Shares of Voltas Ltd are up 10 per cent in five sessions amid a broader market rally. The stock has recently come out of a consolidation zone and is looking strong on technical chart, even as fundamental analysts largely have 'Hold' rating on the stock despite factoring in healthy December quarter results for the Tata group firm. One technical analyst believes that the stock could hit Rs 1,050 level in the short to medium term.
Nuvama recently conducted channel checks across electricals & durables categories and regions to gauge how the Q3FY24 performance may shape up. It said Voltas has done well in Q3 with price actions in some regions. In the AC segment, "dealers suggested Voltas is starting to fight back for market share and checks suggest double-digit growth for Voltas’s RAC segment (margins remain under pressure)."
In another recent note, InCred Equities said Voltas expects margin expansion in the coming quarters, led by softening commodity prices, manufacturing efficiency and value engineering initiatives. That said, the brokerage has has a 'Hold' rating on Voltas. Motilal Oswal Securities has a target of Rs 855 on the scrip. Kotak Institutional Equities, in fact, has a 'sell' rating on Voltas with a fair value of Rs 770 level.
On the technical chart, however, Voltas has given a strong breakout from Rs 910-920 odd level. It came out from a consolidation zone from a broader time frame, said Osho Krishan - Senior Research Analyst at Angel One, who sees the stock hitting Rs 1,050 in the medium term.
In an interview to BT TV, Krishan said one can accumulate the stock for a higher target. Any dip towards Rs 910-915 should augur well for the bull. "One should look to average the stock around Rs 915 level. For momentum traders, they can try to accumulate the stock at around Rs 940 for the immediate target of Rs 965.
Recently Voltas was in news amid media reports claiming that its parent company Tata Group was considering selling its home appliance business. The company, later said the reports were “totally incorrect and blatantly false, with no factual basis whatsoever.”
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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