Buy Voltas; target of Rs 2018: Anand Rathi

Anand Rathi's research report on Voltas

Voltas’ UCP segment continued its strong performance, delivering 31% y/y revenue growth in Q2 and 56% y/y RAC volume growth in H1 FY25. Due to healthy secondary sales, it maintained its leadership in RACs with 21% market share. The EMP business is expected to reclaim growth in H2, led by strong domestic order execution.

Outlook

Voltas Beko’s volumes grew 54% y/y in H1, with market shares expanding for refrigerators and washing machines. We, thus, retain a Buy, with a higher 12-mth Rs 2,018 TP (on raised earnings and rolling forward to FY27).

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