Robust demand may sustain growth momentum for consumer durables makers

Margins could come under pressure, given a sharp rise in raw material costs

Stocks of consumer durables makers have been hitting their 52-week highs, given a pick-up in demand and expectations of healthy growth going ahead. Led by gains in the recent months, they have given returns of 39-54 per cent in the past six months when compared with the 32 per cent rise seen in the benchmark Nifty50 index in the same period.

Revenues for the consumer durables companies grew by 7 per cent year-on-year in the July-September quarter, led by a strong demand from Tier-II and -III cities and market share gains from unorganised players. This has continued into the December