Jefferies has reaffirmed its ‘buy’ stance on Voltas, setting a target price of ₹1,990 per share. The brokerage noted that after a 25% year-to-date decline, Voltas is now trading at 40x FY26 PE, which is at a discount to its historical 5-year average.
Key insights:
- 9MFY25 leadership market share remains steady at 21% in the RAC segment.
- Past 20 quarters analysis indicates that Q4 RAC market share tends to dip but recovers beyond 20% thereafter.
- Q4FY25 growth is expected to normalize versus 9MFY25 due to a high base effect from last year.
- Air conditioner (AC) industry is likely to be well-stocked in compressors to cater to a 25-30% YoY surge in demand this summer.
At the time of assessment, Voltas’ share price was trading at ₹1,394.00.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult a financial expert before making any investment decisions.
