Tata Group stocks have exhibited exceptional performance this year, building on the momentum from last year’s strong rally. Many of the group’s stocks have reached new record highs, crossed key milestones, and delivered some of their best annual returns in recent history.
One standout stock within the Tata Group that has delivered substantial returns to its shareholders is Voltas. The company shares in the current year so far have climbed from 979 apiece to the current trading value of ₹1929, resulting in a massive gain of 97 per cent. This was the stock’s best yearly performance in last six years.
In today’s trade, the stock hit an all-time high of ₹1944.90, edging closer to the ₹2000 mark. At current levels, the market capitalisation of the Voltas stood at ₹64,000 crore. Impressively, the stock ended 7 out of the last 9 months in positive territory, with April being the highest monthly gain of 34 per cent, followed by August with a gain of 13.40 per cent.
Factors supporting the rally
After consecutive summers disrupted by the pandemic and unseasonal rains, the cooling products segment finally rebounded in the recent quarters, gaining further strength in the first quarter of the current fiscal year. Voltas capitalized on this resurgence, bolstered by its resilient supply chains.
In a record-breaking achievement, Voltas sold over 2 million air conditioning (AC) units in 2023-24, the highest ever by any brand in a single year in India. This milestone was driven by the company’s expanded product range, featuring enhanced attributes, and stronger engagement with key regional retailers and modern trade partners.
Voltas’ strong brand positioning, extensive distribution network, and efficient supply chain management helped the company maintain its market leadership throughout the year. The company led the market in both split and window air conditioners, achieving a year-to-date exit market share of 21.2 per cent as of June 2024 (primary market share), securing its position as the top player.
Notably, Voltas held an 800-basis point lead over the second-ranked competitor. In Q1, it increased its market share by 50 basis points to 19.5 per cent, maintaining a 450-basis point lead over its nearest competitor. The company remains focused on retaining its leadership position in the highly competitive RAC (room air conditioner) market.
In April, global brokerage firm UBS projected that Voltas’ market share in the room air conditioner (RAC) segment will rise to 23 per cent by FY26. UBS highlighted that the company has restructured its supply chain to lower costs in this segment, positioning it for continued growth.
Voltas is committed to retaining its No. 1 market position through strategic investments in capacity expansion, product innovation, and operational efficiency. The company has allocated ₹8-10 billion for this purpose, with ₹5 billion already invested in the newly commissioned Chennai plant in August 2024, and ₹3 billion earmarked for expanding the Waghodia plant.
While the domestic market remains Voltas’ primary focus, the company is cautiously exploring export opportunities, though it does not view them as a major strategic priority at this time.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
