As India braces for hotter summer months, stock market analysts are anticipating a surge in shares of multiple listed companies, particularly those involved in manufacturing air coolers, air conditioners (AC), refrigerators, and other related products.
The recent prediction by the Indian Meteorological Department (IMD) of hotter-than-usual temperatures until June has already sparked a rally in the stocks of several companies on Dalal Street.
Key beneficiaries of this trend include companies like Voltas, Blue Star, Havells India, Johnson Controls-Hitachi Air Conditioning India, Whirlpool, and Crompton Greaves Consumer Electricals Ltd. These companies have witnessed significant gains in their stock prices over the past few trading sessions, with some rising by 5-15%.
According to Gaurang Shah, a strategist at Geojit Financial Services, there is an expectation of increased demand for consumer durables and white goods appliances, which is likely to drive the surge in stock prices for these companies.
Analysts predict that companies manufacturing ACs and air coolers will experience more substantial gains compared to those producing other consumer durables like fans, refrigerators, and power generators.
Major AC manufacturers are anticipating double-digit growth this year, with industry estimates suggesting up to 25% growth, particularly from tier-3 towns and smaller centers.
Furthermore, industry body ICRA forecasts a 15-20% expansion in the AC industry, indicating favorable conditions for AC manufacturing companies during the summer months.
Apart from companies involved in cooling solutions, stocks related to ice cream, soda, dairy products, and energy companies are also expected to be in focus during the summer season. This includes companies like Hindustan Unilever, ITC, Varun Beverages (PepsiCo Inc bottler), Vadilal Industries, Adani Power, and Reliance Power, which operate thermal power plants.
Overall, the anticipation of increased demand due to the hotter summer forecast is likely to drive stock prices for these companies in the coming months.
