Tuesday, May 21, 2013

Cool Cool Summer stocks

The Summer heat is here and we are already in mid of intense summer heat. The month of May is the most intense summer and heat waves blows across India. Silk clothes are tucked deep into the wardrobe and the light pastel and white cottons are in. Deep fried foods are out and light meals with salads, ice-cream and soft drinks are in. Sunscreen, Sun glasses and umbrella are most to protect from blistering heat.

Just as we change our general lifestyle, food and clothes to adapt to the changing climate, it is good to have a re-look at our stocks. Like summer clothes there should be stocks to beat the summer heat. Like monsoon is the season to look at agricultural stocks and pesticides and winter is the season to have everything keeping in mind the festive season. There most be something that is summer season specific. Lets now explore this criterion.


This buying is based on logic. Now, just look out and think, what would you reach out to in this summer. those which you buy and consume for summer is definitely the stock for summer.

Naturally, the biggest winner in summer would be home appliance companies - specifically AC, cooler and fans. Companies like Voltas, Bajaj electricals, Videocon, Symphony, Godrej would surge. Though, now the China made cheaper varieties are giving hard competition to these companies.

Now, again the sale of these home appliances depend on the power cut. In general most part of India would have to face regular power cut and without power there is no use of any of these. Hence, alternative power source like gensets and inverters would also see a surge in volume. Companies like Kirloskar power engine, Greeve cottons, Cummins, Mahindra Poweroll and Eicher would rule this place. However, China products also give stiff competition to these. Refrigetors would also have uptake in this summer.

Next lets look at the fast moving consumer goods (FMCG) sector. To beat the heat the consumption of soaps, deodorants, perfume, shampoos, talcum powder and skin care products would increase.Already, FMCG has seen a good growth due to price rise of vegetables and edibles. The rulers like HUL , ITC would see a good uptake in this summer. This is a peak season for ice-cream makers, and Vadilal industries and HUL rule's this place. Non of the aerated drinks companies are listed in stock exchange, so next lets look at the fruit juices. Only Dabur has Real fruit juice and this would also see a good uptake.

To meet the heat, people would like to spend more time in malls and movies. So, this could be good season for Future group, PVR and INOX. People would also like to take up holidays as this is school holiday season. So, the companies like Cox & Kings, Thomas cook would do good business. Travel companies and mid range hotel companies would also do brisk business. 

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...