Voltas shares up nearly 2% on analyst upgrades; Nomura, UBS boost target prices

Voltas shares increased 1.75% to ₹1,562.00 as of 10:25 am today, following positive analyst assessments of the company’s performance and outlook. Nomura maintained a “Buy” rating with a target price of ₹1,857, citing strong growth prospects and margin tailwinds. They raised their FY25 revenue growth forecast for the Unitary Cooling Products (UCP) segment to 30% year-on-year.

UBS also issued a “Buy” rating, increasing their target price to ₹1,960, based on Voltas’ strengthened position in the Room AC segment and optimistic demand outlook for Q3FY25. However, other analysts expressed caution. Morgan Stanley kept an “Equal Weight” rating with a ₹1,225 target, while Kotak Institutional Equities recommended “Sell” with a ₹1,100 target, citing limited margin expansion potential and intense competition.

CLSA maintained an “Underperform” rating, raising their target to ₹1,310, but noted limited re-rating potential due to high valuations. The company’s management expects Q2 to remain lean but anticipates improved demand in Q3 FY25, driven by festive spending. Analysts will closely monitor Voltas’ market share, margins, and order sustainability in the coming quarters.