Consumer durables stocks in demand
- In its Q3 results, Havells reported revenue growth of 46% YoY in electrical consumer durables. Further, its subsidiary Lloyd, which primarily makes AC and fridges, posted revenue growth of 70% YoY. Havells was able to gain share from the unorganised sector and also benefited from import prohibitions.
- The strong growth rates reported by Havells triggered buying in shares of peers such as Vguard (+9.2%) Crompton Greaves (+7.9%), Whirlpool (+6.0%), Polycab (+6.1%) and Voltas (+5.0%).
Kajaria Ceramics gains on demand from smaller cities
- The rise in demand for tiles from smaller cities helped Kajaria Ceramics to post a 11% YoY growth in sales volumes. Even revenues from operations clocked a 13% YoY rise to ₹838 crore.
- Tighter cost controls helped boost margins and led to a 93% YoY rise in net profit to ₹118 crore. The stock gained 1.2% today, along with shares of other ceramic makers, such as HSIL (+6.3%), Somany Ceramics (+5.0%) and Cera Sanitaryware (+1.6%).
Decorative paints boost profits for Asian Paints
- Q3 profits for the country’s largest paint maker shot up 62% YoY to ₹1,265 crore for Q3, much higher than street estimates of ₹971 crore. Further, the company’s revenues grew 25% to ₹6,788 crore. It witnessed a strong demand recovery across business segments.
- Shares of Asian Paints rose 1.5% today, as did shares of decorative paint makers such as Berger Paints (+1.6%) and Kansai Nerolac (+3.1%). Akzo Nobel (known for the Dulux brand) was an exception as it fell 1.2%.The decorative paints segment is gaining attention due to a positive response for the Indigo Paints IPO. Click here to apply.
Bajaj Auto scoots ahead on record revenues
- Shares of Bajaj Auto surged as high as 4.5% intraday as it reported its highest-ever revenues and profits. Its revenues from operations grew 17% YoY to ₹8,909 crore and consolidated net profit jumped 30% YoY to ₹1,716 crore.
- The strong performance was driven by high operating leverage and a better product mix. The stock witnessed some profit booking in line with the fall in the broader market and ended the day with gains of 1.6%.