Voltas impresses street, scores over peers with strong show in Sep quarter

Better than expected performance, market share gains in room ACs improve earnings outlook

A strong September quarter (Q2) performance by Voltas impressed the Street, with the stock touching a 52-week high and closing up 5.06 per cent on Monday. 

While it gave up part of these gains on Tuesday (down 3.4 per cent), the same could be attributed to profit-booking after a near-35 per cent rise over the past three months, which has made valuations rich. With the outlook for Voltas remaining good, analysts believe a correction would be a better entry point.

The firm’s 14 per cent volume growth in Q2 was led by an increase of 11 per cent in room air conditioners