With a warmer summer expected this year, the writing is on the wall for consumer stocks from air conditioning and other related industries.

With a warmer summer expected this year, the writing is on the wall for consumer stocks from air conditioning and other related industries. Analysts at ICICI Direct have picked three stocks that could rise this summer and are also seen favorably on the charts. “Consumer goods have undergone a significant price/time correction in recent months. Within the discretionary space, stocks in the air-conditioning segment look relatively better on technical charts and relative strength rankings, despite recent volatility in commodity prices,” said ICICI Direct. The brokerage firm has chosen Havells India, Voltas and Amber Enterprises as its preferred stock.

Havells India
Target: Rs 1,320

ICICI Direct analysts say consumer discretionary stocks now form a foundation at key support points. “Havells is poised for a 52-week long-term EMA with oversold values ​​after 30% correction of lifetime highs, offering a favorable risk-reward configuration,” they said. Havells stocks have held their 52-week EMA on numerous occasions over the past decade, excluding 2020, and have made a strong comeback. ICICI Direct expects the stock to move towards Rs 1,320 per share, which is a 61.8% retracement of its recent decline.

In essence, Havells is the largest electrical appliance and equipment manufacturer in India with a market share between 6% and 20%. “A resurgence in the real estate sector will help drive increasing demand for consumer products such as fans, lighting, air conditioners, etc., where Havells is a key player,” the report said. The fixed price target implies an increase of 14%.

Target: Rs 1,470

It appears Voltas stock has spawned a breakout above the falling supply line that lines up with recent highs, signaling a resumption of upward movement as strong buying demand. “We expect the stock to move towards Rs 1470 levels as it is 138.3% external retracement from the previous major decline,” said ICICI Direct. Voltas is the leader in the AC industry with a market share of almost 26%. “Voltas, with its strong supply chain network, will be able to reap the benefits of the upturn in the real estate sector,” analysts said. The price target suggests an increase of 12%.

Amber Enterprises
Target: Rs 4260

Analysts see the stock poised to break above last year’s range, boding well for its next rise. “The stock has been resilient during the recent market correction and is poised to generate a breakout above last year’s range, signaling a resumption of upward movement and providing another entry point,” the report said. The price structure is also seen as positive as the stock has undergone a superficial retracement in the past 12 months, moving up just 38.2% from the previous 12 months. The target price of Rs 4,260 points to 14% upside potential.

ICICI Direct believes the air conditioner industry has lost two consecutive summers due to pandemic-induced lockdowns and unusual rains, but it could make a comeback this year. With rising input prices, companies have also increased prices. “We believe the price increases will be cushioned, supported by strong demand for premium products and new product launches, especially from organized players,” she added.

This post Summer stocks to buy: Havells, Voltas and Amber stocks could rise 12-14% as warm weather kicks in

was original published at “https://www.financialexpress.com/market/stocks-to-buy-havells-india-voltas-amber-ac-industry-shares-to-soar-as-summers-come-calling/2466559/”