As summer approaches, here's Rahul Arora's pick in AC stocks and more

Summer is just around the corner, and with the rising temperatures, people are gearing up to stay cool in their homes and offices. This also means a boom in the air conditioning industry, which has traditionally done well during the hot summer months.

As the season heats up, the air conditioning industry is set to thrive, and investors may want to consider companies like Blue Star.

Speaking in an interview with CNBC-TV18, Rahul Arora, CEO of Nirmal Bang Institutional Equities said that among the various air conditioner manufacturers, he prefers Blue Star over Voltas. While both companies are well-established players in the market, Arora believes that Blue Star has a better product portfolio and a stronger brand image. Moreover, with the rising demand for energy-efficient air conditioners, Blue Star's focus on innovation and sustainability gives it an edge over its competitors.

He said, “We will look at names like Voltas and Blue Star, maybe Blue Star more than Voltas. I think the return ratios are also picking up dramatically for Blue Star and I do not think the valuations are demanding at all. So, I would look at those two. I would probably avoid the Whirlpools in the IFBs.”

When it comes to the beverage industry, Arora recommends investing in United Spirits over United Breweries. According to Arora, United Breweries will take some time to recover, given the impact of the pandemic on the hospitality sector. In contrast, United Spirits have a diversified product portfolio and a strong presence in the premium segment. With the gradual reopening of the economy, Arora expects United Spirits to perform well in the coming months.

Arora also shared his thoughts on the hotel industry. He does not think that hotels have much room to increase room rates, given the tough economic environment. Instead, Arora suggests investing in quick-service restaurants (QSRs) over hotels. With the rise of online food delivery platforms, QSRs have seen a surge in demand, making them a more attractive investment option.

Take on Minda Corp - Pricol

Finally, Arora talked about the automotive component industry, specifically Minda Corp and Pricol. He feels that it would have been better if Minda Corp had come in as a strategic partner in Pricol. Both companies are leaders in their respective fields, and a strategic partnership could have created significant synergies and value for both companies.