Consumer durable companies have seen big gains in the past few months. Renu Baid of IIFL Institutional Equities believes that most of these companies will see growth CAGR of 15-20 percent.
According to Baid, Dixon Technologies should be deliver 38 percent CAGR in the next 5 years. “Dixon is a company where I would highlight in terms of topline growth, they should be able to deliver almost 38 percent CAGR in the next 5 years. This is largely driven by the mobile phone PLI incentive scheme the government has announced,” she said in an interview to CNBC-TV18.
On Havells, she said, “Given where interest rates are today and housing sector is seeing some rebound, I am quite sure that light consumer electricals which get into housing space where Havells portfolio lies, that could see some incremental growth, both in terms of wires, cables, switch gears, as well as their white durables portfolio.”
Baid believes that V-Guard is trading at lower valuations compared to the sector because it has struggled to grow. “The reason why valuations are just at historical average is because the company somewhere has to struggle to deliver on growth. In fact, amidst the entire coverage universe, V-Guard has been the company which has lagged in terms of both, growth performance as well as visibility in terms of strategy,” she said.For full interview, watch video.