Voltas, Blue Star, EPACK Durable and other AC stocks soar up to 5%; Here’s why

Shares of air conditioner (AC) manufacturers like Voltas, Blue Star, Havells, Amber Enterprises, Johnson Controls-Hitachi Air Conditioning and EPACK Durable surged up to 5% in trade on Wednesday, March 19, after a report suggested that the government has exempted critical air conditioning and refrigeration components from compulsory Bureau of Indian Standards (BIS) certification to combat the upcoming summer season.

In the intraday deals, shares of Voltas rose as much as 4.22%, Blue Star advanced 3.11%, Havells gained as much as 2.46%, Amber Enterprises surged 2.54%, Johnson Controls-Hitachi Air Conditioning rose 1.81% and EPACK Durable was locked in a 5% upper circuit at ₹360.95, data from the BSE showed.

So far this year, EPACK Durable shares have declined 34%, Voltas shares are down 16.35%, Johnson Controls-Hitachi Air Conditioning is up 3.68%, Blue Star shares have gained 2.70% and Amber Enterprises has dropped 8.30%, according to data from the BSE.

As per IMD, during the upcoming hot weather season (Mar-May), above normal maximum temperatures are likely to be witnessed across most parts of India which is likely to boost demand for air conditioners, analysts said.

According to a study by credit rating agency ICRA, Indian room air-conditioner industry is set for unprecedented growth, with year-on-year sales volumes expected to grow by 20-25 per cent to reach record highs of 12-12.5 million units in the current financial year.

Rising temperatures, increasing demand for multiple AC units, growing urbanisation, higher disposable incomes and favourable consumer financing options are expected to drive growth for the AC industry over next few years, ICRA said in a report.