Citi has reiterated its buy rating on Voltas with a target price of ₹1,800 after its analyst day, highlighting management’s focus on regaining sales momentum in its unitary cooling products (UCP) division and strengthening its market share in the room air conditioner category. The company also emphasised diversification of its product portfolio across verticals and driving sustainable margins through aggressive cost initiatives.
On the business outlook, Citi noted that primary sales remain soft, weighed down by higher channel inventory and deferred purchases following the GST rate cut. However, management expects margins to improve from the fourth quarter onwards, with channel support likely to extend until the third quarter. The brokerage said the company’s strong brand equity, distribution reach, and diversification strategy should help Voltas sustain long-term growth despite near-term demand challenges.
Disclaimer: The views and recommendations made in this article are those of Citi. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
