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analysts optimistic on consumer durables after budget 2025 announcement
Analysts from CLSA and UBS are optimistic about the consumer durables sector following Budget 2025, which is expected to increase disposable income for mid-income households. Key beneficiaries include Havells, Voltas, Crompton, and TTK, with significant stock rallies observed post-announcement. The budget's increase in the income tax exemption limit to Rs 12 lakh is anticipated to further boost urban demand in discretionary categories.
LG India Achieves Strong Profit Margins Amidst Competitive Consumer Durables Market
LG Electronics has reported a profit margin of 10.42 percent for FY24, outperforming competitors like Samsung India and other household appliance manufacturers such as Voltas and Whirlpool. The company credits its superior margins to high operating efficiency and boasts one of the largest in-house production capacities in the industry.
ubs principal capital divests stakes in multiple indian companies
UBS Principal Capital sold a 1.03% stake in BSE Limited, with notable buyers including Amansa Holdings Private, Think India Opportunities Master Fund LP, and iShares Core MSCI Emerging Markets ETF. In a broader trading session, UBS offloaded shares in several Indian companies, including Alkem Laboratories, Kalyan Jewellers, and Oberoi Realty, while Amansa Holdings acquired 13.94 lakh shares of GMM Pfaudler. Other transactions included sales by Paradise Moon Investment Fund-I and Vikasa India EIF I Fund-Incube Global Opportunities in Mcon Rasayan India Ltd.
Indian equities to gain 2.5 billion dollars in MSCI November rejig
Indian equities are set to receive $2.5 billion in inflows following the MSCI's latest rejig, which will include BSE, Voltas, Alkem Laboratories, Kalyan Jewellers, and Oberoi Realty in the MSCI Global Standard Index. HDFC Bank's weightage will increase, contributing to a total of 156 stocks in the MSCI Standard/EM Index, while the Smallcap Index will see 13 new inclusions, raising its total to 525. India's representation in the MSCI EM Index will rise from 19.3% to approximately 19.8%, marking the highest increase among emerging markets in this rejig.
Voltas reports strong growth and maintains market leadership with buy recommendation
Anand Rathi has maintained a Buy rating on Voltas, setting a target price of Rs 2,018. The company's UCP segment showed robust performance with a 31% year-on-year revenue growth in Q2 and a 56% increase in RAC volume for H1 FY25, securing a 21% market share. Voltas Beko also reported a 54% growth in volumes, enhancing its market presence in refrigerators and washing machines.
The festive spirit is dampened as the Nifty index experiences a significant drop, sliding below 24,350, with the Sensex down 450 points. Despite this decline, smallcaps outperform with a strong advance-decline ratio of 3:1 on the NSE, while FMCG emerges as the top sectoral gainer. In contrast, banks, IT, and pharma sectors face pressure.
Voltas shares drop 6 percent despite strong annual profit growth in Q2
Voltas shares fell over 6% to Rs 1,663 following disappointing sequential Q2 results, despite a 262% year-on-year net profit increase to Rs 134 crore and a 14% revenue rise to Rs 2,619 crore. The annual growth was driven by a 56% surge in unitary cooling products, with the segment's revenue up 30% to Rs 1,582.2 crore.
Indian stock market gains as realty and financial sectors lead the way
The Indian stock market saw gains for the second consecutive session on October 29, with the Nifty closing at 24,466.80, up 127.60 points, driven by strong performances in the realty and financial sectors. Key gainers included SBI, HDFC Life, and ICICI Bank, while Tata Motors and Maruti Suzuki were among the laggards. In corporate news, Marico and Concor reported in-line quarterly results, while Hitachi Energy experienced a significant revenue increase of 25% year-on-year.
Voltas reports over two-fold profit increase driven by strong AC sales
Voltas Ltd reported a consolidated net profit of Rs 132.83 crore for the September quarter, more than doubling from Rs 35.65 crore a year ago. This surge was driven by a 56% increase in volume from its room air conditioning business. Additionally, the company's revenue from operations rose by 14.23% to Rs 2,619.11 crore.
corporate earnings and market trends to watch in the coming week
The Nifty 50 index has declined approximately 7 percent over the past month, driven by foreign portfolio investor selling and lackluster corporate earnings in India. In the upcoming week, shortened by the Diwali festival, key companies such as Bharti Airtel, Maruti Suzuki, and Sun Pharma will report their earnings for the September 2024 quarter.
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