Stock To Buy: Tata Stock Rises 6.82% After UBS Upgrades To Buy From Neutral, TP Rs 1800

Tata Group stock Voltas Ltd shares rallied 6.82% at the time of writing the story after international brokerage firm UBS upgraded it to buy from neutral amid strong growth prospects. Current market price of Voltas share on BSE is Rs 1389.15 apiece on BSE. The company has a market capitalisation of Rs 45,964.85 crore. Voltas shares have already surged 70% in last 6-months and 702% in last 10-years. The leading brokerage house has more than doubled the target price of Voltas shares from Rs 885 to as high as Rs 1800, implying a potential return of 29.58% if traders decide buy Voltas shares at current market price of Rs 1389.15 apiece.

The broader market share of Voltas Ltd is expected to surge to 23% in financial year 2026. Life Insurance Corporations of India (LIC) has a considerably high stake in Voltas with 7.21. The PSU insurer held 23,849,058 shares of the company. The stock has high

Reports stated the Voltas' joint venture (JV) with Turkey's Arcelik may offer massive boost to the profitability and market share as it is likely to break even in financial year 2026. According to UBS, "We expect an incremental revenue growth of Rs 10,000 crore, a 60 percent of FY27 revenue in consumer electronics." Earlier in 2017, the two firms established a $100 million JV to debut in the country's consumer durables market. The JV known as Voiltbek in engaged in the manufacturing of washing machines, refrigerators, and microwave, among others in India. Voltas and Arelik hold 49% in the JV and their respective parent companies namely Tata Group and KOC Holding hold 1% each, as per reports.

Voltas Share Performance: The 52-week high price of Voltas share on BSE is Rs 1395.00 apiece (as on 22/04/2024) and 52-week low price is Rs 745.00 per share (as on 14/07/2023), respectively. Voltas has a PE of 75.43 and EPS (TTM) of 2.94. Voltas shares soared over 8% in last 1-week only, gained 30% in last 1-month, and offered return of 62% in last 1-year. In last 2-years, Voltas stock surged 11% and 48% in last 3-years.

Voltas Dividend History: Voltas Ltd. declared 24 dividends since June 28, 2001. In last 12 months, Voltas declared an equity dividend of Rs 4.25 apiece. If the current share price of Rs 1389.15 per share is taken into consideration, it offers a dividend yield of 0.31%.

Voltas Technical: Score is 72.12 indicating the stock is technically strong. Stocks with score above 70 are considered as technically strong. RSI is 69.0, RSI below 30 is considered oversold and above 70 overbought. At 60.2, MACD is above its center and signal Line, this is a bullish indicator. Mutual Funds have increased holdings from 18.81% to 24.17% in Mar 2024 quarter. Number of MF schemes zoomed from 32 to 34 in March 2024 quarter. FII/FPI have decreased holdings from 17.18% to 14.71% in Mar 2024 quarter, according to Trendlyne.

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 UBS. 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.