Will the summer temperatures make them go higher this time? 5 stocks whose fortunes are dependent on how much you sweat
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9 months ago
How monsoons pans out have a strong bearing on the overall economic numbers of the companies. However there are companies whose fortunes are linked with what happens before monsoons, that is summer season. Given the fact that we are about to see the start of the season, first forecasts from IMD about how the summer season is likely to pan out have started to come in and IMD is indicating that average temperatures may be higher this year.While the white good companies in general tend to see a bump up in their sales, but there are a select few whose large part of the sales and the bottomline contributions comes from air conditioners or air coolers part of the business. For these companies, two things are very important. First is what is the average length of the summer season and secondly what average temperature during those months. Last year these companies underperformed as the summer season got late. But as the street is always ahead in discounting what will happen in future, these stocks should be on the watch list as the run up in stock will happen much before you feel the summer heat.
Economic Times