Key Points
It helps that the two consumer durables companies catering mostly to the cables & wires (C&W) segment are set for another strong quarter for the three months ended September (Q2FY24)..
So far in October, copper price is down by 6% versus Q2. Nonetheless, the robust volume performance on the back of solid demand would continue to aid earnings in the second half of FY24..
Delayed festive season (October in 2023 versus September in 2022) has led to lower inventory build-up, impacting primary sales compared to that in last year," said analysts at Nomura in a report on 9 October..
Nuvama Research notes that for consumer electricals other than C&W, there are signs of demand revival over the last few days of September as the festive season approaches..
Our checks, for now, are indicating moderate-to-good demand in Q3FY24 heading into the festive season," said the Nuvama report..
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