Voltas, Blue Star investors chill even as Midcaps, Smallcaps feel the heat

Investors who have shares of consumer durable companies, Voltas Ltd., Blue Star Ltd. have been chilling, at least for the last five days, as these stocks have remained insulated from what has otherwise been a meltdown in the broader markets.

Shares of Voltas are the top gainers on the Nifty Midcap index over the last five trading sessions with gains of 10%.During the same time frame, the Midcap index is down 3.6%.

At the same time, shares of Blue Star are the second best performers on the Nifty Smallcap index, after Narayana Healthcare, with gains of over 15% during the last five trading sessions. The Smallcap index, during the same timeframe, has corrected over 4%.

Shares of these companies have outperformed the broader markets in the recent past in anticipation of surging demand, as India is entering the summer season unusually early, even before the month of March has fully set in.
The Indian Meteorological Department has warned of above normal maximum temperatures over most parts of India between March and May of 2025.

Above normal monthly minimum temperatures likely over most parts of India in March 2025, except Northwest India and South Peninsula, the IMD warned last Friday.

Voltas was recently added in the list of top stock picks of brokerage firm Jefferies, as it met the criteria highlighted by the brokerage to screen stocks, which included trading below its long-term average, a 14% Earnings Per Share (EPS) growth visibility and minimal downgrades in the last two quarters.

Jefferies has a “buy” rating on Voltas with a price target of ₹1,990.

Despite this recent surge, shares of Voltas are down 28% from their recent peak of ₹1,944, while those of Blue Star are down 11% from their recent highs.

Shares of Blue Star are currently trading 6% higher at ₹2,151, while those of Voltas are trading 2.6% higher at ₹1,401.