AC manufacturer Voltas stock hots up on hopes of a cooler outlook

Manufacturers have also started to stock channels in anticipation of summer demand which may kick in from Q4FY24

Due to unseasonal rains, the second quarter of financial year 2023-24 (Q2FY24) was disappointing for the room-air conditioner (RAC) segment and Q3FY23 was also slow. While general consumption demand was low in Q3FY24, the low base and the pent-up demand from the first half of financial year 2023-24 (H1FY24) seem to have driven an off-season demand for RACs. Among the majors, Voltas could see a turnaround in sentiment along with profit growth and margin expansion. As a result, several analysts have switched their recommendations to “buy/add” from the earlier “reduce/sell”.  

Manufacturers have also started to stock channels in anticipation of