BSE consumer durables index hits record high

Shares of consumer durables companies were in focus with the S&P BSE Consumer Durable index hitting record high on Thursday in otherwise subdued market.

At 2:41 pm; S&P BSE Consumer Durable index, the largest gainer among sectoral indices, was up nearly 1% at 13,915 as compared to 0.07% rise in the S&P BSE Sensex. The consumer durable index hit high of 13,958 in intra-day trade, surpassing its previous high of 13,953 touched in March 2, 2017.

Crompton Greaves Consumer Electricals, Titan Company, Blue Star Company, Videocon Industries and Rajesh Exports from the index were up 1% each. Bajaj Electricals, VIP Industries and Future Consumer hit their respective 52-week highs on BSE in intra-day trade.

The consumer durables index has bounced back 33% from its 52-week low. The index hit low of 10,502 on November 15, 2016 on fears of falling demand in wake of the demonetization.

“Though most of the consumer sector results did well against the punctured expectations, the anticipated recovery momentum was definitely impacted due to demonetisation. 4QFY17 will be crucial to assess the actual impact of demonetisation and also to neutralize the impact of ‘creativity’, if any, adopted by distribution channels after demonetization,” according to analysts at Spark Capital.

Bajaj Electricals hits a 52-week high of Rs 287, up 2.5% on BSE.  In past one-month, post October-December (Q3FY71) results, the stock rallied 15% against 2.2% rise in the benchmark index.

Shekhar Bajaj, Chairman and Managing Director, Bajaj Electricals, said “Consumer Products Segment registered a good performance during the quarter, mainly due to effective procurement, better sales realisation, and sales growth in certain product categories, as a result of which the margins have improved by 1.3% from Rs 34.91 crore to Rs 37.74 crore , despite de-growth in sales by 14.5% mainly on account of fall in demand for CFL and demonetisation effect.

Analyst at Emkay Global Financial Services recommends strong BUY as the company is expected to deliver strong earnings growth FY18 onwards.

“We forecast 34% net profit CAGR over FY17-19F, backed by recovery in consumer sales and sustainable project revenue. The overall ROE will improve to 18.4% in FY19 from 13.1% in FY17. BJE is trading at 40-50% disc to its peers due to earnings underperformance in last 2 years,” the brokerage firm said in fund manager meet update.

Company	08/11/2016	15/11/2016	% chg	LTP	% chg*
Future Consumer	21.60	19.25	-10.88	30.80	60.00
Nilkamal Ltd	1550.00	1314.85	-15.17	1935.00	47.17
Titan Company	370.60	328.00	-11.49	444.00	35.37
V I P Inds.	140.25	114.90	-18.07	154.35	34.33
Bajaj Electrical	245.90	215.55	-12.34	283.00	31.29
Crompton Gr. Con	168.30	145.95	-13.28	189.80	30.04
Rajesh Exports	468.25	437.90	-6.48	534.70	22.11
Blue Star	543.55	477.20	-12.21	551.90	15.65
Whirlpool India	1085.95	926.10	-14.72	1052.00	13.59
Symphony	1281.70	1164.05	-9.18	1319.05	13.32
TTK Prestige	5942.90	5310.00	-10.65	5800.00	9.23
PC Jeweller	480.55	354.80	-26.17	376.80	6.20
Videocon Inds.	103.80	103.30	-0.48	103.65	0.34
Consumer Durable index	12477.57	11048.46	-11.45	13915.00	25.9
Sensex	27591.14	26304.63	-4.66	28922.00	10.0
LTP : Last traded price on BSE in Rs at 02:41 pm
*Change over November 15, 2016