Voltas Ltd.
Consumer Goods · NSE
52-week range
₹1,183 – ₹1,583
From 52w high
-16.3%
RSI (14)
39.6
vs SMA 50 / 200
↓ 50 · ↓ 200
Voltas (₹1,315.6) is an NSE-listed consumer durables company in the Consumer Goods sector, best known for its air-conditioning and engineering products. Over the past 5 years, revenue has contracted 1.1% in aggregate and earnings have declined 35.6%, while the stock trades at a trailing PE of 87.1x — one of the higher multiples in its peer group despite ranking last on quality score among the 6 peers tracked. The stock is currently below both its 50-DMA and 200-DMA, with a 16.87% drawdown from its 52-week high.
- ✓Heatwave-driven AC demand has been a recurring near-term catalyst, with news coverage in April–May 2026 citing Voltas alongside power stocks during the summer demand surge.
- ✓Forward PE of 46.6x represents a meaningful compression from the trailing PE of 87.1x, suggesting analyst consensus embeds a significant earnings recovery over the next 12 months.
- ✓Mean analyst rating of 2.57 across 35 analysts (1–5 scale, lower = more constructive) indicates a broadly constructive view across a large coverage base.
- ✓Dividend yield of 0.53% and a debt-to-equity of 27.4 (which is relatively low in absolute terms for a company of this size) provide some baseline financial continuity.
- ✗Quality score of 12 ranks 6th (last) among 6 Consumer Goods peers tracked, with ROE never exceeding 15% in any available year and FCF positive in only 2 of those years.
- ✗Earnings have declined 35.6% over 5 years alongside a 1.1% revenue contraction, meaning margin compression has been the primary driver of profit erosion.
- ✗At ₹1,315.6, the stock sits below both its 50-DMA (₹1,400.5) and 200-DMA (₹1,390.1), with a 7.79% decline over the past 3 months and an RSI of 38.7, near the lower end of the neutral range.
- ✗Profit margin of 3.55% is thin for a premium-PE consumer durables company, leaving limited buffer against input cost increases or demand softness.
- ·A board meeting is scheduled for May 14, 2026 to approve Q4FY26 audited financial results — the upcoming numbers will be the first data point to test whether the analyst-implied earnings recovery is materialising.
- ·India heatwave conditions in April–May 2026 boosted AC and power stocks in the near term, with Voltas cited among the beneficiaries of seasonal demand — though the 3-month price return remains negative at -7.79%.
- ·News flow over the past month is sparse (8 articles), with no negative headlines; the absence of adverse news has not translated into price recovery against the broader technical trend.
- ?Does the forward PE of 46.6x (vs. trailing 87.1x) reflect a structural earnings recovery in the air-conditioning segment, or is it driven by one-time base effects from a low-earnings year?
- ?Given that quality score ranks last among peers and ROE has not exceeded 15% in any tracked year, what would need to change in the business model to narrow the gap with higher-quality Consumer Goods peers like TRENT or TITAN?
- ?The heatwave tailwind is seasonal — to what extent does Voltas's earnings profile depend on summer AC demand, and how does this cyclicality interact with the 5-year earnings decline trend?
- ?With the stock below both moving averages and approaching identified support at ₹1,274, what operational or macroeconomic developments would be most relevant to watch for in the Q4FY26 results on May 14?
PE
87.1
Forward PE
46.6
ROE
—
Profit margin
+3.5%
D/E
27.45
Dividend yield
+0.5%
Quality score
12/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.