Voltas share price geared for cooler times

Strong AC segment prospects, rising margins in projects business to aid earnings

The share price of Voltas has almost doubled in the past year due to strong performance of its air-conditioner (AC) business, where it is industry leader. While the trend in the AC business is seen as continuing, improvement in profitability of its projects business should translate to faster growth in earnings.

The AC segment has been a key growth engine for Voltas in the past few years. Consequently, the unitary cooling products (UCP, includes ACs) segment has done well, clocking 21 per cent revenue growth in FY17. Voltas' strong foothold in tier-II, III and IV cities (besides urban India), analysts say,