Top 10 Stocks to Bet on for Cool Returns this Summer
As the temperature begins to rise, brokers and advisors are recommending that investors should buy stocks of companies associated with air conditioners, cooling systems, consumer durables and tours & travel that normally see an uptrend between March and J
The summer season has begun well for the AC industry with an expected growth of 15% YoY in value terms. Blue Star, according to analysts, aims to again outperform the industry with a 25% YoY growth, leading to its market share further rising to 11.5-12%. “We value the company at 21x FY18 estimated earnings at
433 for standalone business and 10x FY18E earnings at 32 for Blue Star,” said Renjith Sivaram, analyst, Antique Stock Broking.
Pidilite has a product which needs to be applied to roof and walls so that the walls absorb heat. Price to book value of the stock is expected to be 10.9 and 9.5 times for FY16 and FY17 estimated book. “We have been buyers of this now because we have been expecting a hot summer and the risk reward is evenly balanced from a short-term basis,” said Ravi Shenoy, VP-research at Motilal Oswal. “If one is looking at near-term positive returns, one could look at this stock for 5-10% upside”.