Consumer Durables share price target

Price hikes of 20-25% over the past 18 months, ~200bps increase in interest rates as well as higher electricity rates have resulted in 13-28% increase in the cost of ownership of white goods.

OUR TOP PLAYS Positive: Polycab India, Dixon Technologies Negative: Symphony Ltd

Most dealers indicated volume growth is likely to be in mid-single digits in Q2FY23 due to large base (Sept’21) and price hikes (in Jul-Sep’22).

Expect modest 12% YoY topline growth and flattish net profit for our consumer durables coverage

Positive momentum in housing and jobs creation augurs well for long-term demand of consumer durables

Vedanta-Foxconn semiconductor JV a key long-term positive for consumer durables sector as it marks the onset of local semiconductor supply

While we model EBITDA margin expansion for the sector in H2FY23 due to steep correction in input prices.