Consumer Durables Q2 Results Preview - Soft Demand, Wires And Cables Continues To Outperform: PL Capital

PL Capital Report

Consumer durables sector experienced weak consumer demand during Q2 FY25 due to soft pickup in the festival season (mainly in onam) and heavy rains. However, the wires and cable segment continued to outperform, driven by healthy cable demand from infrastructure projects.

We expect our consumer durables universe to register sales/Ebitda/profit after tax growth of 11.5%/14.5%/20.1% YoY in Q2 FY25. Furthermore, we anticipate Polycab and RR Kabel to outperform, while Bajaj Electricals may underperform in sales. In terms of profitability, Crompton, Havells and Voltas are expected to outperform.

We continue our positive view on W&C companies led by healthy growth and returns profile, and expanding opportunity market.

Polycab, KEI and RR Kabel continue to be our top picks. Further, we have ‘Buy’ rating on Crompton, which is expected to continue its growth momentum, despite near-term demand challenges, through market share gain across its major segments.

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