Voltas, Blue Star rally up to 3% amid LG Electronics IPO frenzy; what next?

At 10:06 AM on Friday; the BSE Consumer Durable index was up 0.71 per cent, as compared to the 0.30 per cent rise in the BSE Sensex.

Share price of consumer durables companies today

 

Shares of consumer durables companies like PG Electroplast, Voltas, Blue Star, Whirlpool of India and Crompton Greaves Consumer Electricals were trading higher up to 3 per cent on the BSE in Friday’s intra-day trade on expectations of demand reviving during the festive season.

 

At 10:06 AM; the BSE Consumer Durable index was up 0.71 per cent, as compared to the 0.30 per cent rise in the BSE Sensex.

What's driving consumer durables stock?

 

LG Electronics India's ₹11,607 crore initial public offering (IPO) drew a record ₹4.4 trillion, the highest for a domestic listing. LG’s share sale saw 54 times more demand than shares on offer, with the quota meant for institutional investors garnering 166 times subscription. The retail and high networth individual (HNI) portion were subscribed 3.6 times and 22.4 times, respectively. The IPO saw over 6.5 million applications.  ALSO READ | How to check LG Electronics IPO allotment status 

 

LG Electronics India is a wholly-owned subsidiary of LG electronics Inc. which is a leading single-brand global home appliance player. LG is the market leader in India across multiple product categories including washing machines (33.5 per cent), refrigerators (29.9 per cent), panel televisions (27.5 per cent), inverter air conditioners (20.6 per cent), and convection microwaves (51.4 per cent) as on H1CY25.

 

Meanwhile, following an exceptional year of growth, FY26 started on a softer note, driven primarily by unseasonal rains across the country, which resulted in a muted demand primarily for Room Air Conditioning (RAC) segment. Despite this headwind faced by Room AC business, Blue Star company has delivered robust revenue growth across other key businesses. Backed by a healthy order book and prospects of demand reviving during festive season, the management of the company is optimistic about the growth for the full year.  ALSO READ | NTPC Green rises 3% on signing MoU with Gujarat government for Solar Parks 

According to analysts at JM Financial Institutional Securities, air conditioner (AC) sales across West and South India remain weak, even post GST cuts into the festive season, and channel inventory currently hovers around 5 months vs. 2.5-3 months normally; Besides ACs, mobiles and larger TVs (saw GST cuts) are seeing demand pickup, while other products including washing machines, refrigerators and smaller TVs, are seeing low double-digit growth, from replacement purchases; and growth in modern retail channels is outpacing the overall industry and a plethora of financing options have played a key role here.

 

Whirlpool’s overall market share in washing machines has been maintained, while it has gone up a little in refrigerators. Voltas Beko has also gained some share across washing machines and refrigerators. Going forward, with festivities kicking off, the next 15 days remain crucial. Both washing machines and refrigerators are also seeing premiumisation play out, the brokerage firm said in its sector report

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