CLSA, UBS upbeat on Consumer Durables stocks post-Budget 2025; details here

CLSA, UBS on Consumer Durables stocks after Budget 2025: Analysts are positive on the consumer durables sector following Finance Minister Nirmala Sitharaman's Budget 2025 speech on February 1, 2025. 

 

According to CLSA analysts, the preliminary impression of the budget suggests higher discretionary cash flows for mid-income households, which should drive increased durable consumption.

 

Indrajit Agarwal, senior research analyst at CLSA, said, “We expect higher durable consumption, which in turn should benefit Havells, Voltas, Crompton, and TTK in our coverage.”

 

Havells rallied as much as 6.53 per cent to hit an intraday high of Rs 1,669 per share, while Voltas zoomed 5.55 per cent to hit an intraday high of Rs 1,331. Crompton jumped 7.42 per cent to hit an intraday high of Rs 368.40 per share, while TTK also soared about 2 per cent.

 

UBS analysts, too, noted that the rise in disposable income would boost urban demand, particularly in discretionary categories such as home improvement, retail, apparel, QSRs, packaged foods, beauty, and personal care. 

 

Ashutosh Joytiraditya, analyst at UBS, said, “More positive for discretionary segments such as home improvement, retail, apparel, QSRs, packaged foods, beauty and personal care.”

 

Also Read: Budget 2025: Leather, footwear stocks zoom on FM Sitharaman's new policy

 

Among the key highlights of Budget 2025 was the government's decision to raise the income tax exemption limit to Rs 12 lakh per annum under the New Tax Regime. This means individuals with income of up to Rs 12 lakh will no longer need to pay any tax, a major shift from the previous threshold of Rs 7 lakh.

 

As per the new tax slabs, people with taxable income of Rs 12 lakh, Rs 18 lakh, and Rs 25 lakh would enjoy annual tax savings of Rs 80,000, Rs 70,000, and Rs 1,10,000, respectively. 

 

The change, analysts believe, is expected to benefit mid-income households by providing them with additional disposable income.

 

Following the budget announcement, the BSE FMCG index saw a sharp rally, climbing as much as 4.24 per cent to hit an intraday high of 21,428.35. Among the top gainers were Godfrey Phillips (up 11.5 per cent), Prataap Snacks (up 11.3 per cent), and Radico Khaitan (up 7 per cent). 

 

At 2:47 PM, half of the 30 stocks in the BSE FMCG index were in the green zone, while the other half were in the red.