Prabhudas Lilladher's research report on Voltas
We are downgrading our recommendation to ACCUMULATE from BUY given the recent runup in stock price. We attended the analyst conference call of Voltas where the company outlined its growth strategy, emphasizing its focus on outperforming industry trends, optimizing manufacturing capacity, and maintaining a competitive edge through strong distribution and marketing investments. No major price hikes were announced as the company wants to focus on maintaining its market share. Voltas prioritizes volume growth and market share over immediate margin expansion. Voltbek is expected to achieve EBITDA breakeven by early FY26. We estimate revenue/EBITDA/PAT CAGR of 15.0%/19.5%/25.3% over FY25-27E.
Outlook
The stock is currently trading at 45x/37x FY26/FY27E. There is no change in our estimates and we maintain TP of Rs1593, based on 40x FY27E earnings. Downgrading to ACCUMULATE.
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