Consumer durable stocks announced a 5% price hike effective from October, signalling cost inflation is being passed on across the sector. This move has lifted market sentiment for key players like Orient Electric, as investors weigh the impact on margins.
Keshav Lahoti of HDFC Securities noted that most of the cost rise is reflected in consumer prices, but certain categories still absorb additional expenses. Despite this, demand across kitchen appliances and cooling products remains robust, offsetting the price pressure.
Induction cooktop demand has cooled from a high base, yet it stays healthy, and the overall July‑September quarter outlook remains positive. Lahoti points out that there is no significant inventory build‑up at the retail level, keeping channel dynamics stable.
Orient Electric, HDFC Securities’ top pick, is expected to continue gaining market share. The company’s valuation sits at roughly 20 times earnings, a marked discount to its long‑term average, which analysts see as a sweet spot for long‑term investors.
While Crompton Greaves explores new categories such as solar and water purifiers, execution will be the key driver for its upside. LG Electronics India remains a negative pick at current valuations, with growth largely driven by price hikes rather than volume.