Consumer Durables share price target

onshore manufacturing of critical components like Compressors, Motors, PCBs, LED chips amongst others. We remain unsure on the participation of shrink lead times thereby reducing working capital requirements. We continue to maintain our positive stance on consumer durables space given huge penetration scope and market consolidation. Amongst our coverage universe, Voltas/ Lloyd (Havells) stand to benefit from AC PLI while...

onshore manufacturing of critical components like Compressors, Motors, PCBs, LED chips amongst others. We remain unsure on the participation of shrink lead times thereby reducing working capital requirements. We continue to maintain our positive stance on consumer durables space given huge penetration scope and market consolidation. Amongst our coverage universe, Voltas/ Lloyd (Havells) stand to benefit from AC PLI while...

OUR TOP POSITIVE PLAYS: HUL, Dabur, Asian Paints, Varun Beverages, D-Mart, Relaxo, Trent, V-Mart.

Our coverage universe is likely to see a 50 bps margin contraction due to a sharp rise in raw material prices. Palm oil, copra prices have risen 47%, 25%, respectively, in the last one year. Also, crude prices have risen above US$60 per barrel. Further, tea prices are still up ~50% YoY. This has pushed FMCG companies to take price hikes to the tune of 5-12%. We expect gross margin contraction for HUL, Marico and Tata Consumer. However, favourable prices of sorbitol & calcium carbonate would enhance gross margins for Colgate. Though milk prices have risen sharply in the last...

4Q has seen positive demand environment despite pre-buying in Dec & multiple rounds of price hikes (commodity inflation). We expect consumer durables universe to register healthy growth rates and end the year on a high given 1) positive consumer sentiment, more so in rural India 2) soaring temperatures aiding cooling products portfolio 3) share gains by large organized players and 4) low base in 4Q20 due to complete lockdown impact. We expect Sales/EBITDA/PBT/Adj. PAT growth of 34.3%/ 56.8%/ 58.8%/ 52.6% across our coverage universe. Commodity prices continued to show...

4Q has seen positive demand environment despite pre-buying in Dec & multiple rounds of price hikes (commodity inflation). We expect consumer durables universe to register healthy growth rates and end the year on a high given 1) positive consumer sentiment, more so in rural India 2) soaring temperatures aiding cooling products portfolio 3) share gains by large organized players and 4) low base in 4Q20 due to complete lockdown impact. We expect Sales/EBITDA/PBT/Adj. PAT growth of 34.3%/ 56.8%/ 58.8%/ 52.6% across our coverage universe. Commodity prices continued to show...

PAT growth of 13.9%/ 28.0%/ 33.2%/ 27.9% across our coverage universe. For We maintain our positive stance on consumer durables given huge penetration scope and market consolidation. We prefer Crompton Consumer and Polycab as our top picks at this point of time. With sharp run up in stock prices, we place ratings/ targets under review for Havells and Voltas. We shall...

PAT growth of 13.9%/ 28.0%/ 33.2%/ 27.9% across our coverage universe. For We maintain our positive stance on consumer durables given huge penetration scope and market consolidation. We prefer Crompton Consumer and Polycab as our top picks at this point of time. With sharp run up in stock prices, we place ratings/ targets under review for Havells and Voltas. We shall...