Consumer Durables share price target

Currency Outlook: Rupee slips to a record-low: What to make of it? WPI: WPI remains elevated

Currency Outlook: Pressure on INR. Monthly Strategy Wrap: Mixed outlook. Consumer Durables: FY22 Review Margin gains elusive

War, inflation, supply chain disruptions and Covid all dented consumer durable margins, but likely to be transient

Indonesia, the largest producer/exporter of palm oil, has announced a ban of palm oil exports. The ban comes as another blow after the surge in oils due to the Ukraine-Russia war. Given that plamoil is 60% of oil imports and...

OUR TOP PLAYS Positive: Amber Enterprises, Polycab India Negative: Symphony Ltd

Demand softness sustains in early part of 4Q; picks up in March: Post festive sales in 3Q demand environment softened. The trend continued in early part of 4Q with onset of 3rd Covid wave. However, with subsiding infection rates...

After showing some signs of stabilisation in Q3FY22, crude & palm oil prices (both up ~60% YoY), started shooting up from February-end due to RussiaUkraine crisis. This resulted in another steep rise in inflation for consumer companies. Most FMCG companies are likely to witness 200-400 bps gross margin contraction due to continued inflation in crude, palm, milk & wheat. Copra & tea prices are down 10-20% YoY. Gross margin contraction is likely to be offset by cut in ad & overhead spends. We expect a 25 bps contraction in operating margin for our coverage universe. TCPL would see ~400 bps expansion in gross as well as operating margin. We estimate 50-150 bps...

Key raw materials such as titanium dioxide (TiO2), vinyl acetate monomer (VAM), aluminium, high density polyethylene (HDPE), low density polyethylene (LDPE) witnessed upward movement in the range of 9-60% YoY. We believe limited price hike against the steep rise in raw material prices is likely to weigh on gross margins. As a result, the EBITDA margins of coverage companies are likely to decline 245 bps YoY. However, on a sequential basis the EBITDA margin is likely to remain flat supported by price hikes taken by the companies....