Street happy with Voltas' move into white goods

If executed well, expansion could lead to re-rating of the stock

Voltas gave investors more than a reason to cheer. On Tuesday, not only did it post stellar results for the March quarter (Q4) but also announced the formation of a joint venture (JV) with Turkey-based Ardutch to launch a host of consumer durables products. While Voltas has maintained a lead in the domestic air-conditioners (AC) market despite stiff competition, investors have always felt it needed to diversify into other products. The JV, analysts believe, is a step in that direction and channels the company's cash kitty in productive avenues. They say the expansion opens up new growth opportunities. Credit Suisse