BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Institutional Equities
Our appliances coverage universe is expected to deliver revenue YoY/three-year compound annual growth rate (excluding Butterfly Gandhimati Appliances Ltd. acquisition) of 13/16% in Q3 FY23 (versus 7/11% in Q3 FY22 and 6/12% in Q2 FY23).
Q2 FY23 was marred by a variety of reasons like commodity-led destocking, an unfavorable base, negative oplev and slow infra activities led by extended monsoon.
We have observed that some of the headwinds have eased out in Q3 and thereby expect better delivery in Q3 after the washout show in Q2. Some business-to-consumer categories (especially white goods) have witnessed tepid demand after the festive season.
However, fans have benefited by rating change-led pre-buying. Channel partners have stocked up the non-rated fans in Q3 as manufacturers will not be able to sell after Jan 01, 2023 onwards. Hence, primary sales are expected to be strong for Q3 for fans.
We do not change our H2 FY23 numbers considering end-consumer demand will not alter due to pre-buying. However, our checks are suggesting that the price difference between non-rated and rated fans can be ~10-15% which may increase our fan revenue growth assumptions for FY24 (we await more clarity). Besides, B2B/B2G demand is sustaining a healthy trend.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.