Consumer Electricals - Healthy Growth In Cables, Wires To Sustain; FMEG, White Goods In Slow Lane: Systematix

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..Systematix Research Report.Consumer electrical companies could witness another soft quarter impacted due to inflation-led weak consumer sentiment. However, we expect outperformance in cable and wire segment to continue. A ~6% QoQ decline (down ~3% YoY) in copper prices in Q1 on a three-month average rolling basis also aided to healthy growth in cables and wires category. Demand from the housing and infrastructure sectors stayed healthy. Demand from export markets was also strong. We expect the segment revenue of five companies under coverage to grow at a healthy 13% YoY, led by Polycab India Ltd. and KEI Industires Ltd. Margins are expected to be broadly stable. In electrical consumer durable, we expect our coverage universe of eight companies to report a low 4% YoY (2% QoQ) revenue growth, led by diversified players such as Bajaj Electricals Ltd. and Havells India Ltd. On a low base, we expect margins to normalise for all players. Unseasonal rains hurt demand of cooling products such as fans and coolers. While high channel inventory of non-star rated fans got liquidated during the quarter, companies became aggressive on pricing, discounts and schemes to push star rated fans volumes. Traction in business-to-consumer lighting stayed healthy, with business-to-business and business-to-government seeing higher ordering. Significant price correction in LED products pose a risk on revenue growth in FY24. Weakness in kitchen appliances extended in Q1 as well. We remain inclined towards cables and wires segment due to its robust growth outlook but with moderate return expectation post significant re-rating in scripts. Bajaj Electricals and Havells are our preferred picks in the pack..Click on the attachment to read the full report:.Cement Sector Q1 Results Preview - Lower Ebitda Growth Despite Robust Volume Growth: Systematix.DISCLAIMERThis 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.

Consumer Electricals - Healthy Growth In Cables, Wires To Sustain; FMEG, White Goods In Slow Lane: Systematix

Consumer electrical companies could witness another soft quarter impacted due to inflation-led weak consumer sentiment.

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