Consumer durable firms ramp up production ahead of festive demand
News: According to The Economic Times, consumer durables firms have ramped up production of television, refrigerators, washing machines by up to 50% YoY in anticipation of good festive demand.
View: We believe start of festive season, smoothening raw material supplies and normalised inventory level are likely to boost demand for consumer durables in Q2FY23. In addition, price hikes and easing raw material prices from their peak will help provide respite in gross margins, going forward. We believe the key beneficiaries under our coverage universe will be Havells India and Voltas.