AMN
Voltas share price jump rose over 4 per cent in morning trade on BSE today as domestic brokerage firm Motilal Oswal Financial Services reinitiated coverage on the stock with a buy rating, pegging the target price of ₹1,000, implying a 15 per cent upside potential in the stock.
The stock opened at ₹893.45 against the previous close of ₹866.50 and rose 4.10 per cent to hit the intraday high of ₹902.05 in trade so far. Around 10:30 am, the stock was 3.40 per cent up at ₹896 on BSE.
The main concern about Voltas is the loss in market share in the major room air conditioner segment. However, Motilal Oswal is positive that Voltas should be able to bring back some of that market share over the next couple of years.
Voltas maintains industry-leading margins in the Unitary Cooling Products segment due to significantly lower advertising and sales promotion expenses compared to peers. In FY23, Voltas spent only 0.7 percent of revenue on advertising, while Blue Star and Havells allocated 0.9 percent and 2.6 percent, respectively. Similarly, Voltas’ sales promotion expenses, including commission on sales, were at just 0.1 percent, in contrast to Blue Star’s 0.9 percent and Havells’ 0.7 percent in FY23.
The stock was up 2.11 percent at Rs 885, at 9.45 am, on September 6 on the National Stock Exchange.
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