The brokerage believes Voltas could benefit the most among consumer durable stocks in the near-term due to:
- A likely normal summer in 2026 based on early weather forecasts. As much as 70% of the company’s revenues are contributed by summer-linked products.
- Pent-up demand and a low base.
- Cost tailwinds.
The analyst has forecast a sharp earnings rebound of 44% compound annual growth rate (CAGR) over FY26-28, on a low base.
Q3 set to be soft
Voltas shares have corrected by 23% over the past year, primarily due to weak demand following an unusually mild summer, heightened competitive intensity and elevated channel inventory levels, BofA Securities said.These factors weighed on its volumes and margins, resulting in earnings downgrades of 44% and 25% for FY26 and FY27, respectively, compared to an estimated 23% earnings decline in FY26. The company’s valuations have also corrected by 16% during this period, it said.
The analyst said it expects the December quarter to remain subdued due to seasonality, but believes the weakness is largely priced in.
Of the 41 analysts who have coverage on the stock, 17 have a “buy” rating, 18 have a “hold” rating and six have “sell” ratings.
Shares of Voltas have given up early gains, currently trading 0.7% higher at ₹1,389.8. The stock is down 24% so far in 2025.
Also Read: Hero MotoCorp shares fall after Jefferies downgrade, price target cut
