BofA Downgrades Voltas Due to High Valuations, Favors LG Electronics
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Voltas Shares Drop 4% After BofA Downgrade on Rich Valuations, Prefers LG Electronics
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CNBC TV18•02-03-2026, 19:05
Voltas Shares Drop 4% After BofA Downgrade on Rich Valuations, Prefers LG Electronics
•Voltas shares fell 4% after BofA Securities downgraded the stock to 'Underperform' from 'Buy'.
•BofA reduced Voltas' price target by 7% to ₹1,500, citing its 42x FY28E P/E valuation and 13% year-to-date rally.
•The brokerage prefers LG Electronics India due to its superior franchise, higher return on equity, and stronger export exposure.
•BofA cut Voltas' earnings estimates for FY26-FY28 by 4-7% due to anticipated cost pressures from commodity inflation and potential price hikes.
•Key risks include continued losses from Voltas Beko and potential margin impact from a 2.5% import duty hike; data center opportunity remains a long-term positive.
