By Aditya Raghunath
Investing.com -- The last three trading sessions have seen share prices of air conditioner stocks rise between 4%-10%. Delhi recently recorded the hottest day in March for 76 years, and from the looks of it, temperatures are only going to go up. Here are how the stocks have moved up:
- Voltas Ltd. (NS:VOLT)
Closing price on March 25: Rs 958.6
Price on March 31 (as of this report): Rs 1,000.6
Percentage Gain: 4.38%
- Blue Star Ltd (NS:BLUS)
Closing price on March 25: Rs 864.25
Price on March 31 (as of this report): Rs 906.6
Percentage Gain: 4.9%
- Whirlpool of India Ltd (NS:WHIR)
Closing price on March 25: Rs 2,156.25
Price on March 31 (as of this report): Rs 2,269.4
Percentage Gain: 5.24%
4. Amber Enterprises India Ltd (NS:AMBE)
Closing price on March 25: Rs 3,002.8
Price on March 31 (as of this report): Rs 3,305.05
Percentage Gain: 10%
- Johnson Controls-Hitachi Air Conditioning India Ltd (NS:JCHA)
Closing price on March 25: Rs 2,517.65
Price on March 31 (as of this report): Rs 2,629
Percentage Gain: 4.42%
While demand remains robust, one factor that could affect profitability in this sector is rising commodity prices. Companies will either have to pass on the hike to the consumer which could result in lower demand or will have to absorb the additional cost themselves which will affect profitability.