Summer Stocks In India – Stocks to Watch This Summer

The table below summarises the performance of summer stocks in India, showcasing notable returns over the past year. Amber Enterprises India Ltd leads with a strong 68.60% return, followed by Epack Durable Ltd at 82.09%. Other impressive performers include Johnson Controls-Hitachi Air Conditioning India Ltd with 49.69%, and Blue Star Ltd at 28.02%.   

Introduction To List of Summer Seasonal Stocks In India

Varun Beverages Ltd

Varun Beverages Limited (VBL) is an Indian beverage company that functions as a franchisee of PepsiCo. VBL produces and distributes a variety of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including packaged drinking water under PepsiCo’s trademarks. 

The CSD brands produced and sold by VBL include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Mountain Dew Ice, Seven-Up Nimbooz Masala Soda, Evervess, Sting, Gatorade, and Slice Fizzy Drinks.  

• Close Price ( ₹ ): 532.35
• Market Cap ( Cr ): 180033.62
• 1Y Return %: -7.90
• 6M Return %: -12.63
• 1M Return %: 1.03
• 5Y CAGR %: 55.87
• % Away From 52W High: 27.95
• 5Y Avg Net Profit Margin %: 9.82 

Havells India Ltd

Havells India Limited is an Indian company that specializes in fast moving electrical goods (FMEG) and the manufacturing of power distribution equipment. Its product range includes industrial and domestic circuit protection devices, cables, wires, motors, fans, switches, home appliances, air conditioners, water heaters, power capacitors, and lighting solutions for various applications. 

The company operates a network of over 700 exclusive brand showrooms known as Havells Exclusive Brand Stores nationwide, allowing customers to select from a diverse range of products. 

• Close Price ( ₹ ): 1604.60
• Market Cap ( Cr ): 100599.07
• 1Y Return %: 2.33
• 6M Return %: -6.89
• 1M Return %: 8.18
• 5Y CAGR %: 25.01
• % Away From 52W High: 31.25
• 5Y Avg Net Profit Margin %: 7.59 

Dabur India Ltd

Dabur India Limited operates as a fast-moving consumer goods (FMCG) company with divisions in Consumer Care, Food, Retail, and Other segments. The Consumer Care division encompasses home care, personal care, and health care products. Within the Food segment, the company offers juices, beverages, and culinary items. 

The Retail division focuses on retail stores, while the Other segments include Guar gum, pharma, and other miscellaneous products. Dabur’s product range spans categories such as hair care, oral care, health care, skin care, home care, and Energizers, Ethicals.  

• Close Price ( ₹ ): 491.70
• Market Cap ( Cr ): 87144.73
• 1Y Return %: -3.48
• 6M Return %: -9.11
• 1M Return %: -3.87
• 5Y CAGR %: -0.30
• % Away From 52W High: 36.67
• 5Y Avg Net Profit Margin %: 15.43 

United Breweries Ltd

United Breweries Limited is an Indian beer company that manufactures, buys, and sells beer and non-alcoholic beverages. The company operates manufacturing facilities in India and is divided into two segments. The beer segment focuses on the production, purchase, and sale of beer, as well as brand licensing. 

The non-alcoholic beverages segment is responsible for the manufacturing, purchasing, and selling of non-alcoholic drinks. The company offers a variety of beer brands including Heineken, Kingfisher, Amstel Bier, and others. It also provides a range of non-alcoholic options such as packaged drinking water, power sodas, and non-alcoholic beer.

• Close Price ( ₹ ): 2176.60
• Market Cap ( Cr ): 57550.42
• 1Y Return %: 7.17
• 6M Return %: 10.02
• 1M Return %: 15.35
• 5Y CAGR %: 19.84
• % Away From 52W High: 5.66
• 5Y Avg Net Profit Margin %: 4.88 

Voltas Ltd

Voltas Limited is an India-based provider of air conditioning and engineering solutions, specializing in project execution. The company operates through three main segments: Unitary Cooling Products, Electro-Mechanical Projects and Services, and Engineering Products and Services.

The Unitary Cooling Products segment focuses on the manufacturing, sale, and after-sales service of cooling appliances and cold storage products, along with facilities maintenance and hard services. This includes operations and maintenance contracts across various sectors, retrofits, and energy management services.  

• Close Price ( ₹ ): 1276.00
• Market Cap ( Cr ): 42220.89
• 1Y Return %: -9.77
• 6M Return %: -28.92
• 1M Return %: -9.91
• 5Y CAGR %: 21.24
• % Away From 52W High: 52.42
• 5Y Avg Net Profit Margin %: 4.58 

Blue Star Ltd

Blue Star Limited operates as a company specializing in heating, ventilation, air conditioning, and commercial refrigeration services. The company is divided into three segments: Electro-Mechanical Projects and Commercial Air Conditioning Systems, Unitary Products, and Professional Electronics and Industrial Systems. 

The Electro-Mechanical Projects and Commercial Air Conditioning Systems segment covers central air-conditioning projects, electrical contracting, and packaged air-conditioning services, including manufacturing and after-sales support. The Unitary Products segment focuses on cooling appliances and cold storage products, along with manufacturing and after-sales service.  

• Close Price ( ₹ ): 1849.60
• Market Cap ( Cr ): 38030.51
• 1Y Return %: 28.02
• 6M Return %: -1.07
• 1M Return %: -11.88
• 5Y CAGR %: 45.87
• % Away From 52W High: 30.68
• 5Y Avg Net Profit Margin %: 3.38 

Amber Enterprises India Ltd

Amber Enterprises India Limited specializes in the production of consumer durable items and serves as a provider of solutions for the air conditioner original equipment manufacturer (OEM)/original design manufacturer (ODM) sector in India. 

Additionally, Amber Enterprises manufactures key functional parts of these systems, such as heat exchangers, motors, and multi-flow condensers, in conjunction with other components like sheet metal parts, copper tubing, and various plastic components produced through extrusion, vacuum forming, and injection molding processes. 

• Close Price ( ₹ ): 6388.00
• Market Cap ( Cr ): 21618.27
• 1Y Return %: 68.60
• 6M Return %: 2.12
• 1M Return %: -5.66
• 5Y CAGR %: 42.55
• % Away From 52W High: 28.01
• 5Y Avg Net Profit Margin %: 2.69 

Whirlpool of India Ltd

Whirlpool of India Limited is an Indian company that manufactures and markets a wide range of home appliances. It primarily focuses on producing and trading refrigerators, washing machines, air conditioners, microwave ovens, kitchen appliances, and small appliances, serving both domestic and international markets. 

Additionally, it provides product development and procurement services to Whirlpool Corporation in the U.S. and other group companies. Its refrigerator range includes single, double, three-door, bottom mount, side-by-side, and four-door models. It also offers semi-automatic, top load, and front load washing machines, split air conditioners, and various microwave ovens, including convection, grill, and solo models.

• Close Price ( ₹ ): 1187.05
• Market Cap ( Cr ): 15060.32
• 1Y Return %: -23.58
• 6M Return %: -47.01
• 1M Return %: 10.98
• 5Y CAGR %: -8.37
• % Away From 52W High: 106.37
• 5Y Avg Net Profit Margin %: 5.48 

Johnson Controls-Hitachi Air Conditioning India Ltd

​Johnson Controls-Hitachi Air Conditioning India Limited (JCHAC) is a leading manufacturer of air conditioning solutions in India. Established as a joint venture between Johnson Controls and Hitachi Appliances in October 2015, the company offers a diverse range of products, including room air conditioners, commercial air conditioners, and large-scale HVAC systems. 

Headquartered in Kadi, Gujarat, JCHAC operates a manufacturing facility in North Gujarat and maintains a nationwide presence with 18 branches and four regional service centers. The company is recognized for its commitment to innovation, quality, and energy-efficient solutions in the HVAC industry.​

• Close Price ( ₹ ): 1779.50
• Market Cap ( Cr ): 4838.62
• 1Y Return %: 49.69
• 6M Return %: -18.91
• 1M Return %: -3.79
• 5Y CAGR %: -2.78
• % Away From 52W High: 47.24
• 5Y Avg Net Profit Margin %: -0.17 

Epack Durable Ltd

​Epack Durable Ltd is a prominent Indian Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM) specializing in consumer durables. Founded in 2003 by Mr. Ajay D.D. Singhania and Mr. Bajrang Lal Bothra, the company is headquartered in Greater Noida, Uttar Pradesh. 

The company has established long-term relationships with leading brands like Voltas, Haier, Philips, Godrej, Daikin, Havells, Bosch & Siemens, Bajaj, Crompton & Greaves, and Blue Star. In 2024, Epack Durable went public with an IPO of ₹640 crore and has since formed strategic partnerships with companies like Symphony Limited and Hisense Singapore to expand its product offerings and market reach. ​ 

• Close Price ( ₹ ): 375.75
• Market Cap ( Cr ): 3605.99
• 1Y Return %: 82.09
• 6M Return %: -16.47
• 1M Return %: 5.91 
• % Away From 52W High: 78.30  

What Are Summer Stocks In India?

Summer stocks in India refer to stocks of companies that tend to perform well during the summer season. These are typically companies in sectors such as air conditioning, consumer durables, beverages, and hospitality, which see increased demand due to seasonal factors. For instance, companies manufacturing air conditioners and cooling products usually experience a surge in sales due to the rise in temperatures.

Features Of Summer Season Stocks In India

The key features of summer season stocks in India revolve around companies that see increased demand during the warmer months, especially those in the cooling, beverage, and hospitality sectors. These stocks benefit from seasonal consumption patterns, making them appealing to investors.

1. Seasonal Demand Boost: Summer stocks experience a surge in demand as temperatures rise. Companies producing cooling appliances, like air conditioners, and consumer goods benefit from heightened consumer spending during the season, leading to increased sales and revenue growth.
   
2. Improved Profit Margins: With higher sales during the summer, companies often see better profit margins. Seasonal demand allows businesses to sell products at a premium, enhancing profitability and financial performance during the warmer months.
   
3. Short-Term Investment Opportunities: Investors focus on summer stocks to seize quick gains from seasonal trends. These stocks can offer short-term returns, making them ideal for those looking to capitalize on market movements driven by increased demand for specific products.
   
4. Weather Sensitivity: These stocks are highly sensitive to weather conditions, with warmer climates directly impacting consumer behavior. Any fluctuations in weather patterns, such as an early or delayed summer, can influence sales, affecting stock performance.
   
5. Consumer Behavior Influence: Consumer spending habits play a crucial role in the performance of summer stocks. With rising temperatures, people often prioritize cooling products and outdoor leisure activities, which boosts demand for products like air conditioners, beverages, and ice cream. 

List of Summer Seasonal Stocks Based on 6 Month Return

The table below shows the list of summer seasonal stocks based on a 6-month return.

Best Summer Seasonal Stocks Based on 5 Year Net Profit Margin

The table below shows the best summer seasonal stocks based on a 5-year net profit margin.

Top Summer Seasonal Stocks Based on 1M Return

The table below shows the top summer seasonal stocks based on 1-month return.

Historical Performance of Summer Season Stocks In India

The table below shows the historical performance of summer season stocks in India and the 5-year CAGR.

Factors To Consider When Investing In Summer Season Stocks In India

The factors to consider when investing in summer season stocks in India include understanding the seasonality of demand. These stocks typically see an increase in consumer spending during warmer months, but investors should assess their growth potential and market trends for long-term sustainability.

1. Seasonal Demand Patterns: Understanding the demand fluctuations during the summer season is essential. Companies in sectors like cooling appliances or beverages benefit from seasonal consumption spikes, offering short-term gains, but the trend might not always sustain beyond the season.
2. Product Innovation and Quality: Evaluate the innovation and quality of products offered by summer stocks. Companies with strong R&D and high-quality, energy-efficient products tend to perform better in a competitive market, leading to sustainable demand and profitability.
3. Financial Health of the Company: The financial stability of the company is crucial. A well-managed balance sheet with good cash flow and low debt enables the company to withstand market fluctuations and capitalize on the peak demand periods in the summer.
4. Weather Dependence: Summer stocks are highly sensitive to weather conditions. A prolonged or unusually mild summer can affect sales of products like air conditioners and beverages. Thus, it’s important to monitor climate forecasts and adjust expectations accordingly.
5. Market Competition: The level of competition in the sector should also be considered. Highly competitive markets may lead to margin compression, while less crowded sectors with fewer players may offer more room for growth and higher returns during the summer. 

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Advantages Of Summer Season Stocks In India

The main benefits of investing in summer season stocks in India include the potential for strong short-term gains due to increased seasonal demand. These stocks, typically in sectors like cooling products, beverages, and hospitality, capitalize on higher consumer spending during the summer months.

1. Seasonal Demand Surge: Summer season stocks often experience a surge in demand during the warmer months. With increased consumption of cooling products and beverages, these stocks have the potential for higher sales, leading to strong returns for investors in the short term.
2. Quick Returns on Investment: These stocks can provide quick returns due to the seasonal nature of their products. Investors can take advantage of the rising sales and favorable market conditions during peak summer months, potentially leading to short-term profitability.
3. Increased Consumer Spending: During the summer, consumer spending on air conditioners, cooling products, and beverages typically rises. This increased consumption drives up sales for companies in these sectors, making them attractive investment options for investors looking to capitalize on seasonal trends.
4. Growth in Consumer Goods Sector: Summer season stocks often belong to the consumer goods sector, which tends to show growth during seasonal periods. This creates investment opportunities as these stocks benefit from heightened consumer interest in everyday products like beverages and cooling devices.
5. Diversification of Investment Portfolio: Adding summer season stocks to an investment portfolio can help diversify risks. These stocks perform well in certain periods of the year, giving investors the chance to balance their portfolios with assets that show growth potential during the summer months.

Risks Of Summer Season Stocks In India

The main risk of investing in summer season stocks in India is their dependence on seasonal demand. These stocks may see high returns during peak summer months, but the lack of demand during off-seasons can lead to fluctuations in stock performance.

1. Seasonal Dependency: Summer season stocks are heavily reliant on demand during warmer months. After the season ends, the sales slump, leading to lower revenue and stock performance. This seasonal dependency can make these stocks volatile and unpredictable.
2. Weather Uncertainty: Weather conditions significantly affect the demand for summer products like air conditioners and beverages. A milder summer can result in reduced sales, causing these stocks to underperform and making them vulnerable to unpredictable climate changes.
3. Short-Term Focus: These stocks often deliver short-term gains, but may not offer consistent long-term growth. Once the peak season is over, the stocks may experience a sharp decline in performance, making them unsuitable for long-term investment strategies.
4. Increased Competition: During the summer months, competition in sectors like cooling products and beverages increases, potentially driving down margins. New market entrants and existing players offering competitive pricing may limit the profitability of established companies in this sector.
5. Economic Downturn Impact: Economic slowdowns or financial crises can significantly impact consumer spending. If disposable incomes decline, consumers may cut back on non-essential items like air conditioners or premium beverages, leading to reduced sales and affecting stock performance during the summer months. 

Who Should Invest in Summer Season Stocks?

Investing in summer season stocks is ideal for investors seeking short-term opportunities tied to seasonal demand. These stocks can offer substantial returns during the peak summer months but require a good understanding of market timing and product demand.

1. Short-Term Investors: Summer season stocks are best suited for investors looking for short-term gains. They typically experience high demand and sales during the summer months, making them an attractive option for those seeking quick returns on investment.
2. Risk-Tolerant Investors: Investors with a higher risk tolerance may find summer season stocks appealing. While these stocks can yield great returns, their performance is often volatile due to their reliance on seasonal demand and weather conditions, requiring investors to be comfortable with fluctuations.
3. Sector-Specific Investors: Investors with an interest in specific sectors such as consumer goods, air conditioning, or beverages may benefit from investing in summer season stocks. These stocks perform well in their respective industries during peak seasonal demand, providing a chance for sector-focused growth.
4. Market Timing Enthusiasts: Those who are skilled at market timing and can monitor fluctuations in demand are well-positioned to invest in summer season stocks. By entering before the peak season and exiting after, they can take advantage of high-demand periods. 

Summer Season Stocks In India – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.