Voltas, Blue Star, Havells, others: Strong summer season sales set to drive Q1 show with AC segment outperforming

Stock Market Today: Voltas, Blue Star, Havells, Crompton Greaves Consumer Electricals, V-Guard Industries share prices have risen up to 97% year to date. The strong traction in sales during the April - June' 2024 quarter driven by favorable summer season are likely to have supported gains for Voltas, Blue Star, Havells, Crompton Greaves Consumer Electricals, V-Guard Industries share prices.

The sales for cooling products as Air conditioners, Coolers are likely to have grown at a higher pace while other electrical consumer durables sales are estimated to have grown reasonably well during the quarter

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Air Conditioner sales to outperform

As per analysts as Praveen Sahay at Prabhudas Lilladher, it has been a strong quarter for Air Conditioner sales . The segment reported is likely to have clocked 30% YoY growth during the quarter on account of the harsh summer. Surge in secondary demand during 1QFY25 is likely to have led to sharp reduction in Channel inventories. Sahay estimates Voltas’ Unitary Cooling Products segment and Lloyd sales growth of 19% and 37.5% YoY in Q1FY25 with improvement in margins.

Analysts at Centrum Stock Broking for their Consumer Durables coverage companies, expect revenue growth of 28% year- on year with key outperformers being Johnson Controls-Hitachi Air Conditioning India Ltd ( up 48%), Voltas ( up 34%) and Blue Star ( up 30%) led by robust Room Air Conditioner sales. Even Earnings before interest Tax depreciation and amortisation of Centrum's coverage universe is likely to rise 200bps year-on-year to to 6.9%,Centrum expects net profit to double led by earnings growth by Voltas, Blue Star

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Electrical Consumer Durables sales to see some benefits too - Fan segment though benefitted however the the demand has transitioned from fans to , coolers. point out analysts. the companies though may benefit from announced price hike in the fan segment.

The wires segment is likely to have seen steady growth estimated at 12-14.5% for KEI Industries, Polycab India and RR Kabel

For the Consumer Electricals coverage companies, Centrum analysts expect revenue growth of 16% YoY with key outperformers being Polycab and Havells. They expect net profit growth of 21% led by Havells and V-Guard industries.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions