Voltas Gets 'Neutral' Rating From Motilal Oswal Amid Inventory Overhang, Demand Uncertainty — Details Inside

Looking ahead, Voltas’ financial trajectory appears promising on a low base. The report projects revenue/Ebitda/PAT CAGR of 13%, 34%, and 41% over FY26–28, supported by improved operating leverage and margin recovery in the unitary cooling products segment..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Motilal Oswal has reiterated its 'Neutral' rating on Voltas Ltd. with an unchanged target price of Rs 1,390, implying a marginal downside from the current market price of Rs 1,402. The brokerage notes that while structural drivers for room air conditioners remain intact, near-term challenges persist due to elevated channel inventory and muted demand trends..Valuation and viewManagement is confident of a positive demand outlook, citing strong growth divers (GST reduction increasing affordability, low penetration, robust demand expected from tier II- IV cities and energy label changes). It is also expanding its capabilities in centrifugal chillers. India’s manufacturing expansion, including significant investment by large conglomerates, is creating stable project demand opportunities. Meanwhile, the upcoming energy label changes and the summer season are expected to act as critical catalysts for a rebound in cooling product demand, highlights the brokerage.Looking ahead, Voltas’ financial trajectory appears promising on a low base. The report projects revenue/Ebitda/PAT CAGR of 13%, 34%, and 41% over FY26–28, supported by improved operating leverage and margin recovery in the unitary cooling products segment. UCP margins are expected to strengthen in H2 FY26 and FY27 as demand rebounds and cost optimisation initiatives take effect. .Click on the attachment to read the full report:.Aditya Birla Real Estate Rated 'Buy' As Motilal Oswal Initiates Coverage— Check Target Price, Potential Upside.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Voltas Gets 'Neutral' Rating From Motilal Oswal Amid Inventory Overhang, Demand Uncertainty — Details Inside

While Voltas' structural drivers remain intact, near-term headwinds and elevated valuations justify a Neutral stance, says Motilal Oswal.

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