4 AC stocks surge 60-130% over last 3 years, but appear weak on SWOT analysis now
By
, ETMarkets.com|
1/6
Cooling Down?
The rise in temperatures throughout the country is set to increase the demand for air conditioners, leading to a surge in sales for AC companies. ETMarkets noticed a trend in the Indian air condition stocks, where most of these companies did not perform well in the short term (1 year), but over a longer period of 3 years, they have recorded gains ranging from 60% to 330% (Data Source: ACE Equity). However, a SWOT analysis reveals that, barring Blue Star, all other stocks do not appear promising as they have more weaknesses than strengths, as per trendlyne.com.
ETMarkets.com
2/6
Sharp India | 3-Year Return: 338%
CMP: Rs 55 | 52-week high: Rs 107 Here are the key weaknesses of the stock according to Trendlyne.com SWOT analysis: -RoCE declining in the last 2 years -Declining profits every quarter for the past 3 quarters -Low Piotroski Score: Companies with weak financials -Book value per share deteriorating for the last 2 years -Fall in quarterly revenue and net profit (YoY)
ANI
3/6
Blue Star | 3-Year Return: 183%
CMP: Rs 1,422 | 52-week high: Rs 1536 Here are the key strengths of the stock: -Growth in net profit with increasing profit margin (QoQ) -Growth in quarterly net profit with an increasing profit margin (YoY) -Company with low debt -Book Value per share improving for the last 2 years -Company with zero promoter pledge -FII/FPI or Institutions increasing their shareholding
Team ProductLine
4/6
Amber Enterprises India | 3-Year Return: 87%
CMP: Rs 1,886 | 52-week high: Rs 4,024 Here are the key weaknesses of the stock according to SWOT analysis: -Highest fall from 52 week high -ROA declining in the last 2 years -Decline in quarterly net profit with falling profit margin (YoY) -Declining net cash flow: Companies not able to generate net cash
Agencies
5/6
Voltas | 3-Year Price Return: 60%
CMP: Rs 814 | 52-week high: Rs 1,317 Here are the key weaknesses of the stock: -ROE declining in the last 2 years -Decline in net profit with falling profit margin (QoQ) -A decline in quarterly net profit with falling profit margin (YoY) -Declining profits every quarter for the past 3 quarters -Declining net cash flow: Companies not able to generate net cash -Major fall in TTM net profit
ETMarkets.com
6/6
Johnson Controls - Hitachi Air Conditioning India | 3-Year Return: -50%
CMP: Rs 1,096 | 52-week high: Rs 2249 Here are the key weaknesses points of the stock as per -Trendlyne’s SWOT analysis: -ROE declining in the last 2 years -Decline in quarterly net profit with falling profit margin (YoY) -Declining net cash flow: Companies not able to generate net cash -Annual net profit declining for last 2 years -Major fall in TTM net profit -Fall in quarterly revenue and net profit (YoY)