Voltas stock gains 5% as UBS raises it to a "buy" rating with a 38% upside

Voltas stock gains 5% as UBS raises it to a "buy" rating with a 38% upside

The business anticipates that its joint venture (JV) with Arcelik of Turkey would increase profitability and market share as it approaches break-even in FY26.

In early trading on April 22, Voltas Limited shares increased 5% to Rs 1,365 as a result of UBS upgrading the company rating from "neutral" to "buy" due to strong growth potential.

With a price goal of Rs 1,800, the foreign brokerage more than quadrupled from Rs 885, suggesting a huge upside potential of more than 38% of Rs 1,300. Analysts predict that the company's market share in the room air conditioner category will "surprise." Additionally, the company's overall market share is probably going to increase to 23% in FY26.

As it is about to break even in FY26, the company's joint venture (JV) with Arcelik of Turkey is anticipated to increase market share and profitability. "We anticipate an additional Rs 10,000 crore in sales growth, or 60% of consumer electronics revenue in FY27.

The two businesses established a $100 million joint venture in 2017 in an effort to enter the nation's consumer durables industry. The joint venture, Voiltbek, manufactures a range of home appliances in India, including microwaves, washing machines, and refrigerators. In the joint venture, Voltas and Arçelik each own 49% of the shares, while their parent businesses, Tata Group and Koç Holding, own 1% apiece.

Voltas was up 3.2 percent from the previous close on the NSE at 9:41 a.m. trading at Rs 1,341. Since the year's beginning, the share price has increased by 33%.