Summer Stocks to BUY Today: With the onset of summer, demand for electronic appliances such as air conditioners, refrigerators, and other cooling essentials is expected to surge. This seasonal spike is drawing significant attention to stocks of companies like Voltas and LG Electronics, which are well-positioned to benefit from increased consumer spending.
Adding to the optimism, leading brokerages, including Goldman Sachs and Motilal Oswal, have issued bullish outlooks on these companies, citing strong growth prospects in the consumer electronics segment. Investors are closely watching these stocks as they take centre stage in the summer rally.
The company witnessed strong demand in North and West India, which helped offset a delayed seasonal pickup in the South. Notably, March sales volumes matched the combined sales of January and February.
Channel inventory currently stands at 6–7 weeks and is expected to increase to 8–10 weeks in the near term. Demand continues to be driven largely by first-time buyers and remains closely tied to the intensity of the summer season.
The introduction of new Bureau of Energy Efficiency (BEE)-compliant models is expected to deliver energy savings of 7–8 per cent, enhancing product appeal.
However, the near-term margin outlook remains under pressure due to heightened competition and aggressive discounting. Raw material costs have risen by approximately 2 per cent, though this has been partially offset by price hikes of 5–15 per cent. Copper, which accounts for around 15 per cent of total costs, continues to be a key factor impacting margins.
Looking ahead, Voltas is undertaking capacity expansion initiatives in Chennai and Waghodia, which are expected to support future growth.
| Company | Brokerage | Rating | Target Price (Rs) | Upside (%) |
| Voltas | Motilal Oswal (MOSL) | BUY | 1,430 | 10.4% |
Shares of LG Electronics were down 5.3 per cent (Rs 80.9) at Rs 1,457. Despite this decline, Goldman Sachs sees an upside of 18.73 per cent.
Goldman Sachs expects the company to deliver double-digit revenue growth in FY26, with profitability remaining strong and margins projected to stay in double digits for the full year.
LG Electronics India is also targeting an export mix of over 20 per cent by 2030, reflecting a strategic push to expand its global footprint.
However, the brokerage has moderated its earnings estimates due to demand uncertainties and rising cost pressures, which may weigh on near-term performance.
Other brokerage views on LG Electronics
Motilal Oswal has also reiterated its BUY rating on LG Electronics, setting a target price of Rs 1,860, implying an upside of nearly 28 per cent. The brokerage believes demand conditions remain robust, with the January–March 2026 quarter witnessing healthy growth.
Additionally, Emkay Global has maintained a BUY rating with a target price of Rs 1,900, while Centrum Equity has also reiterated its BUY stance, assigning a revised target price of Rs 1,850.
Overall, brokerages remain optimistic about LG Electronics India, with projected upside potential of up to 30 per cent from current levels.
With rising summer demand acting as a strong tailwind, both Voltas and LG Electronics are attracting investor interest. While near-term challenges such as cost pressures and competition persist, the long-term growth outlook remains positive, supported by strong demand trends, product innovation, and strategic expansion plans.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
