This Tata Group stock, engaged in designing, manufacturing, and selling a wide range of cooling and home appliances, including air conditioners, refrigerators, and air coolers, is in focus after UBS gave a target of Rs.1,725, which has an upside potential of up to 34 percent.
With a market capitalization of Rs. 42,677.51 crore, the shares of Voltas Limited closed at Rs. 1,289.80 per equity share, down nearly 0.22 percent from its previous day’s close price of Rs. 1,292.60.
UBS, a prominent brokerage firm, has recommended a “Buy” call on Voltas Limited with a target price of Rs. 1,725 per share, indicating an upside potential of 33.74 percent.
UBS has kept its target for Voltas unchanged, stating that the effect of the early monsoon on sales is already reflected in the stock price. Despite softer demand, product pricing remains steady, with the company introducing more value-added features. Voltas is continuing with its planned capital investments, and the VoltBek joint venture is showing strong performance.
UBS also believes that the Room Air Conditioner (RAC) segment will stay among the fastest-growing, although the growth may not follow a straight path. These reasons support UBS’s confidence in Voltas’ future prospects.
Voltas Limited is an Indian multinational company headquartered in Mumbai, primarily known as India’s largest air conditioning company by market share and a premier provider of engineering solutions. Established in 1954 as a collaboration between Tata Sons and Volkart Brothers, Voltas has grown into a major player in home appliances and engineering services.
As of the end of March 2025, Voltas maintained a leadership position in the Indian air conditioner market with a year-to-date market share of approximately 19 percent.
The company designs and sells a variety of products like air conditioners, air coolers, refrigerators, washing machines, dishwashers, and more. It is known for launching India’s first room air conditioner and using advanced technologies like DC-inverter motors for better energy savings and cooling.
In 2024-25, Voltas reached major milestones, becoming the first brand to sell over 2.5 million AC units and more than 0.5 million air coolers. Its commercial AC business showed steady growth, while Voltas Beko crossed 1 million sales in refrigerators and washing machines, emerging as India’s fastest-growing home appliance brand.
Voltas has multiple offices and service centers across India and abroad, including in the UAE, Oman, Qatar, Saudi Arabia, and Singapore, supporting its global operations.
Coming into financial highlights, Voltas Limited’s revenue has increased from Rs. 4,203 crore in Q4 FY24 to Rs. 4,768 crore in Q4 FY25, which has grown by 13.44 percent. The net profit has also grown by 112.61 percent, from Rs. 111 crore in Q4 FY24 to Rs. 236 crore in Q4 FY25.
Voltas Limited’s revenue and net profit have grown at a CAGR of 15.01 percent and 9.87 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 17.9 percent and 13.5 percent, respectively. Voltas Limited has an earnings per share (EPS) of Rs. 25.4, and its debt-to-equity ratio is 0.14x.
Written By – Nikhil Naik
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