Accumulate Voltas; target of Rs 1980 Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Voltas with a target price of Rs 1980 in its research report dated October 30, 2024.

Broker Research

October 31, 2024 / 12:28 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Voltas

Voltas Ltd (VOLT) reported robust volume growth in the UCP segment, mix of primary & secondary sales, which has also normalized channel inventory. The growth momentum is likely to continue in FY25 and project margins to improve further with a healthy domestic order book and expected improvement in execution. VOLT reported revenue growth of 14.2% YoY led by healthy growth in the UCP segment (+30.9% YoY) even after a weak season. VOLT maintained its market share in RAC (exit market share of 21% by Sep’24 vs 19.5% by Aug’23). UCP segment margins are expected to be maintained at current midhigh single digit level with the introduction of long-term incentive scheme to drive volume and market share. EMPS business is expected to see healthy revenue growth on the back of strong order pickup & execution in domestic project business. Voltas Beko saw volume growth of 54% in H1FY25, with market share gains in refrigerators and washing machines.

Outlook

We estimate FY24- 27E revenue/EBITDA/PAT CAGR of 18.4%/52.9%/76.8%. We upward revise our FY25/FY26/FY27E earnings estimate by 3.1%/2.8%/1.8% factoring in UCP volume growth outperformance. We maintain our ‘Accumulate’ rating at SOTP based revised TP of Rs1,980 (Rs1,945 earlier).

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