The shares of home appliances company Voltas hit an all-time high of Rs 1,356.9 apiece on NSE on October 19, 2021. However, the stock has since been on a downward trajectory. The stock last hit a 52-week high of Rs 991.5 per share on September 8, 2022.
Voltas has been an industry leader for a long time. However, over the past few quarters, it has reported a decline in market share, as other peers (BlueStar, Lloyd and more) catch up. For the September quarter of the last financial year, the company's overall market share stood at 22.8 percent, down from 26.8 percent in the year-ago period.
With the performance taking a hit, it is no surprise that the stock is under pressure, and has been trading off highs for some time now. It remains to be seen if the stock will bounce back to four digits.
Brokerage Motilal Oswal Financial Services expects the home appliances company to have a market share of 21-22 percent in the room air conditioners segment in the financial year 2024-25.
The Tata Group-owned home appliances company claimed a market share of 21.6 percent in the financial year 2022-23. The company expects the Indian room air conditioner market to touch $5 billion by 2027-28, with a compound annual growth rate of nearly 10 percent. "Voltas, being the industry leader with a market share of 21.6 percent, is expected to be at the forefront of this growth," the company said.
Voltas expects rural demand to pick up in the near future as the overall macroeconomic environment remains stable amid tapering inflation and higher consumer confidence.
