Indian electricals, durables cos to see Q3 volume growth on festive demand - Nuvama

KEI Industries

13/12/2023 07:56

** Brokerage Nuvama says Q3 to be better than earlier few
quarters for Indian electricals and durables makers on festive
demand and low base from last year
    ** Brokerage names KEI Industries  KEIN.NS , Polycab India
 POLC.NS , Crompton Greaves  CROP.NS  as its top picks
    ** Fan segment volume expected to grow 8%-12%; low inventory
with dealers to translate to more primary sales for cos such as
CROP and Havells India  HVEL.NS 
    ** Expects 7%-8% volume growth in lighting segment, volume
growth to reflect in rev growth starting FY25 due to low pricing
in FY24
    ** Within cables and wires, brokerage expects POLC volumes
to grow 18%-20%; others' likely to be lower due to capacity
constraints
    ** Says HVEL's new capacities should start around Q4 while
KEIN capacities just started
    ** Daikin and HVEL's Lloyds division have gained market
share in the air conditioner segment due to their prices being
10%-15% lower than peers; brokerage expects double-digit growth
for Voltas'  VOLT.NS  room air conditioner segment
    ** CROP, KEIN, POLC shares up between 0.6% and 1%; VOLT,
HVEL down 0.3% and 1.7%

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))