Voltas Eyes Sequential Recovery Amid Market Challenges; Nirmal Bang Maintains 'Hold', Revises Target Price 

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Nirmal Bang Report

We maintain a Hold rating with a revised target price of Rs 1,361, implying a blended P/E multiple of 47 times on FY27E EPS.

Ongoing market share losses, high inventory, and margin pressures overshadow any potential benefits from strategic initiatives, limiting confidence in meaningful value creation over the medium term.

Voltas, the market leader with an 18% share in the Room Air Conditioners segment, is looking to strengthen its position by expanding its premium portfolio—introducing 5-star, IoT-enabled, smart, and AI-based models—while maintaining focus on the 3-star category.

However, progress on premiumization has been relatively slow compared to peers, and execution in expanding distribution remains patchy, limiting near-term benefits. Even with the upcoming BEE norm changes effective January 1, we believe Voltas may not be best placed to capture incremental demand, as competition appears better positioned in high-growth categories.

In commercial refrigeration, the company continues to pursue cost-efficiency measures and is targeting 15–18% growth, but despite these efforts, visibility of a near-term upside in RAC remains weak, keeping the overall outlook muted.

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