Shares of Voltas Ltd rose as much as two percent on Tuesday after Citi said that the company’s strong volume performance in the first quarter hinted at a market share gain.

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The brokerage firm continues to remain constructive on the stock and said it is one of the best structural growth opportunity offered by Indian room air conditioner industry.

Citi has a ‘buy’ call on Voltas shares with a target price of Rs 1,225 — an upside of around 17 percent from the current market price.

At 13:25 IST, the scrip was trading 1.4 percent higher at Rs 1,050 on the BSE. The stock has been gaining for the last 2 days and has risen nearly 7 percent during the period.

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Citi’s bullish call comes after the Tata group company Voltas said last week that it sold close to 1.2 million units of residential air conditioners in the first half of 2022, registering a 60 percent growth helped by an intense summer and expansion of sales network.

"The performance was attributed to an increase in demand for cooling products given the intense summer experienced across the country coupled with the company’s strong online and offline distribution network, strongest brand equity, and innovative range of products,” it said.

This is the seventh year in a row that Voltas is witnessing over one million AC sales milestone, the statement said.

Managing Director & Chief Executive Officer of Voltas, Pradeep Bakshi, said the summer of 2022 has helped to gain extra momentum in the market, as well as in market share.

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