No slowdown blues for AC makers as double-digit sales growth continues

After strong sales in summer season, they have continued to clock 15-20% growth in recent months

Shares of air conditioning (AC) equipment makers such as Voltas, Blue Star and Johnson Controls-Hitachi Air Conditioning India, are trading 18-28 per cent higher from their July-August lows, with some even near 52-week highs. While the cut in corporate tax rates are responsible for part of these gain (given the estimated 4-12 per cent rise in earnings), the strong sales momentum, which has helped companies beat slowdown blues, is also keeping the street and analysts bullish on these counters.

Channel checks by analysts continue to suggest that demand for cooling products remains strong. Led by strong a summer season the