Tata Stock Hits Fresh High On New Update, Buy For TP Rs 1450: Likely To Outperform Industry

Several brokerages have recommended Tata Group stock Voltas Ltd on the prospects of better earnings and sharp improvement in margin from current cyclically low levels. Last trading price of Voltas Ltd share on BSE is Rs 1318.40 per share with intraday gain of 7.00%. The company on April 7 issued via its BSE filing that it achieved the landmark of highest ever AC sales in FY 2023-24. The Company achieved over 2 million AC units during this fiscal 2023-24, the highest ever sale of ACs by any brand in a financial year in India, with a volume growth of 35%. The performance was attributed to a consistent demand for cooling products during the year, coupled with the company's strong offline and online distribution network, strongest brand equity, and innovative new launches.

3 Top Analysts Give Buy Call: Nomura Research has 'buy' call on Voltas share with the target price of Rs 1,450 per share. Voltas emerged as the preferred pick in the sector and Nomura expects Voltas to outperform the industry. Nomura feels primary AC volumes to be at 7.5 lakh units, pushing a 38% year-on-year growth in unitary cooling products. The projects business is expected to be up 37% YoY due to a low base.

Meanwhile, Citi Research has assigned buy call too and upgraded target price to Rs 1,428 apiece from Rs 1,281 previously. It upgraded the target P/E multiple to 51 times on strong AC demand in India.

HSBC Global Research has also upgraded the target price for Voltas Ltd shares highlighting a surge in the its earnings for the next coming years. The analyst has maintained buy call on Voltas stock with the target price zoomed to Rs 1,350 apiece from Rs 1,250 apiece earlier.

LIC Has Stake: Life Insurance Corporation Of India has 8.29% stake in Voltas with 27,420,913 shares as of December 2023 quarter, according to BSE data. LIC stake was 10.35% for Sept 2023 quarter and the PSU trimmed its holding to 8.29% for December 2023 quarter.

Voltas Share Performance & Return: The 52-week high price of Voltas shares on BSE is Rs 1373.20 per share and 52-week low price is Rs 745.00 per share, respectively. The company's market capitalisation is Rs 43,623.84 crore. Voltas shares zoomed 23% in last 2-weeks only, gave return of 34% year-to-date, gained 48% in last 6-months, and offered return of 58% in last 1-year. In last 3-years, Voltas shares surged 30% and soared 114% in last 5-years.

Voltas Dividend History: Voltas Ltd. declared 24 dividends since June 28, 2001. In last 12 months, Voltas Ltd. announced an equity dividend of Rs 4.25 apiece. If the current share price of Rs 1318.40 per share is taken into consideration, it offers a dividend yield of 0.32%.

About: Voltas offers a comprehensive range of cooling solutions including room air conditioners, air coolers, air purifiers, water dispensers, water coolers, commercial refrigeration and commercial air conditioning products in its portfolio. Voltas is one of the leading companies within the Tata group with a footprint of over 25,000 customer touchpoints. It has also recently launched a range of Voltas Beko home appliances, through its JV in India, in equal partnership with Arcelik.

Disclaimer:

The stock has been picked from the brokerage report of Nomura, HSBC Global Research, and Citi Research. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.