Rising demand for room air-conditioners pushes up Voltas's stock

Distribution expansion, launches may perk up firm's showing

The stock of Voltas, the country’s largest room air- conditioner (RAC) maker, is up 22 per cent in the past three months. Robust demand on the back of a sweltering summer, distribution expansion, slew of launches and backward integration are expected to forge a good operating performance for the company.

In the core RAC segment, there are multiple triggers for the company. Lower inventories (due to severe summer season) and strong demand (50 per cent higher than off season) have helped AC majors to raise the prices of their products. Voltas, according to Prabhudas Lilladher Research, has hiked