What are the Opportunities?
Products such as ice creams, cold drinks and alcoholic beverages to consumer electrical goods such as ACs, refrigerators and coolers are the primary beneficiaries of this climate.
In this sense, even gaming companies can benefit as outdoor activities remain restricted during summers.
Which are the Beneficiary Companies?
Companies that sell these goods make up more than half of their yearly sales in the June quarter itself, and they stand to benefit from these dry days.
And as these opportune times come after two years of summers disrupted by lockdowns, companies are all set to capitalise on this opportunity!
Sales of beer have already surpassed the pre-pandemic levels. The primary beneficiary of these products can be United Spirits Limited & United Breweries Limited. Also, makers of consumer electronic goods such as Symphony, Voltas, and Dixon Technologies are seeing their sales increase this summer. Ice-cream and cold drink sellers such as HUL, Vadilal, Pepsi, and Coca-Cola are also some beneficiaries!
Note: The companies discussed in the article are not investment recommendations.
What Does it Mean for Investors?
Although the companies discussed above have given mixed results in terms of their share price return to date, the gist is that investors can constantly keep hunting for short-term tactical opportunities like these to benefit from the ongoing trends!