With scorching summers ahead of us, air conditioners manufacturers are expected to see an uptick in demand. Stocks of Voltas, Havells and Blue Star are already surging in anticipation of a strong order pipeline. On Wednesday, shares of these companies were trading up on the BSE.

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Voltas shares gained over 6 per cent to Rs 1285.55 per share on the intraday basis while Havells India shares jumped almost 4.5 per cent to Rs 1130 per share. Meanwhile, Blue Star was up over 1.5 per cent to Rs 998 per share. The stocks were outperforming the S&P BSE Sensex which was higher by 1.4 per cent from the Tuesday closing. 

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Budgetary boost given to the infra sector by the government may aid order growth of Voltas, Geojit Financial said in its report. The brokerage sees growth potential for the business in the coming months with Q4 being the beginning of summer season sales for all the cooling products. 

Inflationary pressure on input costs may keep margins stressed in the near-term, the brokerage said. It maintains a 'Hold' on the stock. Voltas plans a price hike across all product categories to support the margins to neutralise the impact of commodity price increases and higher supply chain costs, it added. 

ICICI Securities remain structurally positive on the white goods and durables sector considering the strong return ratios, healthy growth potential and low penetration levels. The brokerage also expect migration from unorganised to organised sector to steadily generate value.  

Havells has established a strong product portfolio across sub-segments, the brokerage said. It added, “We model personal care products to be a major growth driver for the company in FY22-24.” 

In the last one year, Voltas shares have jumped around 25 per cent while Havells has gained marginally with 3 per cent upside.

Blue Star is up over 9 per cent as compared to around 12.5 per cent gain in the S&P BSE Sensex.