IEA lifts annual crude output forecast amid OPEC+ production hike
Investing.com - UBS raised its price target on Voltas Ltd. (VOLT:IN) to INR1,770.00 from INR1,660.00 while maintaining a Buy rating, citing benefits from the recent GST reduction on room air conditioners.
The GST rate on room air conditioners (RACs) has been cut from 28% to 18%, aligning them with other white goods and indicating policymakers no longer view them as luxury items, according to UBS.
The firm expects manufacturers to pass the tax benefit to consumers amid stiff competition, improving affordability and driving penetration and volume growth after a weak summer season that was impacted by unseasonal rains.
India currently has the lowest RAC affordability and penetration among emerging markets, and the improved affordability from the tax cut should boost market penetration, UBS noted in its analysis.
The firm also anticipates potential premiumization in the market, as 70% of current demand is for 1.5-ton 3-star RACs, which could shift demand up the value curve to higher-end models.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.