India's consumer electricals demand soft pre-summer, Jefferies says

Amber Enterprises India

15/03/2024 08:49

** Consumer demand for Indian electricals is soft ahead of
summer, with no major pricing action seen yet, Jefferies says,
citing channel checks
    ** Adds air conditioner (AC) stocking, which was delayed due
to extended winter in north India, likely to gain traction by
month-end on rising temperatures 
    ** Forecast of above-average temperatures fuels expectations
of "good upcoming summer" - note 
    ** Says electronics-maker Amber Enterprises India  AMBE.NS ,
"Lloyd"-branded AC seller Havells India  HVEL.NS , fan maker
Crompton Greaves  CROP.NS  and stabiliser seller V-Guard
Industries  VGUA.NS  are key plays on a "good summer"
    ** Adds AC is 40% of AMBE's sales mix, Polycab India
 POLC.NS  and Finolex Cables  FNXC.NS  have smaller exposures
among cable makers
    ** Except HVEL, which is rated "hold", Jefferies recommends
"buy" on all other stocks 
    ** FNXC up 4.4%, HVEL, AMBE, CROP, VGUA and POLC down
between 1%-2.7% 

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