Jefferies has expressed confidence in the Indian air conditioner (AC) market, especially highlighting Voltas as a top pick for future growth. Despite a slower start to the year due to unusual weather patterns affecting AC demand, Jefferies has maintained a buy rating on Voltas with a target price of ₹1,680, pointing to its attractive valuation and strong long-term prospects.
Highlights from Jefferies’ Report:
Favorable Outlook on Voltas:
Voltas is seen as a strong player in the AC segment, thanks to its leadership position and expansion strategies.
Tough Start to the Year:
Room AC sales were hit in the first quarter due to less-than-ideal weather, leading to a weaker season start.
Growing Market Opportunity:
The Indian AC market is expected to expand rapidly as household penetration rises in the coming years.
Strategic Expansion:
Voltas is working to protect its lead in ACs while also exploring new product categories such as air coolers. It is also aiming to maintain sustainable margins in its project business.
Voltas-Beko’s Progress:
Voltas-Beko is growing steadily, with increased presence in air coolers, refrigerators, and washing machines.
Long-Term Prospects:
The Indian AC market is poised for robust expansion by 2050, supported by rising incomes and evolving consumer needs.
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