Indian equity benchmark indices opened on a positive note on Friday, supported by upbeat global cues. Both the Nifty 50 and BSE Sensex traded in the green at the opening bell. The Nifty 50 crossed the 25,900 mark, while the Sensex surged over 350 points. In early trade, the Nifty was hovering around 25,913, up nearly 98 points, while the Sensex was trading at about 84,830, gaining around 349 points.
As per reports by ICICI Securities Voltas H2FY26 likely to form bottom; recovery hinges on pricing, mix improvement and execution. Voltasā trade inventory for RACs is ~45 days. Its inventory days have ebbed materially QoQ, but are higher by 20ā25 days YoY ā this emerged as an essential insight from the management call. Other takeaways: (1) Voltas has gained volume market share in RAC from Q1CY25 to YTD. (2) We believe, change in BEE norms, raw material inflation and INR depreciation may trigger mid-single-digit price hikes. (3) VoltBek is gaining market share in washing machine and refrigerators despite industry slowdown. (4) Domestic projects business is doing well and Voltas would continue to be selective in margin-accretive projects. (5) Commercial refrigeration business may see an impact in H2FY26. However, it is likely to revive in Q1FY27. (6) Data centres and group companiesā infrastructure spends provide growth tailwinds.
Also read: https://marksmendaily.com/business/indian-equities-remain-subdued-as-sectoral-pressure-weighs-investors-turn-cautious/
Outlook: We believe, the GST rate reduction, energy norm transition, pricing action and sustainable project momentum should support a gradual improvement from Q4FY26E. However, near-term margins may remain sensitive to cost pressures. We maintain ADD with a DCF-based revised TP of INR 1,460 (earlier INR 1,430), with an implied target P/E of 40x FY28E EPS.
