Summer is here! Let’s think about how to make this summer super cool. We try to relax on vacation with our family. We especially choose hilly places. Amusement parks will be overcrowded because they are one of the best places to be with our family. To stay hydrated this summer, we aim to consume more and more water, soft drinks, fresh juices, etc. In a densely populated country like India, when summer approaches, people are more inclined towards products that depend on it. As the demand for summer-based products and industries increases, businesses benefit greatly from consumer demand.
The three main sectors that will bring big profits this Summer are
- Consumer Durable
- FMCG(Fast Moving Consumer Goods)
- Tourism
Consumer Durables:
One of the most consumer-driven products in the summer is the home appliances that will keep us cool this summer. Such products include air conditioners, air coolers, fans, refrigerators, etc. There are many listed companies on the stock market that manufacture these great home appliances. As the summer heat rises, there will be more demand for these products. As such, production increases, and the company’s stock subsequently rises. Let’s find out the best Consumer Durables products that will help us to make our investments double.
1. Voltas :
Voltas Limited is an Indian multinational home appliances company headquartered in Mumbai. It designs, develops, manufactures, and sells products including air conditioners, air coolers, refrigerators, washing machines, dishwashers, microwaves, air purifiers, and water dispensers. Voltas is India’s largest air conditioning company by market share. The company was incorporated on September 6, 1954, in Mumbai, as a collaboration between Tata Sons and Volkart Brothers. Observe the chart of Voltas. In the middle of March month the price was around 1040. It rallied all the way up to 1400. Around 360 points up in 45 days. More than 25% gain.
2. Blue Star :
Blue Star was founded in 1943 by Mohan T. Advani as a reconditioning company. Soon after inception, Blue Star ventured into the manufacturing of ice candy machines and bottle coolers and began the design and execution of central air conditioning projects, followed by the manufacturing of water coolers. The company later expanded into new product lines and began exporting to Dubai. It went public in 1969 with an initial public offering, listing on the Bombay Stock Exchange. Observe the chart of Blue Star. In the middle of March month the price was around 1230. It rallied all the way up to 1400. Around 230 points up in 45 days. More than 16% gain.
3. Amber:
Amber Enterprises is an original equipment manufacturer that offers products including air conditioners, microwave ovens, refrigerators, washing machines, heat exchangers, multi-flow condensers, luminaries, and vacuum-forming components. Established in 1990, Amber Enterprises India Limited is the most backward-integrated market leader in the Indian Room Air Conditioner (RAC) industry. The company has a presence across both the component space and finished goods in the HVAC industry. Observe the chart of Amber. In the middle of March month the price was around 3050. It rallied all the way up to 3790. Around 750 points up in 45 days.
FMCG(Fast Moving Consumer Goods):
FMCG sector stocks involve the shares of companies engaged in the diverse industry of fast-moving consumer goods. The sector includes a wide range of companies, from production to distribution and marketing of day-to-day consumer products that come with a relatively limited shelf life and are frequently purchased. The goods that remain in demand in the summer are beverages. As there will be more demand for beverages, manufacturing will see a rise, and so will the share price.
1. Varun Beverages(VBL):
Varun Beverages Limited (VBL), one of the listed companies in NSE, is one of the top FMCG players in the Indian market. Incorporated in 1995, it has been associated with PepsiCo, is a key player in the beverage industry, and is one of the largest franchisees of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks, and packaged water sold under trademarks owned by PepsiCo. Observe the chart of VBL. The stock has been giving a solid returns for the past few months. It has gave a whooping return of more than 50% in the past 6 months.
2. Vadilal Industries:
Vadilal Industries is an Indian multinational company specializing in ice cream and frozen food products. The company was established in 1907 by Vadilal Gandhi in Ahmedabad. They are engaged in the business of manufacturing ice cream, flavored milk, frozen desserts, processed foods, and other dairy products. Observe the chart of VadilalInd. The stock has been giving a solid returns for the past few months. For the past 6 months the stock gave a huge profit of more than 60%.
3. United Breweries Ltd(UBL):
United Breweries Limited is an India-based beer company. It is engaged in the manufacturing, purchasing, and selling of beer and other beverages. The company markets beer under the Kingfisher brand and owns various other brands of alcoholic beverages. United Breweries is India’s largest producer of beer. Observe the chart of UBL. The stock has been giving a solid returns for the past few months. For the past 6 months the stock gave a good return of around 30%.
Tourism:
Traveling to beautiful destinations keeps the summer heat at bay. There are many travel agencies that offer attractive travel packages and deals. These types of packages will attract customers, which will boost the tourism industry. It also boosts economic growth and job creation for the economic well-being of the country by attracting additional income, creating many employment opportunities, and fostering infrastructural development. So, tourism-related stocks play an important role in the Indian stock market.
1. IRCTC:
Indian Railway Catering and Tourism Corporation is an Indian public-sector undertaking that provides ticketing, catering, and tourism services for the state-owned Indian Railways. It was established in 1999 by the Government of India and operated under the administrative control of the Ministry of Railways. Observe the chart of IRCTCL. The stock has been giving a solid returns for the past few months. For the past 6 months the stock gave a good return of around 50%.
2. Thomas Cook(India)Ltd:
Thomas Cook (India) Ltd. is India’s leading travel and travel-related financial services company. They offer various services, including domestic and international holiday packages, hotel bookings, foreign exchange, travel insurance, and visa services. Observe the chart of Thomas Cook. The stock has been giving a solid returns for the past few months. For the past 6 months the stock gave a good return of around 80%.
3. Indian Hotels Company Limited(IHCL):
Affiliated with the Tata Group, IHCL manages a diverse portfolio of properties, including hotels, resorts, and palaces, under its prestigious brands. The company’s focus on high-quality service and its broad portfolio underline its growth prospects, especially as international travel continues to recover. The stock is traded as INDHOTEL in the NSE. Observe the chart of IHCL. The stock has been giving a solid returns for the past few months. For the past 6 months the stock gave a good return of around 50%.
Conclusion:
This summer, we have many ways to relax. With this, making a good profit naturally gives us a cool breeze. It is always important to analyze the company’s performance, financial growth, management skills, and also the performance of its peers. The most important thing to keep in mind when investing is portfolio diversification. Getting a huge return on one stock and losing all your money on the next trade is much better than making consistent returns with your diversified portfolio.
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
