Consumer durable stocks, including those of Havells, Voltas, Crompton Greaves, and Symphony, are poised for substantial growth. Goldman Sachs has revised its targets, predicting a significant rise in air conditioner (AC) sales for FY25, with an expected growth rate of 30%, up from the previous estimate of 15%.
Surge in Demand for Cooling Products
Goldman Sachs attributes the optimistic forecast to an unusually hot summer, which has spurred a high demand for cooling products like air conditioners, fans, and air coolers. This increase in demand is evident in both primary and secondary markets. The brokerage firm also noted that Q1 margins are likely to improve due to better operating leverage and reduced discounts.
Havells India Share Price Target
Goldman Sachs has reiterated its buy recommendation for Havells India. The target price has been increased by Rs 200, bringing it to Rs 1,900 per share. This adjustment reflects the company’s robust performance and the growing demand for its products.
Voltas Share Price Target
For Voltas, Goldman Sachs has retained a sell rating. Despite this, the target price has been raised from Rs 1,060 to Rs 1,200. This revision suggests that while the brokerage remains cautious, it recognizes the potential for some growth.
Symphony Share Price Target
Symphony has received a neutral rating from Goldman Sachs, with the target price adjusted to Rs 1,160 from the previous Rs 1,070. This moderate increase indicates a balanced outlook on the company’s future performance.
Crompton Greaves Share Price Target
Crompton Greaves Consumer Electricals has been given a buy rating by Goldman Sachs, with the target price increased from Rs 410 to Rs 450. This upward revision highlights the company’s promising prospects in the consumer durables sector.
In addition to Goldman Sachs, Morgan Stanley has maintained an equal-weight rating on Crompton Greaves, setting a target price of Rs 323. The firm notes that the electrical consumer durables industry is expected to grow by 7-9% in FY25, driven by a shift in consumer preferences towards premium, energy-efficient, and technologically advanced products.
Conclusion
The consumer durables sector is set for significant growth, with companies like Havells, Voltas, Crompton Greaves, and Symphony positioned to benefit from the rising demand for cooling products. Goldman Sachs’ revised targets reflect a positive outlook for these stocks, indicating potential investment opportunities. Investors should consider these updates when evaluating their portfolios and investment strategies in the consumer durables market.
Disclaimer:
The information provided in this article is for informational purposes only and should not be construed as financial advice. Always consult with a qualified financial advisor before making any investment decisions. The article reflects the opinions of the author and does not constitute an endorsement or recommendation of any particular stock or investment strategy. The author and publisher are not responsible for any losses or damages resulting from the use of this information.
