Voltas, a leading air conditioner manufacturer, saw its shares drop nearly 3% after an analyst group meeting, where brokerages expressed concerns over subdued demand. The shares fell to Rs 1,364.50 apiece, the lowest level in four sessions, before closing 2% lower at Rs 1,372.60.
Brokerages such as HDFC Securities and Antique Stock Broking expect demand to remain subdued in the third quarter, citing cost pressure and elevated channel inventory. However, some brokerages, like Nirmal Bang, believe that volume pressures are easing, and operations will likely normalize from the fourth quarter.
Domestic brokerages have shared their views on the stock. JM Financial said that Voltas is “getting comfortable, not cosy” and increased its target price to Rs 1,450 per share, while maintaining an ‘Add’ rating. Motilal Oswal Financial Services kept a ‘Neutral’ rating with a target price of Rs 1,390 per share. Elara Capital has an ‘Accumulate’ rating with a target price of Rs 1,440 per share.
The company’s near-term outlook remains cautious due to factors like higher input costs, a depreciating rupee, and continued channel support. However, there are multiple levers to drive demand, including a potential GST rate cut and energy label changes. The stock has fallen over 2% in the past month and around 25% in 2025 so far.
Remember, this is a perspective, not a prediction. It's essential to do your own research and consider multiple viewpoints before making any investment decisions. The Indian stock market can be volatile, and it's crucial to stay informed about market trends and industry news to make informed decisions.
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