As the financial year 2025 nears its conclusion, investors and industry stakeholders are keenly awaiting the Q4 results of key players in the Wire and Cable sector. Nuvama's latest brokerage report sheds light on expected trends and sectoral performance, highlighting key growth drivers and challenges.
Nuvama's Q4FY25 Preview: Consumer Durables, Electricals & EMS Sector Outlook
The Indian Consumer Durables, Electricals, and Electronics Manufacturing Services (EMS) sectors are set for another strong quarter, according to Nuvama's latest brokerage report. As the financial year 2025 draws to a close, the firm has shared an optimistic outlook, projecting steady growth across various segments.
Key Takeaways from Nuvama’s Q4FY25 Preview
1.Growth Projections
Revenue, EBITDA, and PAT are expected to grow at 16%, 14%, and 11% YoY, respectively.
The electricals and durables sector is anticipated to sustain its strong performance due to increasing demand and price inflation.
2.Segment-wise Performance Expectations
Cables & Wires (C&W) Segment: Robust growth is forecasted, supported by strong volume expansion and higher pricing due to input cost inflation.
Cooling Products: Anticipated to witness over 20% YoY growth, driven by rising summer demand and increased channel stocking.
Home Appliances & Kitchen Appliances: Excluding fans, these segments are expected to face a challenging demand environment due to sluggish consumer sentiment.
3.Margins & Stock Picks
Margins are expected to remain steady on a YoY basis, indicating stable profitability.
Top Picks: Nuvama recommends Havells, Crompton, KEI, and Polycab as the best stocks in this sector.
4.Industry Implications & Market Sentiment
The projected growth in cooling products and cables suggests a seasonal boost and infrastructure-driven demand, which may continue in the upcoming quarters. However, the pressure on home and kitchen appliances indicates a cautious consumer spending trend, warranting close monitoring by investors.
With a positive outlook in key segments and stable margins, the Consumer Durables and Electricals sector remains a promising investment avenue. Investors should keep an eye on Nuvama’s recommended stocks and broader market trends for further insights.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Readers are advised to conduct their research or consult a financial advisor before making any investment decisions.
