Voltas At 52-Week High: Shares of Voltas hit their upper circuit of 10 per cent and posted a fresh 52-week high in early trade on April 8, after the AC maker announced that it sold 2 million units in FY24.
Voltas on Sunday, April 7, announced that it has achieved the highest-ever sales of air conditioners (ACs) in the fiscal year 2023-24. With over 2 million AC units sold during this period, Voltas’ sales numbers are also industry-first. The Tata Group company said in an exchange filing, “The company achieved over 2 million AC units during this fiscal 2023-24, the highest ever sale of ACs by any brand in a financial year in India, with a volume growth of 35 per cent.”
According to Voltas, the performance was aided by consistent demand for cooling products during the year, a strong offline and online distribution network, strong brand equity, and innovative new launches.
Commenting on the landmark achievement, Pradeep Bakshi, Managing Director & CEO of Voltas Limited, said, “Our extensive presence, focus on emerging retail channels, excellent distribution network, strong brand equity, and attractive consumer offers have propelled us to this significant achievement. We extend our gratitude to all our business partners and customers for their unwavering support, making us the undisputed leader.”
Voltas has maintained its position as the market leader in the air conditioner category for over a decade. The brand is now poised to further expand its retail and distribution network to accommodate its expanding product portfolio.
More Upside Ahead For Investors?
Brokerage HSBC is bullish on Voltas. It has maintained a ‘buy’ rating on the stock expecting that the company’s unitary cooling products (UCP) division will witness a significant increase in profitability.
Further, on April 2, stock prices of consumer durables companies such as Voltas and Havells India surged after the Met Office issued warnings of a heatwave as a result of extreme weather conditions.
However, in a report, ICICI Securities debunked the claim that the heatwave will have any impact on the revenue growth of summer products.
“While the narrative of ‘heatwaves result in higher growth of summer products (fans, air coolers, air conditioners and refrigerators)’ is popular, we believe historical data does not support this,” the broking firm said in a report.
Over the past six months, Voltas shares have surged almost 60 per cent in trade. In comparison, the domestic benchmark, Nifty 50 has risen around 15 per cent during the same time period.
Comments
0 comment