BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
During April-May 2023 consumer demand was soft across categories (barring cable and wires) due to unseasonal rains and inflation. June saw demand recovery leading to normalization of channel inventory.
B2B business continued resilient performance led by infrastructure and real estate activity. Gross margins improved with stability in commodity prices and better product mix.
However, Ebitda margins of most companies continued to remain under pressure, due to insufficient price increases and normalization of advertising and promotion spends.
Our view
Upcoming festive season is the key to watch for boost in demand, for consumer appliances. Premium fans segment will continue to gain with increase in replacement demand.
Demand environment in cables and wires continues to remain strong, healthy order book and strong industry tailwinds should augur well for electrical manufacturing services companies. Price increase in fans is likely, due to higher BEE related costs and aggressive discounting in Q1 FY24.
We expect margins of consumer durable companies to improve in ensuing quarters with softening of raw material costs, and better operating leverage.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
