The country’s electrical and consumer durables market has been dominated by South Korean companies such as LG and Samsung for a long time, but now domestic companies have also started doing well. Companies like Havells, Voltas and Amber Enterprises have made good inroads in the market. Therefore, investors can earn good money in the shares of these companies. According to analysts, the consumer durables sector in India is worth Rs 6 lakh crore and is expected to grow at a CAGR of 15 per cent by 2024-25. Global brokerage and research firm Credit Suisse has presented an estimate of profits in the shares of some domestic companies.
Target Price – Rs 1475
Shares of Havells India have registered a good growth in this quarter and so far it has gained 45 percent. Due to the good market share growth in consumer durables along with switchgear and cables, its earnings are expected to grow at a CAGR of 20 per cent. Shares of Havells are currently trading at 1445 but it can increase by 21 percent and it can go up to Rs 1750.
Target Price – Rs 1,150
Credit Suisse has been upgraded to outperform for Voltas. After the decline in the sales of AC at the time of Corona, once again there may be an increase in it. There may be an increase in consumer durables. The refrigerator and washing machine category may see a growth of 3.1 and 2.7 per cent. The business valuation of Voltas is Rs 65 billion. Its share can increase by 15 percent to Rs 1325.
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Target Price – Rs 3,450
Contract manufacturing of 25 percent of the ACs sold in India is done in Amber Enterprises only. It is the major beneficiary company of the government’s AC PLI. Its stock can go up to Rs 4000 in Bull Case Scenario. At present, the share of Amber Enterprises is trading at Rs 3,116.
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)