Havells or Polycab: Which one to choose?

Demand conditions for the electrical and the consumer durable sectors continue to remain challenging owing to Covid disruptions.

Sachin Pal
July 26, 2021 / 11:42 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

The June-quarter earnings of consumer durables manufacturers reflected diverging growth trajectories. On a sequential basis, Havells India had an impressive quarter, which contrasts remarkably with Polycab’s weaker across-the-board earnings. Polycab India result snapshot In Q1, Polycab reported a healthy year-on-year (YoY) recovery owing to a low base. However, sales plunged 38 per cent sequentially (quarter-on-quarter) due to stringent lockdowns in its key operating markets — west and south. Moreover, profitability and margins were severely impacted by raw material inflation and adverse operating...