Voltas stock's prospects improving slowly, but analysts not yet bullish

While inventory liquidation is positive, higher volumes and price hikes are imperative for rich stock valuation to sustain

Shares of Voltas have rebounded over 20 per cent since February lows on hopes that as the summer season kick started in South India driving demand for cooling products, especially air conditioners (ACs), North India would follow suit soon. The channel checks also indicate that some inventory has been cleared, which is positive. As per analysts at CLSA, the AC inventory has now started coming down and stands at one month for Voltas as against two months as on December’18. The company, along with peers, had not seen a favourable environment in the first nine months of FY19 as seasonal