Consumer Durables - Demand Environment Remains Buoyant: Yes Securities

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Yes Securities Report

Our interaction with the large retailers of consumer durables suggest that demand has been buoyant after some slowdown in July. In the month of August demand has bounced back with double-digit growth across the large appliances and electronics.

Brands have not taken any price increase as commodity prices continues to remain stable. Average selling price for the large appliances have increased by 14% as demand for premium products have seen increase on back of no-costs EMI offered by the brands. Moreover, Independence week sale has been strong with strong double-digit footfall which has been best in past three years.

Channel inventory has now normalized with large retailers working with 40-45 days of inventory. Brands like Voltas-Beko, Lloyd and Whirlpool are the doing better apart from LG that has been market leader in most large appliances category.

There is positive optimism for the upcoming festive season with retailers and are expecting strong festive sales with double-digit growth. We continue to maintain our positive stance on the sector with demand trending better with increasing ASP.

Voltas, Havells and Whirlpool are our preferred pick from the consumer durables space.

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Yes Securities Consumer Durables Electricals.pdf

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