EBITDA/PAT CAGR of 15%/19.5%/25.3% over FY25-27E. The stock is currently trading at 45x/37x FY26/FY27E.

Meanwhile, Nuvama has reiterated a 'Buy' rating on Voltas, citing strong revenue growth in its Room Air Conditioner segment and the company's focus on absolute profit growth, with a target price of Rs 1,810, implying a 21% upside.