Coldplay: Many bets on Voltas share price
₹1050, trailed by Motilal Oswal. Voltas is now trading around ₹820. Apart from government incentives in the sector, hotter summers, rising incomes, aspirations, easy financing schemes “are anticipated to drive growth," said analysts at Motilal Oswal.
Voltas, after a stellar run to lifetime high of ₹1356 on October 19 2021 - when the Nifty and Sensex hit 18604.45 points and 62245.43 points, respectively - lost ground. It fell more than 40%. Sensex is now at 65,400 levels.
Voltas is industry leader in multiple segments. It ceded market share to Blue Star, Daikin and Lloyd in recent quarters, after an increase to 25.2% in 2021 from 20.8% in 2015. In a media interview early September, billionaire Chairman Noel Naval Tata said Voltas will focus on increased capital allocation, faster decision making and stronger leadership.
It is currently led by Pradeep Bakshi. The company’s cash flow took a hit in 2023 from lower earnings and higher working capital requirement. It consolidated domestic projects business and the holdings in international subsidiaries.
Voltas, a strong brand in India, spends paltry on ads. The firm’s ad spend was 1% compared to 2.7% for Blue Star and 5% for Lloyds. It had revenues of $1.2 billion in 2023, assets worth $1.3 billion and 1700 employees.
HDFC Securities is bearish. Their institutional research team has a sell call target of ₹775. “Although Voltas continues to focus on recovering its lost market share, recovery will be tough as well as slower," HDFC report cited.
Voltbek, a joint venture between Voltas and Turkey’s Ardutch B.V. had set up manufacturing facility in Sanand, Gujarat. The JV targets to increase production capacity 150% by 2025.
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