The unusual warming of surface waters in the eastern equatorial Pacific Ocean is referred to as El Niño, a climatic pattern. El Niño also affects the atmosphere and trade winds.
The India Meteorological Department (IMD) predicts that most of the nation will likely experience hotter-than-usual summer temperatures from March to May. El Nino conditions are expected to last for most of this time, which might lead to an increase in the frequency of hot days.
In order to counteract the impacts of heat waves, consumer durable goods like air conditioners, refrigerators, and other cooling appliances may become more in demand as the temperature rises.
As a result, the leading appliance manufacturers in India expect that sales of refrigerators and air conditioners (ACs) will increase by at least 20% to 35% this summer.
The following contains all the information on the businesses that anticipate a spike in sales of such cooling appliances.
Blue Star Limited
Since this summer will be hotter than usual, the company is targeting to raise sales of air conditioners by 25%. Strong demand for ACs is anticipated over the summer months.
As per a few sources, Blue Star is reportedly doubling its advertising spending to Rs. 40 crore in an attempt to get attention during major events like the Indian Premier League (IPL) and the country’s general elections this year.
Blue Star reported an annual revenue of Rs. 7,977 crore for the previous fiscal year, and it aims to conclude the current fiscal year with revenue of about Rs. 10,000 crore.
With a market capitalisation of Rs. 28,155 crores, the share price of Blue Star moved up by 2.22 percent at Rs. 1,379.35 on BSE in the morning trading session of Thursday, compared to its previous closing price of Rs. 1,349.35.
The company has delivered positive returns of nearly 89.3 percent in the last one year and about 53.7 percent in the last six months. So far in 2024, it has given around 43.1 percent of positive returns.
Blue Star is the leading Heating, Ventilation, Air conditioning and Commercial Refrigeration (HVAC&R) company in India.
The company manufactures air purifiers, air coolers, water purifiers, cold storage and speciality products, and offers turnkey solutions in MEP (Mechanical, Electrical, Plumbing) and fire-fighting services.
Godrej Appliances
Godrej Appliances expects a 20% growth in ACs and refrigerators sales over the upcoming summer season.
According to Financial Express, the executive vice president of the company reportedly said that the AC segment witnessed 100% growth in the previous calendar year and that the company continues to generate the most revenue in that segment.
Additionally, it was also mentioned that Godrej Appliances will not change product pricing until June since rising inflation and the Red Sea Turmoil, which has redirected shipping lanes worldwide, had not yet affected input and supplier costs.
The company opened 3,000 new outlets this year, and for the upcoming fiscal year, it plans to open another 3,000–4,000 new outlets. E-commerce makes up between 8% to 10% of overall revenues.
Currently, the company has an annual capacity of 10 lakh washing machines, 36 lakh refrigerators and 10 lakh ACs.
Godrej Appliances made the first Indian refrigerator in 1958 and is currently engaged in providing a broad range of air conditioners and home appliances.
Amber Enterprises India Limited
In the next two financial years, the company is targeting doubling its revenue from the electronic segment.
In January 2024, Amber Enterprises acquired a 60% stake in Ascent Circuits, which manufactures printed circuit boards (PCB). This acquisition will strengthen Amber’s electronic EMS portfolio for backward integration.
CNBC reports that during the April–December 2023 period, Amber’s electronics division contributed around Rs. 757 crore, or nearly 19%, of the company’s total sales of ₹3,924 crore. In the upcoming two years, it is anticipated that the share will rise to 25–30%.
With a market cap of Rs. 12,717, the share price of the company moved up by nearly 2.03 percent on BSE to Rs. 3,852.4 in the trading session of April 4th, from its previous close of Rs. 3,775.5.
The company has delivered a positive return of around 30.04 percent in the last six months, and nearly 104 percent of multibagger returns in the last one year. So far, it has given around 20.02 percent of positive returns in 2024.
Established in 1990, Amber Enterprises India Limited is the market leader in the Indian Room Air Conditioner (RAC) industry, with a presence across both, the components space and finished goods, in the HVAC industry.
Written by Shivani Singh
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