Voltas Share Price Target: AC rate hikes coming? Know the risks and what will drive company
The AC business has witnessed good growth momentum since Q2 FY21 and with expectation of a harsher summer; the industry and Voltas are looking to recoup some of its lost sales by FY21 end. The inventory level remains high, however with expectations of supply disruptions and price increases, channel partners are stocking up. Voltas expects inventory levels to normalise by Q4 FY21. Given the logistical issues to import key components and the inherent higher inflation rates, the company is likely to look at price hikes by Q4 FY21. The company continues to maintain its margin guidance of 11% to 12%.
Q2 FY21 was better than Q1 FY21, as accessibility to site and labour availability had improved resulting in better execution, although liquidity stress continued: Picture taken from Youtube.com