Hold Voltas; target of Rs 1598: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Voltas with a target price of Rs 1598 in its research report dated August 16, 2024.

Broker Research

August 19, 2024 / 13:51 IST

hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Voltas

VOLT reported rev. growth of 46.5% YoY in Q1FY25 led by healthy growth across segments; UCP/EMPS/EPS grew by 51.2%/39.8%/13.0% YoY. Its market share in RAC segment improved 19.5% YTD (vs 18.7%/19% in Mar’24/Dec’23), buoyed by a strong summer, which led to robust volume growth (+67% YoY). Voltas Beko saw 50% volume growth, outperforming the industry. The company expects healthy vol. growth in RAC/UCP to continue in Q3/Q4FY25 led by low channel inventory and strong festive demand, and UCP margins to remain at high single digits. EMPS business is expected see healthy revenue growth on the back of strong order pickup & execution in domestic project business. We estimate FY24-26E revenue/EBITDA/PAT CAGR of 18.9%/65.9%/104.8%. Upgrade to ‘HOLD’.

Outlook

We upward revise VOLT FY25/26E earnings by 18.4%/16.9% factoring in robust growth in UCP segment and significant reduction in channel inventory, with growth momentum expected to continue in FY25. Additionally, improvements in project margins and a favorable arbitration outcome in the project business are anticipated to further enhance margins. We roll forward our TP to Jun’26 and upgrade the stock to ‘HOLD’ from ‘REDUCE’ at SOTPbased revised TP of Rs1,598 (Rs1,293 earlier).

For all recommendations report, click here