Listed AC Manufacturing Companies in India
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Listed AC Manufacturing Companies in India

Summers are around the corner, hotter than ever, and nowadays you cannot sit without an air conditioner, but have you ever thought of making profits in this summer season while enjoying your soft drinks? Yes, you can achieve this by investing in a listed AC manufacturing company in India with a strong market presence.

In this blog post, we’ll provide you with all the information you need about India’s top five air conditioner manufacturers.

What are Air Conditioner Stocks?

AC manufacturing firms are those that design, develop, and manufacture commercial air conditioners, room air conditioners, and other cooling equipment. Suppliers of AC unit parts, such as compressors and condensers, are also included in this industry. Additionally, some businesses distribute air conditioners and sell the units to merchants. 

List of Best AC Stocks in India

Explore the top air conditioner stocks in India with this comprehensive list of the best-performing AC companies to invest in for steady growth.

Overview of Best AC Stocks in India

Voltas Limited 

In 1954, the company was established in partnership with Volkart Brothers and became a member of the Tata Group. The company’s name comes from the union of its two original names, Volkart’s “Vol” and Tata Sons’ “Tas.” The company started off selling air conditioners, but later on, they added air coolers, water dispensers, and commercial refrigeration to their line of products. To manufacture household appliances, the company recently partnered with the Ardutch, which is controlled by the Koc Group which makes the Beko brand of appliances, and started manufacturing appliances under the name of “Voltas Beko”. The Ministry of Finance awarded the company “The Most Energy Efficient Appliance of the Year in Air Conditioners” in 2021. The company’s headquarters are located in Mumbai.

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Blue Star Limited

In 1943, Blue Star Limited was established by Mohan T. Advani. The company’s first concentration is on air conditioner and refrigerator repair and reconditioning. The company worked along with a US-based company to manufacture air conditioners. The company employs 765 service associates and has 5000 stores and has presence in 18 countries. The company owns and operates manufacturing plants in Dadra, Kala Amb,Wada and Ahmedabad. The company’s headquarters are located in Mumbai. 

Amber Enterprises India Ltd. 

The company was founded in 1990, and its main office was located in Gurugram, Haryana. In 2004, they also began producing room air conditioners and sheet metal components. The business was listed on a stock exchange in 2018. They employ more than five thousand people. To support the strategic expansion of their business, they have completed several well-considered acquisitions, including those of PICL India Pvt. Ltd. and IL JIN Electronics India Pvt. Ltd. 

Johnsons Control India

The company is a part of Johnson Controls International PLC. The company offers a range of products, including heating, ventilation, and air conditioning systems. The business set up a shop in India in 1995 and bought HVAC automation equipment for the populace there. In an attempt to broaden its product line in India, the business merged with Tyco International, a firm that offers fire safety and security solutions. 

EPACK Durable Limited

This Indian business produces a broad variety of long-lasting consumer goods. It was established as “EPACK Durable Solutions Private Limited” as a private company. The company started to expand its line of products to include consumer durables like refrigerators, air conditioners, and other household appliances. The business changed its name to “EPACK Durable Limited”, a public limited company in June 2023. The company is acknowledged as India’s second-largest manufacturer of original room air conditioner designs.

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Comparative Study of AC Companies

Market Capitalization

CompanyShare Prices (In INR)Market Capitalization (In crores)
Voltas Ltd.148449133
Blue Star Ltd.1668.432138
Amber Enterprises India Ltd.3510.2511827.34
Johnson Controls1719.054674.25
EPACK Durable Ltd.172.551653.01
(As of 23th June 2024)

52 Week High and Low Prices

Company52 Week High Date52 Week High Price52 Week Low Date52-Week Low Price
Voltas Ltd.19-June-2024156014-July-2023745
Blue Star Ltd.18-June-20241797.9525-Aug-2023701.70
Amber Enterprises India Ltd.31-Jan-20244614.2020-June-20232131
Johnson Controls6-June-2024197808-Aug-2023938
EPACK Durable Ltd.19-June-2024238.628-Mar-2024150.60
(As of 23th June 2024)

Income Statement Comparison (FY 2024)

CompanyTotal SalesTotal ExpensesNet Profit
Voltas Ltd.12,48112,054386
Blue Star Ltd.9,6859,118413
Amber Enterprises India Ltd.6,7296,423141
Johnson Controls1,9182,011-75
EPACK Durable Ltd.1,4191,33836
(The above-mentioned figures are in crores unless stated otherwise)
Income Statement of Top AC Stocks in India

According to the above statistics, Voltas Ltd.. reported the greatest profit of INR 414.31 crores and had the highest sales of INR 12734 crores.

Balance Sheet Comparison (FY 2024)

CompanyTotal AssetInventoryTotal Shareholder FundsCurrent Liabilities
Voltas Ltd.12,0352,1355,8205,756
Blue Star Ltd.6,6181,4072,6093,879
Amber Enterprises India Ltd.6,5938402,0633,285
Johnson Controls1,657656582968
EPACK Durable Ltd.1,767378891752
(The above-mentioned figures are in crores unless stated otherwise)
Financial Statement Analysis of Top AC Stocks in India

According to the above table, EPACK Durable has the least amount of assets, while Voltas has the most. 

Cash Flow Statement Comparison (FY 2024)

MetricVoltas Ltd.Blue Star Ltd.Amber Enterprises India Ltd.Johnson ControlsEPACK Durable Ltd.
Cash Flow from Operating Activities761289964254256
Cash flow from Investing Activities(522)(524)(1034)(32)(376)
Cash flow from Financing Activities(116)364(121)(172)166
(The above-mentioned figures are in crores unless stated otherwise)

Among the above-mentioned companies, all companies have negative cash flows from investing activities, whereas only Blue Star and EPACK durables have positive cash flows from financing activities.

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Key Performance Indicators

ParticularVoltas Ltd.Blue Star Ltd.Amber Enterprises India Ltd.Johnson ControlsEPACK Durable Ltd.
Net Profit Margin (%)  3.09  4.272.10    -3.942.56
ROCE (%)10.8322.4410.90    -8.058.8
Current Ratio (x)  1.341.301.02    1.201.33
P/E (x)194.7677.692.81  -34.3233.78
P/B (x)  8.4410.015.97    4.441.62
(Source – Company Financial Reports)

Of the companies listed above, Blue Star has the highest ROCE while Johnson Controls has a negative ROCE.

Reasons to Invest in Air Conditioning Stocks

  1. Due to hot climatic conditions, the demand for air conditioners will be on the higher side, resulting in higher revenues and profits. AC stocks can be considered as a good investment opportunity.
  2. The introduction of innovative technologies such as inverter ACs or energy-efficient ACs creates an opportunity for companies to introduce new products to the market and increase their revenue.

The Risk Associated with AC Stocks

The risks associated with investing in AC company stocks are as follows- 

  1. Due to intense competition between various players in the industry can lead to price competition and lower profit margins.
  2. If the disposable income of the people decreases due to economic conditions, the demand for such products will be affected negatively.
  3. The sales of AC are seasonal, which will lead to fluctuation in the stock prices, hence not suitable for investors who are looking for long-term gains.

Future of AC Stocks in India

India’s need for air conditioners is predicted to rise as a result of rising disposable income and urbanization. Additionally, as a result of the rising temperatures, more people are eager to get air conditioners, which will boost business revenue. Numerous other variables, including government programs and energy efficiency legislation, also have an impact on this sector’s growth. As a result of the increasing popularity of energy-efficient and creative technologies like inverter air conditioners, companies can increase the manufacturing of these kinds of products. 

Conclusion

In conclusion, urbanization, temperature rise, and rise in disposable income present growth opportunities for investing in AC stocks. However, there are several other elements you should take into account before investing, including the company’s finances, product innovation, general economic conditions, etc., all of which could have an impact on the performance of the firm. Therefore, before making any investing decisions, it is advisable to take all of these issues into account and consult with your financial advisor.

Frequently Asked Questions (FAQs)

  1. Which is the largest AC company in India?

    Based on market capitalization and market share, Voltas is the biggest AC company. Its market capitalization is about 49133 crores, and its market share is approximately 35%.

  2. What are some of the biggest air conditioner stocks in India?

    Some of the leading air conditioner stocks include Voltas Ltd., Blue Star Ltd., Amber Enterprises India Ltd, and Johnson Controls Ltd.

  3. How can I invest in air conditioner stocks?

    You can invest in air conditioner stocks by choosing a brokerage firm and opening a demat account with them.

  4. What factors should I consider before investing in air conditioner stock?

    There are various factors, such as economic conditions, seasonal demand, financials of the company, its market share etc.

  5. Should I invest in air conditioner stocks?

    The growth of air conditioner companies depends on the climatic conditions in a region or country; as in India, the temperature is rising continuously, and along with this, disposable income is also increasing. One can consider investing in these stocks after consulting their investment advisor.

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