Summer Stock To Buy: Tata Group's Electronic Share To Take Away Heat; Motilal Oswal Sets Rs 1,230 Target

Summer is here and to ease the heat in your Demat account, Tata Group-backed home appliances, cooling electronic stock, Voltas is an attractive bet. Motilal Oswal has recommended buying for a target price of Rs 1,230 apiece, implying a potential of 11.5% upside in the near term.

As per the latest report by Motilal Oswal, Voltas' 3QFY24 performance was below estimates due to higher losses in the EMPS segment. RAC volumes grew 27% YoY, surpassing industry growth, and market share stands at 19% YTD.

However, the brokerage highlighted that Volta's management expects demand for RAC, commercial refrigerators, air coolers, and home refrigerators to improve in the upcoming summer season.

Thereby, Motilal Oswal said, " EPS estimates for FY24/FY25 were cut by 42%/14% due to higher losses in the EMPS segment." It added, " Reiterate BUY rating with a target price of INR1,230."

On BSE, Voltas' share price stood at Rs 1103.55 apiece, up by 0.9% on March 28 with a market cap of Rs 36,514.79 crore.

Voltas Limited established in 1954 is a listed public company and part of the leading Indian multinational Tata Group which has operations in over 100 countries across 6 continents and has more than a million employees.