Winter is gone and it’s time to invite our warm friend to summer. But with summer, heat rises and so does our wish to find stocks that will be as hot as the sun. We have made a list of a few trading stocks which are expected to rise with the temperatures, so you can make profits out of these great ideas.
As the summer hits in the month of March there will be a surge in demand for products related to the summer like ACs, fans, coolers, refrigerators as well as beverages, sunscreens, lotions & other wellness products. But because of this surging demand there will be an increase in sales of these products, which will lead to increase in business of respective companies engaged in manufacturing, sales as well as in services. So, we have picked some of the best stock market classes in Pune that can gain in summers this time and are also seen favourable on technical charts. Hand in hand there are some other sectors which are also in focus like tourism, construction, hotel, textile, jewellery & lifestyle.
Consumer Durables/Goods Sectors
As the heat wave intensifies in summer, there will be a demand for products that normalise the room temperature as well as the products that frosty liquid beverages and other food products like ice-creams, lassi, etc.
Also, there will be demand for some products that protect from the surging heat wave.
These are our favourites.
Voltas LTD
Voltas is engaged in the business of manufacturing and sales of air conditioning, refrigerators as well as engineering solutions to different industries in businesses dealing in Heating, Air Conditioning and Ventilation. They also deal in electrification, textile machinery, mining and construction equipment.
On Dec 23, Voltas sold 2626 Cr. In Dec worth of equipment. We expect the sales in the March quarter to rise by 48 % due to summer related demand.
Expected sales March 2024: 3800-3890 Cr.
| PRICE TO EARNING(PE) | 122 |
| ROCE | 9.67 % |
| ROE | 4.42 % |
| EPS (TTM) | 8.45 |
Zydus Wellness LTD
Zydus Wellness is engaged in the business of manufacturing and sales of health and wellness products. Company has a wide range of products which includes popular brands with functional benefits like electrolyte restoring Glucon D, children Complan, Sugar Free, Nycil, Everyuth, Nutrilite and Sugarlite.
As the heat wave rises, there will be a surge in demand of the products in which company deals such as the products like Glucon D which are very helpful to restore electrolytes and prevents the body from dehydration, also skin care products like EverYuth’s Golden glow peel off, EverYuth’s scrub, etc.
In Dec 2023 Zydus Wellness Ltd had sales of about 403.20 Cr. We are expecting Sales may grow by at least 60-64% Quarter over Quarter by looking at previous sales growth reports in Q4 i.e.at the beginning of summer as well as during the summer.
Expected sales March 2024: 650-665 Cr.
| PRICE TO EARNING(PE) | 36.8 |
| ROCE | 5.93% |
| ROE | 6.40% |
| EPS (TTM) | 41.2 |
Ambuja Cements LTD
Ambuja Cements principal activity is to manufacture and market cement and cement related products. Ambuja cement was acquired by Adani Group. It is in the business of manufacturing and marketing cement, both in domestic and international markets. During summer rural, urban as well as international demand surges due to large no. of infrastructure development.
In Dec 2023 Ambuja Cement had sales of about 8129 Cr. On an average sale grows by 2.65% in every Q4 than Q3 by looking at previous sales growth reports in Q4.
Expecting Sales Might be of 8342 Cr.
| PRICE TO EARNING(PE) | 34.6 |
| ROCE | 12.6 % |
| ROE | 10.8 %td> |
| EPS (TTM) | 15.95 |
Disclaimer:
This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
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