Consumer Durables Stocks: Commodity prices are constantly increasing. The prices of some commodities have gone up by 30 to 60 per cent on an annual basis. At the same time, on a monthly basis, it has increased by 5 to 15 percent. Along with this, commodity prices are on high for several months. In such a situation, the input cast of consumer durables sector companies has increased. Due to this, many companies can pass on the pressure of increasing costs to the customers. In the coming days, she can increase the price of her product. Although demand has already improved, the margins of companies remain under pressure. Summer has come, in such a situation, the purchase of strong, especially cooling products can be accelerated. According to a report by brokerage house Motilal Oswal, even after some challenges, some stocks related to this sector can perform well.
Commodity prices rose by 60%
According to the report, commodity prices have gone up by 30-60% on an annual basis and by 5-15% on a monthly basis. Plastic prices have also increased drastically. In such a situation, many companies had increased the rate of their product by 4-8 per cent in the first week of January. At the same time in April, these companies can again increase the price of the product.
Shopping can be faster
According to the brokerage house report, before the start of April, once again the purchase of especially cooling products can be accelerated. Footfall is expected to increase in the coming days, which is still not normal in mall-based stores. At the same time, companies can make their products expensive by the end of March or early April. If the price hike occurs and the summer shopping picks up, the margins of the companies that make the cooling products will improve. Let us know that since the lockdown, there has been pressure on the margins of all the companies in the consumer durable sector.
Supply Chain Network Normal
According to the brokerage house, now the challenges related to supply are also gradually getting normalized, which had a big impact on the lockdown. However, this problem remains in the unorganized sector. In such a situation, companies working in the organized sector will benefit. There is no particular concern about the inventory level.
Make money in these stocks, who should stay away
Brokerage House Motilal Oswal Whirlpool Recommending a purchase in Rs, has set a target of Rs 3020. There itself Orient Electric While giving a target of Rs 350, it is advised to invest. Crompton Greaves Also, the brokerage has suggested buying, giving a target of Rs 485. There itself Howells But the brokerage has given a neutral rating and has given a target of 1100 rupees for this.
Voltas Also, the rating of brokerage is neutral and its target is Rs 1170. blue Star The brokerage has given a target of Rs 740, suggesting a sell-off.
(Note: We have given advice here based on the report of the brokerage house. The market carries its own risks, so take the opinion of experts before investing.)