Recovery time for India's electrical consumer durables makers, says JM Financial

Stove Kraft

22/06/2023 10:33

** Brokerage JM Financial says electrical consumer durables
to see recovery in growth on the back of higher disposable
incomes and low food inflation 
    ** India's macro environment continues to be stable, rural
demand scenario shaping up well - JM Financial note 
    ** Stable raw material prices should "alleviate margin
pressure", premiumisation and operating leverage to help
margins, note says 
    ** Brokerage says tepid demand in appliances continued in
Q1FY24, unseasonal rains in March/May impacted channel offtake 
    ** We remain positive for medium to long-term, given macro
tailwinds, low penetration for some of the categories and
category expansion opportunities - JM Financial analysts
    ** Rating house maintains "buy" on Bajaj Electricals
 BJEL.NS , V-Guard Industries  VGUA.NS , Havells  HVEL.NS  and
Stove Kraft  STOE.NS ; "hold" on Crompton Greaves Consumer
Electricals  CROP.NS  and TTK Prestige  TTKL.NS   

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))