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COVID second wave hits AC makers; Motilal Oswal cuts Voltas target price

Updated : May 04, 2021 12:32:22 IST

Motilal Oswal in its brokerage report on consumer durables believes that the current crisis in the peak season will have an impact on the air conditioner (AC) offtake.

According to them, the current situation could lead to a complete washout in the summer season for the AC companies. Rising commodity prices and competition could also pose a risk to the earnings and margins of the companies.

While they are maintaining a sell on Blue Star, they have a neutral rating on Voltas. However, they have cut the target price for Voltas to Rs 1,060 from Rs 1,170.

They have also cut the FY22 and FY23 EPS estimates for Voltas by 8 percent and 3 percent. They have a target price of Rs 740 on Blue Star.

CNBC-TV18’s Nimesh Shah gets more details in the special segment ‘Standout Brokerage Report’.

Watch the video for more.
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