Voltas shares hit record high after robust Q4 business update; should you buy the stock?

Voltas share price target, Voltas share price today: At a time when Tata Group stocks are gaining huge investor focus amid the launch of an index solely dedicated to the behemoth Tata Group, shares of Voltas hit an all-time high on D-Street on Monday, April 8, in early morning deals. The Voltas stock hit an all-time high of Rs 1,373.2 on BSE in morning deals. The counter closed at Rs 1,307, up 6.07 per cent higher on BSE. 

The buying in Tata Group stocks follows after the leading residential air conditioner maker, Voltas, released its Q4 update on Sunday, April 7.

Voltas Q4 updates

It has recorded a 35 per cent sales growth to over two million units in FY24, becoming the first company in the domestic market to cross this mark. The performance was attributed to a consistent demand for cooling products during the year, coupled with a strong offline and online distribution network and new innovative launches, the Tata Group firm said in a statement.

"The company achieved over 2 million AC units during this fiscal 2023–24, the highest ever sale of ACs by any brand in a financial year in India, with a volume growth of 35 per cent," it added. With these landmark sales, Voltas is "the first ever brand to achieve this extraordinary milestone in the air conditioning industry in India,"  it said.

The Indian residential AC market is estimated to be around 10 million units in FY24 and is expected to grow to 11.5 million units this year. Even during the March quarter, when sales of compressor-based cooling products are low due to convenient temperatures, "Voltas registered a significant volume growth of 72 per cent in AC sales during Q4 FY24".

The company claimed that with these sales numbers, "Voltas is the undisputed market leader and has maintained its number one position in the room air conditioner category.".

The company's MD and CEO, Pradeep Bakshi, said, "We believe that our wide presence, focus on emerging retail channels, excellent distribution network, strong brand equity, and attractive consumer offers have helped us achieve this significant milestone."

Voltas is now further expanding its retail and distribution network to cater to its growing product portfolio. "The company registered a significant growth in volume in other cooling products, including air coolers and commercial refrigeration products," said Voltas. Besides, its home appliances brand Voltas Beko, a joint venture with Turkish appliance maker Arcelik, also achieved the milestone of selling close to 2 million units in FY24. "Overall, 5 million consumer products got sold to happy customers across the country by Voltas in FY24," it said.

Voltas share price target

Nomura has maintained a buy on Voltas. The brokerage has raised the target to Rs 1,450 from Rs 1,311. The revised target implies a 19 per cent upside from the previous close.

In addition, Morgan Stanley has retained an equal-weight call with a target of Rs 1,160.

(with agency inputs)

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