Does this AC maker deserve a spot in your portfolio?

With the rising mercury, customers are crowding retail outlets for cooling products and investors are looking for stock ideas tailored to the season. One such name is Voltas , the market leader in the Indian air conditioner market. With over 25,000 customer touchpoints, the Tata Group company was in news recently for being the first to sell over 20 lakh air conditioners in a single financial year (FY24). This was a 35 per cent jump over FY23. The feat was achieved thanks to Voltas' strong online and offline presence, new additions in stock-keeping units (SKUs) and its strong brand name. So far, it sounds like a solid summer play, right? But a deep dive reveals a different picture: Running ahead of fundamentals Despite being the industry leader with significant volume growth over the years, Voltas has struggled to maintain consistency in its profitability. Voltas' financials at a glance Inconsistent operating profit and shrinking margins FY19 FY20 FY21 FY22 FY23 TTM Revenue (Rs cr) 7,124 7,658 7,556 7,934 9,499 11,235 Operating profits (Rs cr) 577 654 607 644 533 456 Operating profit margins (%) 8.1 8