Voltas gets double upgrade from UBS, stock jumps 5%
UBS upgraded Voltas' rating from 'Neutral' to 'Buy', raising the target price to Rs 1800 from Rs 885 previously. This adjustment suggests an upside potential of 38% from the previous close of Rs 1300.
Following the UBS upgrade, Voltas shares surged by 5% to Rs 1,365 during Monday's trading session on the BSE.
«We believe Voltas will surprise on market share in the room air conditioner (RAC) segment, reaching 23% in FY26E vs 19.5% for consensus. The VoltBek JV should also continue to gain market share, and boost profitability by breaking even in FY26E,» UBS said in a report.
The global investment bank believes Voltas has successfully reworked its supply chain in the RAC segment, further optimizing its cost structure.
UBS suggested that matching Voltas' reduced costs would be challenging for recent new entrants, potentially leading to industry consolidation and market share gains for Voltas.
Regarding the VoltBek JV (Voltas white goods JV with Beko), UBS anticipates improving traction in market share, with a potential turnaround in the bottom line by FY26E. The brokerage expects incremental revenue of Rs 10,000 crore (60% of FY27E revenue) in the consumer electronics segment by FY27E.
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At 11:12 am, the stock was trading 4.6% higher at Rs 1,360 on the BSE. Year-to-date, the stock has surged nearly 40%, and over the past six months, it has recorded a gain of 66%.
In its Q4 business update earlier this April, Voltas reported a remarkable 35%
