Beat the heat: 5 stocks that could keep your portfolio cool this scorching summer
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As India braces for what is expected to be one of its harshest summers in recent memory, the soaring mercury is not just pushing people indoors, it is also heating up specific pockets of the stock market. This year, rising temperatures, longer heatwave spells, and strong seasonal forecasts are creating a sweet spot for investors looking at sectors like cooling appliances and power.In summary, as the temperatures soar, sectors tied to cooling, consumption, and power are likely to stay hot on Dalal Street. Stocks like Blue Star Whirlpool , and selected renewable energy plays could offer a chance for investors to not just beat the heat — but also keep their portfolios refreshingly cool.Atish Matlawala, Senior Fundamental Analyst at SSJ Finance & Securities, points out that demand for ACs is poised to surge by over 25% this season. "Companies are gearing up for a record season, with Voltas , Blue Star, and Havells being the three major listed players. Among them, Blue Star stands out for its consistent performance, stable margins, and healthy growth," he says.Blue Star, he notes, is not only strong in the residential AC segment but also commands a solid position in the centralized and commercial AC market. Its current order book for commercial cooling solutions stands at Rs 6,800 crore.The company's focus on innovation — with new model launches ahead of peak season — puts it in a sweet spot to capitalize on the demand spike. "It's not just about consumer sales. their project pipeline gives revenue visibility beyond the summer surge," Matlawala adds.While ACs will dominate headlines, the rise in temperatures is also pushing up the demand for electricity. However, the worry of power shortages, which has often accompanied past heatwaves, seems muted this time. Matlawala believes the sector is better prepared. "Companies have built sufficient capacity. We do not foresee a major demand-supply mismatch this summer," he says.On the broader opportunity, Atul Parakh, CEO of Bigul, agrees that the entire cooling product ecosystem is seeing a positive rub-off."The Indian Meteorological Department has forecast higher-than-normal temperatures, and that's directly leading to a rise in sales of ACs, refrigerators, and air coolers. Coupled with India's national push towards renewables, energy stocks linked to green power are also an attractive thematic play this summer," Parakh said.Meanwhile, from a technical perspective, cooling product stocks are already displaying resilience. Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets , highlights Whirlpool as a stock showing notable strength compared to benchmark indices."Whirlpool is holding firm and showing higher relative strength. One can consider accumulating the stock at current levels or even on dips, with an upside potential of 15–20% from here," Vasudeo recommends.Orient Electric is another player, where the management remains optimistic about Q1 performance, supported by severe summer forecast across India."At the CMP, the stock trades at 38.7x of FY26 EPS. We maintain a Buy on the stock with a target price of Rs 310," said Anand Rathi Research.However, there are some risks. Reports suggested that AC sales in the upcoming April to June quarter could be negatively affected due to muted sales in March and April resulting from a delayed summer. If this materialises, then primary sales for many players in the cooling business could get impacted.The uptick in summer-driven demand also needs to be weighed with valuations, especially as some of the major players have already seen a run-up in stock. Analysts advise a staggered approach — entering stocks on declines and focusing on companies with pricing power and brand strength.Investors looking to ride the summer trade should also be mindful of broader market trends and upcoming macro events that could cause volatility. But fundamentally, the theme remains intact.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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