Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Markets / Stock Markets/  Blue Star, Hitachi to Subros: Why AC maker stocks are skyrocketing today — explained
BackBack

Blue Star, Hitachi to Subros: Why AC maker stocks are skyrocketing today — explained

Stock market today: AC maker shares such as Amber Enterprises, Blue Star, Johnson Hitachi and Subros saw sharp gains on Tuesday due to GoI's announcement that all trucks in India will need to have air-conditioned driver compartments by 2025

Stocks to buy today: Long-term investors have been advised to consider adding Voltas, Amber Enterprises, Johnson Hitachi and Blue Star to their portfolios, say experts.Premium
Stocks to buy today: Long-term investors have been advised to consider adding Voltas, Amber Enterprises, Johnson Hitachi and Blue Star to their portfolios, say experts.

Stock market today: Despite weak sentiments on Dalal Street today, air conditioner (AC) maker stocks have witnessed sharp upside movement during Tuesday deals. Among AC maker majors, Amber Enterprises shares shot up to the tune of 10 per cent, Blue Star share price ascended around 4 per cent, Johnson Hitachi share price shot up around 4 per cent whereas Subros shares, which has an inbuild AC maker system, appreciated 20 per cent and hit upper circuit. However, Volatas share price witness sell on rise sentiments during Tuesday deals and the stock was trading in red zone a around 2:30 PM.

Speaking on the reason for dip in AC maker stocks, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "AC maker stocks are rising today as Transport Minister Nitin Gadkari announced yesterday that in India, all trucks will need to have air-conditioned driver compartments beginning 2025. This has triggered short term positive sentiments in regard to these AC maker stocks as auto companies won't be able to develop ACs for the drivers' cabin. In that case, market is expecting that the ACs for the trucks would be outsourced to these leading AC maker companies that is going to create an additional business avenue for these white goods companies."

On how it would benefit such AC maker companies, Anuj Gupta, Vice President — Research at IIFL Securities said,"As there will a new business emerging in the market for these AC maker companies. It is going to strengthen balance sheet of the comapnies and its margins are expected to improve after this development. However, it is not going to happen overnigh. The decision is expected to get implemented by 2025. But, this is not a deadline that every auto company is bound to implement. Ashok Leyland has announced to come with truct with AC cabin for drivers. Some other leading auto majors are expected to follow suit. But, it's for sure that an extra business revenue is expected to emerge in next two to three years."

AC stocks to buy today

Asked about stocks to buy in the wake of this new development, Anuj Gupta of IIFL Securities suggested long term investors to add Voltas, Amber Enterprises, Johnson Hitachi and Blue Star. He said that above mentioned companies are market leaders and auto companies are expected to pick and choose AC maker companies on the basis of their performance and market face value.

On Monday, Minister for Road Transport and Highways Nitin Gadkari announced at an even organised by Mahindra Logistics that all trucks made in India will need to have air-conditioned driver compartments beginning 2025.

".... before coming to this event today, I have signed the file that mandates air conditioning in truck driver compartments," Nitin Gadkari said while speaking at the above mentioned event.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 20 Jun 2023, 02:54 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started