Morgan Stanley upgrades India's Voltas on likely hotter summer

Blue Star

11/03/2024 09:27

** Morgan Stanley upgrades India's Voltas  VOLT.NS  on bets
of stronger air conditioner (AC) demand, driven by above-normal
maximum temperatures this summer
    ** Brokerage recommends "equal-weight" from "underweight"
earlier, hikes PT to 1,160 rupees from 737 rupees 
    ** Says harsh summers likely after India Meterological
Department forecasts above-average temperatures for March
    ** Voltas bullish AC penetration increasing, but margins may
not improve due to competition - note 
    ** Meanwhile, rival Blue Star  BLUS.NS  expects 25% jump in
AC revenue from summer demand boost
    ** Avg analyst rating on VOLT "hold" vs "buy" for BLUS -
LSEG 
    ** VOLT, which is down 0.3%, has gained 10% so far this year
vs BLUS's 41% jump 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))