Shares of Voltas Ltd dropped over 2.7% on March 21 after brokerage firm Prabhudas Lilladher downgraded the stock from ‘Buy’ to ‘Accumulate’ due to its recent sharp rally.
Voltas Share Price Dip Over 2.5% as Prabhudas Lilladher Downgrades Rating to ‘Accumulate’
Despite the downgrade, the firm retained its target price at ₹1,593, implying an 11% upside from current levels. At 10:20 AM, Voltas’ shares were trading at ₹1,430 apiece, reflecting a 2.7% decline for the day.
“No big price increases were announced since the corporation wants to preserve its market dominance. “Voltas prioritizes volume growth and market share over immediate margin expansion,” stated Prabhudas Lilladher.
“The corporation is confident in meeting rising demand, but is concerned about future demand surges similar to last year. Inventory management and supply chain remain top objectives, according to the trading business.
Prabhudas Lilladher predicts Voltas’ revenue/EBITDA/PAT CAGR of 15%/19.5%/25.3% for FY25-27E. The stock is now trading at 45/37x for FY26/FY27E.
Meanwhile, Nuvama has retained its ‘Buy’ recommendation on Voltas, noting robust revenue growth in its Room Air Conditioner category and the company’s focus on absolute profit growth, with a target price of Rs 1,810, representing a 21% increase.
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