With sales of cooling products turning out dismal this summer due to unseasonal rains, the stocks of related companies are now off their March highs.
Shares of fan and air conditioner makers such as Voltas, Symphony, Orient Electric, Johnson Controls-Hitachi Air Conditioning and Crompton Greaves are down 5-23 per cent since March when the summer season saw a firm onset. In comparison, the BSE Sensex index is up 10 per cent.
Analysts expect the weakness to continue in the near-term as lower sales offtake will lead to companies missing their earnings estimates for the April-June quarter (Q1FY24). However, they suggest that investors use the declines to add the stocks.