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News for India > Business > Voltas share price jumps after announcement of LIC raising stake in consumer durable stock to over 5% | Stock Market News
Business

Voltas share price jumps after announcement of LIC raising stake in consumer durable stock to over 5% | Stock Market News

Last updated: September 29, 2025 2:41 pm
3 months ago
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Share Price TrendAnalysts remain cautious

Tata Group company Voltas share price jumped 3 percent to ₹1379.30 on Monday, September 29 after Life Insurance Corporation of India (LIC) has increased its shareholding in the firm taking its stake above 5 percent.

According to a regulatory filing under SEBI’s Substantial Acquisition of Shares and Takeovers (SAST) Regulations, LIC purchased 2.01 lakh shares of Voltas through open market transactions on September 25, 2025.

Before the transaction, LIC held 1.65 crore shares, representing 4.99 percent of Voltas’ paid-up equity share capital. Following the purchase, its holding has risen to 1.67 crore shares or 5.05 percent of the company’s equity.

Share Price Trend

The stock has lost over 28 percent in the last 1 year. Meanwhile, it has shed 6 percent in last 6 months but added 5 percent in past 3 months.

In the long term, 5 years, the scrip has given multibagger returns, rising 100 percent.

Currently the stock is over 27 percent away from its 52-week high of ₹1,901.00, hit in October 2024. Meanwhile, it touched its 52-week low of ₹1,135.55 in February 2025.

Analysts remain cautious

Voltas Ltd faced a tough outlook for the second quarter, with Nuvama Institutional Equities highlighting elevated channel inventory levels of two to three months and demand pressures from expectations of a GST cut that have slowed sales momentum over the past five weeks.

Despite these near-term challenges, the company remained hopeful of a recovery in the third quarter, banking on festive season demand and the anticipated GST rate reduction. Voltas also planned to extend channel support and incentives through Q2 and potentially into Q3 to stabilize sales.

Nuvama said its projections remained broadly intact, with revenue, EBITDA, and PAT expected to clock a CAGR of 8 percent, 6 percent, and 10 percent respectively over FY25-28. The brokerage retained its ‘Reduce’ rating on the stock with a target price of ₹1,070, implying an over 22 percent downside from the current market price of ₹1,419.40.

The brokerage pointed out that Voltas and the broader cooling products industry posted a decline in Q1 FY26, and the trend is likely to extend into Q2, owing to a high base effect. It added that a weak season and the upcoming BEE efficiency change effective January 1, 2026, could intensify near-term challenges, forcing liquidation of elevated channel and brand inventories.

Voltas, however, is sharpening focus on regaining market share in its core cooling segment, aided by the expected GST cut from 28 percent to 18 percent. The company is simultaneously broadening its appliances portfolio across RAC, dishwashers, refrigerators, washing machines, air coolers, and fans. Commissioning of its Chennai facility is also expected to strengthen medium-term growth prospects.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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