Household appliances shares rally on higher demand hopes; Blue Star up 15%

The Union Budget 2025-26 has exempted annual income up to Rs 12 lakh from income tax, boosting consumer spending and adding focus on urban consumption.

Shares of household appliances companies surged up to 15 per cent on the BSE in Saturdays’ intra-day on expectations of higher demand after the Union Budget 2025-26 exempted annual income up to Rs 12 lakh from income tax, boosting consumer spending and adding focus on urban consumption.

 

Blue Star Company, Crompton Greaves Consumer Electricals, Voltas, Stove Kraft, Symphony and Havells India rallied between 5 per cent - 15 per cent in intra-day trades. At 03:06 PM; the BSE Consumer Durables index was up 2.7 per cent, as compared to 0.04 per cent rise in the BSE Sensex.

 

The Union Budget proposals have prioritized consumption through personal tax cuts even while staying the fiscal consolidation path. The focus on investment cycle continues but mainly through measures pertaining to ease of doing business and creating conducive environment for private investments rather than budget allocations, said Rahul Singh, CIO – Equities, Tata Asset Management. 

 

 

Among individual stocks, Blue Star soared 15 per cent to Rs 2,087.95 on back of five-fold jump in trading volumes. The company while announcing December 2024 quarter (Q3FY25) results on January 29, 2025 said that the Commercial Air Conditioning business achieved moderate growth driven by demand from the manufacturing, educational, retail, and auditorium sectors. 

 

While the market potential for this business remains promising, the company said it is witnessing liquidity challenges in certain segments, resulting in delays in order finalisations.  The room AC business, driven by a successful festive season, maintained its exceptional growth trajectory during this quarter as well, Blue Star said.

 

During the quarter, the Industrial Solutions business maintained strong momentum and growth, while both the Med-Tech and Data Security businesses experienced subdued performance. The operating cycle in these businesses is yet to revive, which is impacting order inflow, the company said.

 

On the outlook, Blue Star’s management is hopeful that the growth momentum shall continue owing to the key drivers such as the forthcoming summer season, record carried forward order book, a potential revival in government spending, and increased capex from the private sector. 

 

However, challenges such as the depreciation of the Indian Rupee, rising commodity prices, and potential supply chain disruptions may pose obstacles.