Morgan Stanley has reiterated its ‘Overweight’ rating on Voltas, with a target price of ₹1,975, implying a potential 33.6% upside from its current market price of ₹1,478.00.
The brokerage noted that lower margins in the Unitary Cooling Products (UCP) segment have led to a miss, primarily due to heightened competitive pressures. However, it highlighted that Voltbek has gained market share in refrigerators and washing machines, signaling resilience in the consumer durables business.
Additionally, Voltas’ board has approved the appointment of Mukundan Menon as the new MD, effective from September 1, as Pradeep Bakshi is set to step down from his MD and CEO role.
Despite near-term headwinds, Morgan Stanley remains optimistic about Voltas’ long-term potential, citing its strong market positioning and expected recovery in margins.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Neither the author nor Business Upturn is liable for any losses arising from the use of this information.
