Rich valuations may weigh on Voltas' cool outlook despite stellar Q3 show

Analysts turn cautious following a near 40 per cent gain in last three months

Shares of India’s largest air conditioning company, Voltas, corrected more than 4 per cent from its intraday high on Tuesday. They closed 2.1 per cent lower as investors booked profits, even as the company reported better-than-expected results for the October-December (third quarter, or Q3) quarter.

Voltas’ earnings in the seasonally lean Q3 beat analyst expectations by a huge margin, thanks to all-round growth across business segments. Revenue from the unitary cooling products (UCP) business rose 40 per cent over the corresponding quarter, aided by pent-up demand and increased stocking by dealers, ahead of price increases initiated in January.

The company