Stocks to Watch: Symphony, Blue Star, Amber Enterprises shares to gain as IMD forecasts sizzling hot summer
Many companies have increased the prices of these products by 5-6 per cent already. The demand for ACs went up phenomenally because of work from home (WFH) norm forced by the corona pandemic. A report by Jefferies now indicates that sales of these companies will increase in the days ahead and that means the Q4 earning results are likely to be much stronger
The stocks of companies who manufacture cooling products are now soaring. What is the reason? How is the Indian Meteorological Department (IMD) report helping companies like Symphony, Blue Star and Bajaj Electricals share price gain? Zee Business’ Varun Dubey has this interesting report.
Temperatures have been rising over the past few days and over the next few weeks it is bound to get hotter and hotter. According to forecasts given by IMD, the months between March and May are likely to be hotter than usual. And this may positively impact the sales of companies like Symphony, Blue Star and Bajaj Electricals as people may rush to buy products that could bring relief in the sizzling summer months. These products can be air conditioners, water coolers or even refrigerators and fans.
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Many companies have increased the prices of these products by 5-6 per cent already. The demand for ACs went up phenomenally because of work from home (WFH) norm forced by the corona pandemic. A report by Jefferies now indicates that sales of these companies will increase in the days ahead and that means the Q4 earning results are likely to be much stronger.
Last year was a difficult period for most of us and people were at forced to stay inside homes. They could not buy these domestic use items because of variety of reasons. This will cause a pent demand situation to well up too.
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In the room AC segment, Voltas is the market leader with 21 per cent market share. Voltas has benefitted from price increase it imposed. Many dealers have already indicated that they booked more orders and they have been building up inventories.
LG and Samsung have the biggest marketshare in the refrigerator segment at 31 and 29 per cent. Whirlpool is at third number followed by Godrej with 14 per cent market share.
As for air coolers, Symphony is the market leader followed by Voltas.
Dubey also said that investors should also keep an eye on contract manufacturers like Amber Enterprises and PG Electroplast going forward.
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