Voltas To Focus On Volume, Market Share, Says ICICI Securities Maintaining 'Add' Rating On The Stock

Voltas has decided to focus on volume growth and regaining lost market share. It has stepped up its investments in ATL spends, sales team and merchandisers. While there are longer-term benefits, the expenditure may slightly weigh on margins in near term..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. .ICICI Securities Report.We attended Voltas Ltd.’s investor update webinar and note: It is focusing on volume growth, and air conditioners are likely to report volume growth of 20-25% YoY in Q4 FY25 (our view).There may be additional investments in brand building, additional salesmen and merchandisers which may impact margin in near term but these investments are DCF accretive.Other sub-segments such as air cooler / commercial air conditioning are growing at ~80% / ~15% YoY.India’s air conditioner industry is ~14 million whereas domestic capacity to manufacture compressors is ~8 million. Hence, there is high probability of relaxations in norms to import compressors. Voltas has largely done investments in sourcing of compressors and may not be affected more than industry in case of shortage of compressors in CY25.It has made investments to expand distribution of Voltbek from 7,000 outlets in FY24 to 12,000 now (Voltas distribution: 30,000 outlets). .We trim FY26-27E earnings by 3.8-3.9% to factor in higher focus on volumes and likely impact on margins. We remain positive on Voltas and maintain Add..Click on the attachment to read the full report:.'Buy' Voltas Maintains Motilal Oswal, Target Of Rs 1710 — Here's Why .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 To Focus On Volume, Market Share, Says ICICI Securities Maintaining 'Add' Rating On The Stock

The brokerage trims FY26-27E earnings by 3.8-3.9% to factor in higher focus on volumes and likely impact on margins and remains positive on Voltas and maintain Add.

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