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Consumer durable & Electronics manufacturing services (EMS) stocks

ICICIdirect Research 07 Nov 2025 DISCLAIMER

Consumer durable sector is witnessing modest Q2 impacted by prolonged monsoon and GST cut led demand deferral. However, post GST cut, there has been sharp revival in demand across products which shall be reflected in next quarter i.e. Q3 results. Premiumization trend is already visible which shall be beneficial for large listed organized players.   
W.r.t. Q2 in consumer durable space, the AC and coolers-oriented companies like Blue star, Symphony, along with contract manufacturers like Amber enterprises and Epack durable were particularly impacted owing to prolonged monsoon and high channel inventory. GST cuts have helped in pushing out some inventory which is expected to normalize by end of Q3. Besides, there was an uptick in small domestic appliances i.e. kitchen and household appliances as witnessed in low to mid-teen topline growth of TTK prestige, Stove kraft and Butterfly Gandhimathi despite expected GST deferral. Separately, cable and wire stocks continue to deliver healthy 18-20% topline growth backed by strong demand across real estate and infra projects.     
Within EMS space, contract manufacturers of consumer-oriented products saw mixed results while industrial electronics players continue to deliver healthy growth. On the industrial side, Kaynes and Avalon reported strong topline growth of 58% and 39% YoY resp. along with healthy margin.
Overall, worst in terms of business seems behind for consumer durable companies while outlook is positive. EMS companies are investing in component ecosystem and increasing their value addition in manufacturing, with their long term structurally story intact.
Among our coverage universe, we have BUY rating on Dixon, Kaynes, Syrma SGS, Amber enterprises and Crompton greaves.          

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