Consumer Electricals

SECTOR UPDATE
Focus on costs; all eyes on demand revival

20 August 2020 BSE Sensex: 38615

Q1FY21 has expectedly been a weak quarter for consumer electrical companies amid COVID-19 led
lockdown impacting revenues and profitability. However scale-up in revenues has been faster than
anticipated with companies seeing revenues touching ~90% yoy in June/July. While uncertainty
continues to prevail with increasing local lockdowns, mgmts. are seeing broad-based demand recovery
and continue to work on optimizing costs and product innovation towards wellness products.
Concurrently, retail demand for relatively less discretionary products (fans, lighting, switches, etc.) will
see quicker recovery in near term; while discretionary items (RAC, coolers, etc.), real estate related
products (switchgears, cables, etc) and products with higher B2B/B2G (lighting, cables) likely to see
gradual rebound. Atmanirbhar Bharat and focus on reducing import dependence on China is gaining
traction with government planning to increase import duties and incentivize local production. We believe
these initiatives will increase the local value addition over the next few years. Overall, we continue to like
the structural story of low penetration, improved power availability and increasing premiumization with
deepening of reach. Crompton remains our top pick (cost leadership, strong BS, attractive valuations).
Recovery led by smaller towns; urban doing catch-up: COVID-19 led lockdown impacting demand does
not come as a surprise as stores remained closed and supply chain disrupted (restoration was also slow).
Green and orange zones, particularly the smaller towns and rural areas which were least affected by COVID
and opened up faster, led the demand during the quarter. Demand in Tier-1 cities was impacted sharply as
they were among slowest to open-up; however has been improving month on month. Mgmt commentary
across companies suggests healthy demand pickup from June (as secondary sales picked up leading to
reduction in inventory levels) and July creeping nearer to pre-COVID levels. However increasing local
lockdowns pose challenges impacting revenues. We note, all companies have seen a surge in their e-comm
sales (400% growth for Crompton), and have been increasing focus towards this channel.
Focus on cost optimisation: Companies focussed on cost rationalization - reducing payroll costs, lower ad
(90-95% cut) and other spends to ensure limited impact on operating margins. Most companies surprised
positively on the cost front, demonstrating better cost mgmt. However, only a part of these savings to be
sustainable as expenses like travel/A&P would come back once things normalise. We note Crompton has
highlighted Rs1-1.5bn saving led by cost initiatives in addition to savings from COVID related measures.
Unorganized players losing share: Voltas, Havells, Polycab, saw increase in market share despite lockdown
as supply chain disruption impacted ability of unorganized players. We note, that RAC segment is seeing
pricing pressure amid anticipation of slow pickup in demand and aggressive pricing by dealers to free up
their working capital by liquidating inventory before the peak season (typically till May/June).
Inventory levels to normalize in Q2; B/S no concern: Low off take of dealer inventory led to weak primary
sales during the quarter. Inventory levels were particularly high in the RAC space where in anticipation of
China supply chain disruption and onset of peak season, manufacturers and dealers built up their
inventory. However, with demand picking up and inventory levels have normalized in most cases while for
segments like RAC, the inventory levels are likely to normalise by 3Q21. Most companies in the space have
seen an improvement in cash on books with limited debt. However, with demand outlook bleak, most
companies are looking to limit capex and conserve cash. We note, while liquidity and cash levels are high,
companies like Blue Star, Havells and Crompton have issued CPs/NCDs/bank credit, to avoid unforeseen
liquidity constraints.
Comparative valuations – FY22E
Price Mkt Cap EPS EPS P/E EV/EBITDA ROE ROCE
Company Rating
(Rs) (Rs bn) (Rs) growth (%) (x) (x) (%) (%)
Havells OP 629 3,93,343 13.2 48.8 47.8 31.3 17.3 19.2
CGCEL OP 261 1,63,309 8.1 24.8 32.2 23.0 27.8 28.5
Voltas OP 650 2,14,926 19.6 81.1 33.1 28.9 14.7 13.1
Bluestar N 549 52,713 18.5 118.1 29.6 15.0 21.8 26.2
Dixon OP 7,985 89,076 157.8 72.5 50.6 27.4 22.4 33.9
Amber OP 1,840 57,874 48.7 636.2 37.8 16.9 12.1 13.9
Source: Company, IDFC Securities Research

Bhoomika Nair Romil Mehta

bhoomika.nair@idfc.com romil.mehta@idfc.com
91-22-4202 2561 91-22-4202 2649

For Private Circulation only. “Important disclosures appear at the back of this report”
 Consumer Electricals

ECD Segment: Home appliances saw traction

Revenue across companies were impacted: with a 45-50% drop due to COVID-19 led lockdown. This
resulted in negative operating leverage impacting margins. Most companies offset the same via cut in
ad-spends (90-95% cut), fixed costs, employee costs, etc. Both Havells and Crompton saw market share
gains led by sustained focus on reach, brand, products, etc.
• Crompton: saw 44% decline in Q1FY21 in the ECD segment as business got severely impacted in Apr-
20 but picked up from May. We note Crompton had the stickiest gross margins vs peers indication
limited impact of down trading or negative operating leverage. EBIT margins surprised remaining
largely stable yoy led by cost cutting initiatives. June-20 trends – Fans at 85% levels, while pumps
saw 25% yoy growth. 42% volume growth in geysers and 124% growth in mixer grinders. In fans, over
last 12 months gained 1pp market share. Not witnessed any down-trading in product portfolio.
• Havells – 46% yoy drop in revenues witnessed during the quarter while EBIT margins contracted
sharply from 14.3% in Q1FY20 to 12.2% in Q1FY21. Company saw demand slightly coming off from
July, particularly in the consumer portfolio amid increasing local lockdowns. Lloyd’s plant capable for
manufacturing of LED panel and Washing machines.
• Orient Electric – saw the sharpest decline of 76% yoy in revenues for the quarter (higher inventory
with channel partners). EBIT margins shrinked from 10.1% to -6.8% leading to EBIT loss of Rs71mn.
• Bajaj Electricals - Revenues declined 49.7% yoy to Rs3.94bn as lockdown impacted sales in April and
May. (June saw 4% yoy growth). Appliances -53%, fans -50%, Morphy Richards -51% yoy. Segment
EBIT margins contracted from 7% to 2.7%
Outlook: While overall quarter’s performance has been weak, most companies saw healthy demand
improvement in the month of June and July (albeit being lower yoy) largely from smaller towns, with
resilience in B2C segment with B2B remaining sluggish. Companies, while hopeful of positive demand
trajectory, restrained from giving guidance on demand considering the local lockdowns. Further all
companies are looking at E-commerce as a critical platform to increase sales and gain share. Companies
continue to focus on costs and improving working capital. Concurrently, most players are focussing on
sustained innovation and products to focus on technology and wellness in the current environment.

Exhibit 1: Employee and other costs cut by all companies (ad spends also sharply lower yoy)
Employee Costs (Rs mn) 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 % yoy % qoq
Havells 2,413 2,395 2,195 1,989 1,765 -27% -11%
Voltas 1,632 1,576 1,734 1,776 1,574 -4% -11%
Crompton 820 810 774 706 720 -12% 2%
Bluestar 1,147 1,195 1,260 1,243 699 -39% -44%
Bajaj Electricals 924 1,011 952 947 954 3% 1%
Orient electric 487 492 510 496 426 -12% -14%
Polycab 909 916 906 886 795 -13% -10%
Vguard 602 450 584 432 546 -9% 27%

Other Costs (Rs mn)

Havells 4,962 3,988 4,096 3,573 2,057 -59% -42%
Voltas 2,194 1,404 1,561 2,288 1,646 -25% -28%
Crompton 1,655 1,326 1,281 1,129 611 -63% -46%
Bluestar 1,615 1,223 1,222 1,688 757 -53% -55%
Bajaj Electricals 1,893 1,731 2,071 1,753 958 -49% -45%
Orient electric 938 778 861 572 279 -70% -51%
Polycab 2,059 2,288 2,547 2,566 1,280 -38% -50%
Vguard 963 866 902 906 549 -43% -39%
Source: Company, IDFC Securities Research

2 | IDFC SECURITIES 20 August 2020

 Consumer Electricals

Exhibit 2: Gross margins deteriorate yoy for companies – Voltas, Crompton and Bajaj Elec see improvement
Gross margins (%) 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 chg yoy chg qoq
Havells 37.4 39.1 39.6 36.2 34.7 -267 bps -148 bps
Voltas 25.2 28.1 28.3 28.3 28.5 +335 bps +28 bps
Crompton 32.6 31.9 32.0 31.6 32.5 -9 bps +92 bps
Bluestar 24.8 25.2 24.7 25.4 23.5 -134 bps -196 bps
Bajaj Electricals 27.2 25.9 28.5 22.9 27.6 +37 bps +464 bps
Orient electric 32.8 34.2 36.8 30.5 28.7 -418 bps -187 bps
Polycab 26.7 26.2 27.1 30.3 26.5 -14 bps -373 bps
Vguard 32.6 33.8 33.2 33.3 29.2 -334 bps -412 bps
Source: Company, IDFC Securities Research

Exhibit 3: ECD – revenues and margins declined across companies

Revenues (Rs m) 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 FY18 FY19 FY20
Havells 4,805 5,785 5,331 5,616 5,506 5,814 4,177 3,017 15,602 20,964 21,113
Crompton 7,128 7,116 8,644 10,729 7,881 7,870 7,411 5,965 28,281 32,136 33,890
Bajaj Electricals 6,423 7,606 7,410 7,834 6,977 8,579 7,457 3,944 22,285 27,408 30,846
Orient 2,435 2,847 4,758 4,291 2,832 3,248 4,545 1,035 12,181 13,319 14,916
V-Guard 1,821 1,838 1,790 1,534 1,750 2,020 1,441 855 5,750 6,779 6,745
Polycab 829 647 1,955 963 1,289 1,156 1,284 433 3,796 4,693
Revenue (% yoy growth)
Havells 49.4 39.1 14.7 11.4 14.6 0.5 (21.7) (46.3) 13.2 34.4 0.7
Crompton 14.6 16.3 9.6 16.0 10.6 10.6 (14.3) (44.4) (2.0) 13.6 5.5
Bajaj Electricals 24.9 26.7 15.0 31.2 8.6 12.8 0.6 (49.7) (3.7) 23.0 12.5
Orient 7.8 17.8 (4.0) 30.8 16.3 14.1 (4.5) (75.9) 9.3 12.0
V-Guard 11.7 22.5 14.5 15.3 (3.9) 9.9 (19.5) (44.3) 14.4 17.9 (0.5)
Polycab 159.8 164.5 55.5 78.6 (34.3) (55.0) 23.6
EBIT (Rs m)
Havells* 1,287 1,445 1,372 823 1,383 1,496 560 370 4,201 5,526 4,262
Crompton 1,348 1,327 1,685 2,173 1,514 1,561 1,482 1,223 5,347 6,162 6,731
Bajaj Electricals 369 552 460 545 355 707 476 105 1,087 1,801 2,082
Orient 248 300 648 435 264 402 716 -71 1,475 1,508 1,818
V-Guard 115 48 118 66 185 113 35 -87 207 319 399
Polycab 26 17 133 91 176 235 219 67 167 722
OPM (%)
Havells* 26.8 25.0 25.7 14.7 25.1 25.7 13.4 12.3 26.9 26.4 20.2
Crompton 18.9 18.7 19.5 20.3 19.2 19.8 20.0 20.5 18.9 19.2 19.9
Bajaj Electricals 5.7 7.3 6.2 7.0 5.1 8.2 6.4 2.7 4.9 6.6 6.8
Orient 10.2 10.5 13.6 10.1 9.3 12.4 15.8 -6.8 12.1 11.3 12.2
V-Guard 6.3 2.6 6.6 4.3 10.6 5.6 2.5 -10.2 3.6 4.7 5.9
Polycab 3.1 2.7 6.8 9.4 13.7 20.3 17.1 15.4 4.4 15.4
Source: Company, IDFC Securities Research *Havells has shifted from Contribution to EBIT reporting from Q1FY21;
accordingly Q1FY20, Q4FY20 and Q1FY21 not comparable to previous years

3 | IDFC SECURITIES 20 August 2020

 Consumer Electricals

Lighting – Price hikes come in albeit late

• Revenues saw a decline (45-55%) owing to drop in institutional demand cushioned partly by retail
demand from lower Tier towns. Demand dropped sharply for the B2B/B2G (EESL) segment as
project sites remained closed and real estate construction was impacted. B2C LED lighting saw
healthy pickup, with Crompton seeing yoy growth in Jun-20.
• Margins demonstrated a mixed bag (price hikes announced in March, got effective only from May
once sales resumed:
o Crompton saw 100bps expansion in EBIT margins led by higher B2C sales, price hike benefits,
better product mix in EESL orders (higher street light bulbs) and cost reduction programmes.
o Havells and Orient electric saw their EBIT margins contract sharply. Havells EBIT margins
shrinked from 14.2% in Q1FY20 to 2.1% in Q1FY21 while Orient Electric saw a comparatively softer
decline from 10% to 6.4% largely on negative operating leverage.
• Margins continue to be under stress over the past few quarters on back of price erosion which was
further amplified by demand decline. Companies however are witnessing recovery in demand,
particularly from Jun-20. Further, price hikes in LED bulbs and cost initiatives taken amid the
ongoing pandemic should bode well over the longer term to drive margins.

Exhibit 4: Revenue declines in the range of 45-55%; Negative op leverage dents in margins (except CGCEL)
Revenues (Rs m) 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 FY18 FY19 FY20
Havells 2,856 3,695 3,800 2,504 2,808 3,046 2,343 1,380 11,563 12,934 10,701
Crompton 3,250 3,188 3,425 2,739 2,877 2,843 2,770 1,236 12,770 12,653 11,229
Orient 1,296 1,358 1,619 1,392 1,514 1,709 1,086 753 4,074 5,348 5,702
Revenue (% yoy growth)
Havells (0.4) 28.7 17.7 (3.1) (1.7) (17.6) (38.3) (44.9) 19.1 11.9 (17.3)
Crompton (3.8) (2.4) 1.4 (1.8) (11.5) (10.8) (19.1) (54.9) 13.1 (0.9) (11.3)
Orient 29.6 29.6 26.9 29.5 16.9 25.9 (32.9) (45.9) 31.3 6.6
EBIT (Rs m)
Havells 847 1,089 1,047 357 775 894 329 29 3,356 3,694 2,355
Crompton 206 282 393 141 151 196 193 75 1,473 1,069 680
Orient 84 145 245 139 109 226 123 48 345 588 597
OPM (%)
Havells 29.6 29.5 27.6 14.2 27.6 29.4 14.0 2.1 29.0 28.6 22.0
Crompton 6.3 8.9 11.5 5.1 5.2 6.9 7.0 6.1 11.5 8.4 6.1
Orient 6.5 10.7 15.1 10.0 7.2 13.2 11.3 6.4 8.5 11.0 10.5
Source: Company, IDFC Securities Research

4 | IDFC SECURITIES 20 August 2020

 Consumer Electricals

Room Air Conditioners (RAC) – summer season miss

• UCPL (particularly RAC and coolers) revenues declined across all players as sales during the quarter
were hit due to COVID-19 led lockdowns and loss of sales in peak summer season. AC players saw
sharp decline in revenues in the range of 50-75% (Lloyd reporting lowest decline on low base and
Symphony being most affected). On the other hand, Voltas saw a decline of 60% as it expanded its
market share to 26% (+200bps yoy). Amber Enterprises saw 79% drop in revenues as orders were
impacted by high inventory at channel as well as brand level.
• The supply side concerns from China prompted players to stock-up inventory, ahead of the peak
sales season. However, lockdown stalled demand, with most players and dealers left with high
inventory. To liquidate inventory and anticipating weak demand to persist, players resorted to higher
discounts which impact realisations. As per companies, there is a 45-60 day inventory (typically 30
days) with dealers, while players too have inventory (Voltas at 140 days incl RM).
• On margins, all players (except Voltas) saw sharp decline in profitability and reported negative EBIT
margins for the quarter. Impact on margins is attributable to negative operating leverage, higher
customs duty, and higher detention/demurrage charges, etc. which were partially offset by initiatives
on cost rationalization. However, Voltas saw sharp in increase in margins (better product mix, sharply
lower ad spends and lower impact of negative operating leverage).
• Various schemes/ plans under discussion to augment higher value addition in India. PMP, SPECS, PLI
are among key initiatives to encourage local mfg. There is also likelihood of hike in import duties in a
phased manner over the next five years on both CBU imports as also components. We believe
government thrust should augur well for the Indian AC manufacturing industry and would also
developing the component ecosystem. We note, global AC compressor manufacturers already
have/setting up plants in India.

Exhibit 5: Summer season sales largely lost due to lockdowns – Voltas sees sharp margin expansion
Revenues (Rs m) 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 FY18 FY19 FY20
Voltas (UCPL) 4,410 5,259 9,976 17,488 5,256 6,005 11,989 7,071 32,261 32,906 40,737
Bluestar (UCPL) 3,431 3,915 7,036 9,069 3,772 4,202 5,963 2,749 20,887 22,690 23,006
Hitachi 3,469 4,349 6,655 9,519 3,766 4,360 4,329 2,696 21,854 22,413 21,974
Lloyd 2,579 3,572 5,324 6,520 1,800 3,004 4,579 3,062 14,141 18,556 15,903
Symphony 1,480 1,590 1,380 1,600 1,950 2,070 1,540 400 6,870 5,240 7,160
Amber 3,298 5,181 11,960 12,359 6,232 7,884 13,152 2,595 21,281 27,520 39,628
Revenue (% yoy growth)
Voltas (cooling) 8.2 (3.0) (6.3) 46.8 19.2 14.2 20.2 (59.6) 5.9 2.0 23.8
Bluestar (cooling) 8.9 22.0 19.0 9.2 10.0 7.3 (15.3) (69.7) 4.6 8.6 1.4
Hitachi 9.3 15.2 6.0 19.9 8.6 0.2 (34.9) (71.7) 12.5 2.6 (2.0)
Lloyd (4.4) 21.9 (8.9) (7.9) (30.2) (15.9) (14.0) (53.0) 31.2 (14.3)
Symphony (19.7) (26.9) (11.2) 102.5 31.8 30.2 11.6 (75.0) 7.7 (23.7) 36.6
Amber 74.5 89.0 52.2 10.0 (79.0) 28.8 29.3 44.0
EBITDA (Rs m)
Voltas (cooling EBIT) 278 447 1,037 2,298 463 607 1,754 1,096 4,749 3,620 5,121
Bluestar (cooling EBIT) 82 94 733 989 120 77 438 -38 1,681 1,859 1,623
Hitachi 52 -30 773 1,107 20 324 272 -221 1,989 1,638 1,722
Lloyd 84 61 182 90 -396 -60 1 -30 1,126 986 -366
Symphony 430 430 290 380 630 680 430 -50 2,170 1,320 2,120
Amber 136 290 1,131 1,164 367 543 1,019 -55 1,835 2,129 3,093
OPM (%)
Voltas (cooling EBIT) 6.3 8.5 10.4 13.1 8.8 10.1 14.6 15.5 14.7 11.0 12.6
Bluestar (cooling EBIT) 2.4 2.4 10.4 10.9 3.2 1.8 7.3 (1.4) 8.0 8.2 7.1
Hitachi 1.5 (0.7) 11.6 11.6 0.5 7.4 6.3 (8.2) 9.1 7.3 7.8
Lloyd 3.3 1.7 3.4 1.4 (22.0) (2.0) - (1.0) 8.0 5.3 (2.3)
Symphony 29.1 27.0 21.0 23.8 32.3 32.9 27.9 (12.5) 31.6 25.2 29.6
Amber 4.1 5.6 9.5 9.4 5.9 6.9 7.7 (2.1) 8.6 7.7 7.8
Source: Company, IDFC Securities Research; *Lloyd EBITDA estimated in FY20

5 | IDFC SECURITIES 20 August 2020

 Consumer Electricals

Cables – Drop in demand impacts revenues and profitability

• Revenues declined across most players due to weak real estate sector and slow project execution

o Polycab’s wires & cables segment saw 50% decline yoy; Havells saw a decline of 41% yoy while
Finolex Cables reported 53% decline in revenues amid weak macros. Companies saw share of
unorganized players in the market reducing.
o KEI’s revenue decline was contained at 24% yoy. While domestic retail business declined 50%
yoy, institutional sales fell only 6% (as exports grew 70% yoy to Rs1.6bn).

• Margin trends is broadly similar across companies (except KEI) with lower revenues impacting
profitability. Polycab saw sharpest decline in margins (from 11.4% to 3.1%), also attributable to NIL
revenues from Dangote. Strong exports growth led to better EBIT margins at KEI.

Exhibit 6: Cables saw revenue decline on back of lockdown and weak demand
Revenue 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 FY18 FY19 FY20
Finolex 7,140 7,496 8,231 8,077 7,158 7,024 6,514 3,771 28,289 30,778 28,773
KEI 8,088 8,782 9,748 8,549 9,948 10,995 10,332 6,462 27,265 33,596 39,824
Havells 7,665 8,203 8,979 7,785 8,213 7,121 6,283 4,611 26,001 32,346 29,402
Polycab 16,094 18,093 21,221 16,381 19,220 21,692 18,605 8,252 56,079 70,648 75,898
Revenue (% yoy growth)
Finolex 2.0 14.0 3.0 2.0 - (6.0) (21.0) (53.0) 16.0 9.0 (7.0)
KEI 36.0 25.0 20.0 23.0 23.0 25.0 6.0 (24.0) 20.0 23.0 19.0
Havells 34.6 31.1 16.8 3.8 7.2 (13.2) (30.0) (41.0) 9.0 24.0 (9.0)
Polycab 13.1 7.5 19.4 19.9 (12.3) (50.0) 7.0 26.0 7.0
EBIT
Finolex 1,332 1,192 1,402 1,181 1,393 1,093 895 470 5,059 5,328 4,561
KEI 839 1,036 1,079 891 1,042 1,321 1,149 753 2,956 3,681 4,403
Havells 1,070 1,294 1,575 845 1,510 1,248 666 366 3,256 4,380 4,269
Polycab 1,759 3,037 2,097 1,867 2,019 2,584 2,729 255 3,161 8,354 9,199
OPM (%)
Finolex 18.7 15.9 17.0 14.6 19.5 15.6 13.7 12.5 17.9 17.3 16
KEI 10.4 11.8 11.1 10.4 10.5 12.0 11.1 11.6 10.8 11.0 11
Havells 14.0 15.8 17.5 10.9 18.4 17.5 10.6 7.9 12.5 13.5 15
Polycab 10.9 16.8 9.9 11.4 10.5 11.9 14.7 3.1 5.6 11.8 12.1
Source: Company, IDFC Securities Research; *V guard revenues estimated for FY20 quarterlies

Exhibit 7: Comparative valuations – FY22E

Price Mkt Cap EPS EPS P/E EV/EBITDA ROE ROCE
Company Rating
(Rs) (Rs bn) (Rs) growth (%) (x) (x) (%) (%)
Havells OP 629 3,93,343 13.2 48.8 47.8 31.3 17.3 19.2
CGCEL OP 261 1,63,309 8.1 24.8 32.2 23.0 27.8 28.5
Voltas OP 650 2,14,926 19.6 81.1 33.1 28.9 14.7 13.1
Bluestar N 549 52,713 18.5 118.1 29.6 15.0 21.8 26.2
Dixon OP 7,985 89,076 157.8 72.5 50.6 27.4 22.4 33.9
Amber OP 1,840 57,874 48.7 636.2 37.8 16.9 12.1 13.9
Orient Unrated 191 40,496 6.7 49.8 28.4 16.9 28.5
Bajaj Electricals Unrated 445 50,644 16.2 188.7 27.5 17.7 13.0
Whirlpool Unrated 2,052 2,60,335 50.4 25.8 40.7 28.9 20.0
Polycab Unrated 767 1,14,259 54.3 25.3 14.1 9.6 16.8
Symphony Unrated 896 62,671 30.4 35.8 29.5 23.7 27.0
Hitachi Unrated 2,340 63,627 64.0 63.3 36.6 22.2 18.3
Source: Company, Bloomberg (consensus estimates), IDFC Securities Research

6 | IDFC SECURITIES 20 August 2020

 Consumer Electricals
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in any of the securities mentioned or related securities. IDFC SEC and associates may from time to time solicit from, or perform investment banking, or
other services for, any company mentioned herein. Without limiting any of the foregoing, in no event shall IDFC SEC, any of its associates or any third
party involved in, or related to, computing or compiling the information have any liability for any damages of any kind including but not limited to any
direct or consequential loss or damage, however arising, from the use of this document. Any comments or statements made herein are those of the
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This document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed and may contain
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Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. IDFC SEC will not treat recipients
as customers by virtue of their receiving this report.
The analyst certifies that all of the views expressed in this research report accurately reflect his/her personal views about any and all of the subject
issuer(s) or securities. The analyst certifies that no part of his / her compensation was, is, or will be directly or indirectly related to the specific
recommendation(s) and/or views expressed in this report.

Additional Disclosures of interest:

1. The Research Analyst(s), IDFC Sec, does not have any financial interest in the company(ies)/ entities covered in this report. The associate of Research
Analyst or his relative, might have financial interest (e.g. as investor, etc.) in the company(ies)/ entities covered in this report. Please read this in
conjunction with other disclosures herein.
2. The Research Analyst, IDFC SEC or relatives of the Research Analyst collectively do not hold more than 1% of the securities of the company (ies)
covered in this report as of the end of the month immediately preceding the date of distribution of the research report.
3. Associates of IDFC SEC are engaged in different businesses and may collectively hold more than 1% of the securities of the company (ies) covered in
this report as of the end of the month immediately preceding the date or distribution of the research report.
4. The Research Analyst, his associate, his relative and IDFC SEC do not have any material conflict of interest at the time of publication of this research report.
5. IDFC SEC and its associates might have received compensation including for investment banking or merchant banking or brokerage services or
banking services or for any other products or services from the company(ies) covered in this report, in the past twelve months. IDFC SEC and its
Research Analysts did not receive any compensation or other benefits from the companies/entities mentioned in the report or third party in
connection with preparation of the research report.
6. IDFC SEC or its associates might have managed or co-managed in the previous twelve months, a private or public offering of securities for the
company (ies)/ entities covered in this report or might have been mandated by the company (ies)/ entities covered in this report for any other
assignment in the previous twelve months.
7. The Research Analyst might have served as an Officer, Director or employee of the company (ies) covered in the Research report.
8. The Research Analyst and IDFC SEC has not been engaged in market making activity for the company(ies) covered in the Research report.
Explanation of Ratings:
1. Outperformer : More than 5% to Index
2. Neutral : Within 0-5% (upside or downside) to Index
3. Underperformer : Less than 5% to Index

Copyright in this document vests exclusively with IDFC Securities Ltd.

SEBI Registration Nos. of IDFC Securities Limited

Research Analyst INH 000000 131
Stock Broker
NSE Capital Markets
NSE Futures & Options
INZ000207137
BSE Capital Markets
BSE Futures & Options
Merchant Banker INM000011336

US Disclaimer:
This report is distributed in the US, by IDFC Securities (Parent of IDFC Capital (USA) Inc.) only to major U.S institutional investors (as defined in Rule
15a-6 under the U.S Securities Exchange Act of 1934 (the “Exchange Act”)) pursuant to the exemption (a)(2) of the Rule and any transaction effected
by a U.S customer in the securities described in this report must be effected through IDFC USA as defined in the Rule.
Neither the report nor any analyst who prepared or approved the report is subject to U.S legal requirements or Financial Industry Regulatory
Authority, Inc. (“FINRA”) or other regulatory requirements pertaining to research reports or research analysts.
This communication is produced by an analyst/strategist of IDFC Securities Ltd.
This material was produced by IDFC Securities solely for information purposes and for the use of the recipient, It is not to be reproduced under any
circumstances and is not be copied or made available to any person other that the recipient, it is distributed in the United States of America by IDFC
Securities under 15a-6(a)(2). And elsewhere in the world by IDFC Securities or any authorised associate of IDFC Securities.

*Name of the company has changed to DAM Capital Advisors Limited in the records of Registrar of Companies
w.e.f. 28th July 2020, necessary application has been filed with SEBI for changing the same in their records.

7 | IDFC SECURITIES 20 August 2020

 Consumer Electricals

www.idfc.com

Research Analyst Sector/Industry/Coverage E-mail Tel.+91-22-4202 2500

Nitin Agarwal HoR: Pharmaceuticals, Agri-inputs, Midcaps nitin.agarwal@idfc.com 91-22-4202 2568
Nilanjan Karfa Financials nilanjan.karfa@Idfc.com 91-22-4202 2501
Bhoomika Nair Engineering, Cement, Power Equipment, Logistics bhoomika.nair@idfc.com 91-22-4202 2561
Rohit Dokania FMCG, Retail, Paints, Media, Midcaps, Home Improvement rohit.dokania@idfc.com 91-22-4202 2567
Mohit Kumar, CFA Construction, Power, Infrastructure Developers mohit.kumar@idfc.com 91-22-4202 2573
Ashish Kejriwal Metals, Mining ashish.kejriwal@idfc.com 91-22-4202 2594
Chirag Jain Automobiles, Auto ancillaries chirag.jain@idfc.com 91-22-4202 2643
Mehul Desai FMCG, Paints, Alcoholic Beverages, Retail mehul.desai@idfc.com 91-22-4202 2640
Miloni Bagadia Agri-inputs, Midcaps miloni.bagadia@idfc.com 91-22-4202 2663
Aasim Bharde, CFA Media, Midcaps, Home Improvement, Paints aasim.bharde@idfc.com 91-22-4202 2576
Manoj Kumar K V Construction, Power, Infrastructure Developers manojkumar.kv@idfc.com 91-22-4202 2596
Anuja Dighe Financials anuja.dighe@idfc.com 91-22-4202 2599
Kunal Kothari Metals, Mining kunal.kothari@idfc.com 91-22-4202 2678
Romil Mehta Engineering, Cement, Power Equipment, Logistics romil.mehta@idfc.com 91-22-4202 2649
Dharmendra Sahu Database Analyst dharmendra.sahu@idfc.com 91-22-4202 2580

Equity Sales Designation E-mail Tel.+91-22-4202 2500

Varun Saboo Head Sales Asia Pacific, India & Europe varun.saboo@idfc.com 91-22-4202 2626
Vijayaraghavan G SVP, Sales vijayaraghavan.g@idfc.com 91-22-4202 2690
Amit Kapoor SVP, Sales amit.kapoor@idfc.com 91-22-4202 2507
Sachin Gupta SVP, Sales sachin.gupta@idfc.com 91-22-4202 2549
Nityam Shah SVP, Sales nityam.shah@idfc.com 91-22-4202 2614
Chandan Asrani VP, Sales chandan.asrani@idfc.com 91-22-4202 2540
Equity Sales Dealing Designation E-mail Tel.+91-22-4202 2500
Suryakant Bhatt Director & Head - Sales trading suryakant.bhatt@idfc.com 91-22-4202 2693
Jayesh Chheda Director, Sales trading jayesh.chheda@idfc.com 91-22-4202 2595
Mukesh Chaturvedi Director, Sales trading mukesh.chaturvedi@idfc.com 91-22-4202 2512
Babita Sharma Director, Sales trading - Derivatives babita.sharma@idfc.com 91-22-4202 2544
Rajashekhar Hiremath SVP, Sales trading rajashekhar.hiremath@idfc.com 91-22-4202 2516

IDFC Securities Limited* DAM Capital (USA) Inc.

[Formerly IDFC Capital (USA) Inc.]
One BKC, Tower C, 15th Floor, Unit no 1511, Regus Business Centre
Bandra Kurla Complex, Bandra (East), 600 Third Avenue,
Mumbai 400 051. 2nd Floor,
INDIA New York, 10016

Board: +91 22 4202 2500 Tel: +1 646 571 2303

Fax: +91 22 4202 2504 Fax: +1 646 571 2301

Our research is also available on Bloomberg and Thomson Reuters

8 | IDFC SECURITIES 20 August 2020