Top Three Summer Stocks with Highest 3-Year Sales CAGR - Are you looking for it?

As temperatures rise, companies in the beverage and cooling solutions sector witness increased demand, making them attractive investment opportunities. Based on three-year sales CAGR, here are the top three summer stocks that have shown strong growth in revenue over the past three years.

Varun Beverages: Varun Beverages, a major player in the beverage industry, has reported a three-year sales CAGR of 31 per cent. With a market capitalization of Rs 1,83,088.37 crore and a P/E ratio of 69.15, the company has demonstrated strong growth in recent years. However, despite a 40.3 per cent increase in quarterly profit and 38.28 per cent growth in quarterly sales, the stock has seen a 1-year return of -4.83 per cent. Investors will closely monitor how the company navigates demand fluctuations in the summer season.

Vadilal Industries: Vadilal Industries, a leading name in the ice cream segment, has achieved the highest three-year sales CAGR of 34 per cent among the three companies. The company, with a market capitalization of Rs 3,797.8 crore and a P/E ratio of 24.34, has posted 29.11 per cent quarterly profit growth and 16.98 per cent quarterly sales growth. However, quarter-on-quarter profits and sales have declined by 69.39 per cent and 31.02 per cent, respectively. Despite these fluctuations, the stock has delivered an impressive one-year return of 33.93 per cent, reflecting strong investor interest.

Blue Star: Blue Star, a key player in air conditioning and refrigeration solutions, has also reported a three-year sales CAGR of 31 per cent. With a market capitalization of Rs 45,259.98 crore and a P/E ratio of 82.59, the company continues to benefit from rising demand for cooling appliances. The company posted a quarterly profit growth of 22.72 per cent and quarterly sales growth of 25.26 per cent, with a QoQ profit increase of 37.89 per cent and QoQ sales growth of 23.35 per cent. The stock has delivered a one-year return of 68.95 per cent, making it an attractive choice for investors looking at summer-themed stocks.

These companies have demonstrated strong revenue growth over the past three years, with seasonal demand playing a key role in their performance. Investors looking to capitalize on summer-driven sales growth may find these stocks worth tracking in the upcoming months.