Earlier in the day, PG Electroplast announced that it was able to identify and install alternative solutions to LPG at its production facilities, which has resulted in Room AC production returning to “almost normalized” levels.
The company also said that with this solution, it has also been able to address the LPG challenges to a large extent for the time being.
PG Electroplast counts Blue Star, Lloyds, Voltas, Whirlpool of India as among its key clients, and nearly 74% of its topline for the first nine months of the current financial year. The company had to suffer a stoppage in production due to the shortage of LPG due to the Iran war, which led to suppliers cutting down supply.
AC makers like Blue Star, Voltas and peers also come into the spotlight during this period as it marks the onset of the Summer season in India. This time around, summers have already begun at the start of March, with heatwave warnings already been issued across many parts of the country, thereby increasing the demand for coolers and ACs.
Shares of Blue Star are trading 5% higher on Wednesday at ₹1,747.4. The stock is down 10% in the last one month, despite today’s recovery.
Shares of Voltas are trading 4.5% higher on Wednesday at ₹1,360.5 and has also declined 10.5% over the last one month.
Havells India shares are down 9% in the last one month, having gained 4.2% on Wednesday to trade at ₹1,285.8.
While shares of Havells India and Voltas have declined 23% so far from their respective 52-week highs, shares of Voltas are down 14% from their recent peak.
Also Read: Rising power demand this summer season can benefit these stocks, as per Morgan Stanley
