VOLTAS

** Jefferies says it is positive on electronic manufacturing (EMS), other sectors linked to capex and summer demand in small- and mid-caps

** Top picks are Polycab POLC.NS, Amber Enterprises AMBE.NS, Voltas VOLT.NS and Crompton Greaves Consumer Electricals CROP.NS

** POLC wired for consistent growth despite Ultratech Cement's planned foray into cables and wires segment, says Jefferies

** AMBE likely to benefit from rising domestic market shares in air-conditioners (AC)

** CROP to potentially gain from double-digit growth in premium fans; Voltas to benefit from a demand uptick on forecast of hotter-than-normal summer - Jefferies

** POLC shares up 1.1% on the day; AMBE, VOLT, CROP gain about 3% each - data compiled by LSEG

** Recent market decline is opportunity for investors to evaluate quality in small-cap and mid-cap segments, says Jefferies

** India's benchmark Nifty 50 is down 14.3% from record high levels while small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 are trading 23.8% and 20.5% below their all-time high levels

(Reporting by Bharath Rajeswaran in Bengaluru)

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March 13 (Reuters) - Voltas Ltd VOLT.NS:

• VOLTAS LTD - APPROVES TRANSFER OF DUBAI AND ABU DHABI BRANCHES TO UMCL

• VOLTAS - TOTAL CONSIDERATION FOR TRANSFER 450 MILLION RUPEES TO 700 MILLION RUPEES

Source text: ID:nBSE9tztTl

Further company coverage: VOLT.NS

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** Shares of India's Voltas VOLT.NS close 3% lower at 1,352 rupees

** A Qatar court has rejected Voltas' claims against a JV between Spain's OHL International and Contrack (Cyprus) where VOLT had alleged non-payment, payment delays

** Voltas flags financial hit of about 4.02 bln rupees ($46 mln)

** Prabhudas Lilladher says the expected liability is significant, especially for the international business which has faced headwinds for several years

** So far in 2025, VOLT has lost ~25%

($1 = 87.5800 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru)

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** India's Voltas VOLT.NS falls 13% to 1,281.15 rupees, lowest level in nearly eight months

** Stock on path to log biggest single-day fall since March 2020

** Co posts higher Q3 profit but analysts flag margin deterioration and market share loss in core segment

** VOLT down after margin contraction in core unitary cooling products segment and market share loss in sub-segment room air conditioners in Q3

** Unitary cooling products segment margin for Q3 at 5.9%, lowest in 10 years, vs expectation of 7.8%, Motilal Oswal says

** Motilal Oswal, which has "buy" rating on stock, says it will review its assumptions after VOLT's post-earnings call on Thursday

** Analysts' avg rating on stock is "hold"; median PT 1,775 rupees - data compiled by LSEG

(Reporting by Vivek Kumar M)

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Jan 29 (Reuters) - Voltas Ltd VOLT.NS:

• Q3 CONSOL NET PROFIT 1.32 BILLION RUPEES

• Q3 CONSOL REVENUE FROM OPERATIONS 31.05 BILLION RUPEES

Source text: [ID:]

Further company coverage: VOLT.NS

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Removes extraneous word from headline, no changes to text

Dec 27 (Reuters) - OHLA OHLA.MC:

• INFORMED ON THURSDAY IN RELATION TO ONE OF ITS LAWSUITS IN QATAR

• SAID QATARI COURT OF FIRST INSTANCE HAD DISMISSED MAIN CLAIM OF SUBCONTRACTORS KENTZ-VOLTAS AND COUNTERCLAIM BY JOINT VENTURE (OHLA AND CONTRACT CYPRUS LTD)

• ON DEC 24, COURT OF APPEAL HANDED DOWN JUDGMENT OVERTURNING LOWER COURT'S JUDGMENT, ORDERING IT TO RULE ON THE MERITS OF THE CASE

Source text for Workspace: nCNMLzsPp
Further company coverage: OHLA.MC

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Dec 6 (Reuters) - Voltas Ltd VOLT.NS:

• VOLTAS LTD - CESTAT DECIDES IN FAVOUR OF VOLTAS, DROPS DEMAND OF 41.3 MILLION RUPEES

Source text: ID:nBSE1MN7FS

Further company coverage: VOLT.NS

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By Bharath Rajeswaran

Nov 7 (Reuters) - MSCI added five Indian companies to its Global Standard Index late on Wednesday, a move that brokerage Nuvama said would lift the country's weightage on the index to 20%, further narrowing the gap with China.

MSCI said there would be 156 Indian stocks in the index, but that is only one-fourth of China's 598, signalling scope for further inclusion of Indian stocks on the index.

The changes will take place after the markets close on Nov. 25, MSCI said.

The inclusion of the stocks will lift India's weightage in the index to a record 19.8% from 19.3% earlier, narrowing the gap with China, which has slipped to 26.8% from 27%, Nuvama Alternative and Quantitative Research estimated.

It will also likely attract $2.5 billion in passive inflows into India's equity markets, Nuvama said.

China has the highest weightage in the MSCI Global Standard index, while India has been in second place since the end of 2021.

Air conditioner maker Voltas VOLT.NS, realty developer Oberoi Realty OEBO.NS, stock exchange operator BSE BSEL.NS, Kalyan Jewellers KALN.NS, and drug maker Alkem Laboratories ALKE.NS are the latest additions to the index.

Indian markets saw inflows of about $3 billion into equities after the previous MSCI rebalancing in August when seven stocks were added.

"We remain extremely bullish on India, especially with active participation from mutual funds and high net worth individuals (HNIs)/retail investors, and anticipate many more inclusions in the emerging markets index," said Abhilash Pagaria, head of Nuvama research.

Seven existing stocks, including top private lender HDFC Bank HDBK.NS and Tata Power TTPW.NS, saw an increase in their weightage.

HDFC Bank is now the highest-weighted Indian stock in the MSCI indices at 7.08%, surpassing Reliance Industries' RELI.NS 6.08%.

No Indian companies have been removed from the MSCI Global Standard Index so far in November.

Additionally, around 13 firms, including Eureka Forbes EURK.NS, Indegene INEG.NS, and PC Jeweller PCJE.NS, were added to the MSCI Small Cap Index, bringing the total number of small-cap stocks to 525.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Abinaya Vijayaraghavan)

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Oct 29 (Reuters) - Voltas Ltd VOLT.NS:

• Q2 CONSOL NET PROFIT 1.34 BILLION RUPEES; IBES PROFIT EST. 1.29 BILLION RUPEES

• Q2 CONSOL REVENUE FROM OPERATIONS 26.19 BILLION RUPEES; IBES EST. 27.08 BILLION RUPEES

Source text: ID:nBSE8SlrKn

Further company coverage: VOLT.NS

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Sept 2 (Reuters) - Voltas Ltd VOLT.NS:

• VOLTAS LTD- GETS TAX DEMAND FOR ABOUT 90 MILLION RUPEES

Source text for Eikon: ID:nBSE5zymNT

Further company coverage: VOLT.NS

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** Shares of Voltas VOLT.NS jump 4.7% to record high of 1,607 rupees, set to snap a three-day losing run

** Stock's previous record high was 4 sessions back on Aug 12 after strong Q1 results

** Over the weekend, analysts updated their views, with at least 17 raising their price targets, per LSEG data

** Prabhudas Lilladher upgrades to "hold" and Anand Rathi Research to "buy"

** Anand Rathi says Voltas "firing on all cylinders", noting strong air conditioner sales and continued market share gains in refrigerators and washing machines

** Analysts avg rating still at "hold" but median PT jumps to 1,559 rupees from 1,400 rupees on results day -LSEG data

** Stock jumped 11% on Aug 12 after Q1 report but dropped ~3% in next three sessions

** VOLT has jumped ~64% YTD, more than Crompton Greaves CROP.NS (~44%) and Havells India HVEL.NS (~38%) but less than Blue Star's BLUS.NS 83% surge

(Reporting by Kashish Tandon in Bengaluru)

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Aug 13 (Reuters) - Life Insurance Corporation of India LIFI.NS:

• LIC - CUTS ITS SHAREHOLDING IN VOLTAS FROM 6.856% TO 4.754%

Source text for Eikon: ID:nBSE7PXJb3

Further company coverage: LIFI.NS

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Aug 12 (Reuters) - Voltas Ltd VOLT.NS:

• VOLTAS LTD JUNE-QUARTER CONSOL NET PROFIT 3.34 BILLION RUPEES

• VOLTAS LTD JUNE-QUARTER CONSOL REVENUE FROM OPERATIONS 49.21 BILLION RUPEES

Source text for Eikon: [ID:]

Further company coverage: VOLT.NS

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BENGALURU, July 18 (Reuters) - Home appliances maker Havells India HVEL.NS reported a smaller-than-expected first-quarter profit on Thursday, as higher expenses offset improved demand for its air conditioners and fans.

Profit rose 43.1% from a year earlier to 4.11 billion rupees ($49.15 million) for the three months ended June 30, missing analysts' expectations of 4.31 billion rupees, as per LSEG data.

The water heater maker's revenue from operations rose 20.2% to 57.98 billion rupees, while total expenses rose 18.1% to 53.22 billion rupees.

For further earnings highlights, click nFWN3JA0SB

KEY CONTEXT

India's summer lasts from March to May, yet many Indian cities saw warmer nights during June. Hot weather increases consumer spending on electrical appliances.

Analysts said that the country's consumer durables sector experienced healthy demand during the quarter due to severe summer and despite price increases.

Prices of raw material such as copper and aluminium rose, they added.

Havells India, biggest among its peers by market capitalisation, is the first to report first-quarter results.

PEER COMPARISON

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.6170 Indian rupees

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)

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July 16 (Reuters) - Voltas Ltd VOLT.NS:

• GOT GST ORDER WITH TAX DEMAND OF 5.9 MILLION RUPEES, PENALTY OF 6 MILLION RUPEEES

Further company coverage: VOLT.NS

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July 8 (Reuters) - Voltas Ltd VOLT.NS:

• GETS TAX ORDER OF 4.6 MILLION RUPEES, INTEREST 1.9 MILLION RUPEES

Further company coverage: VOLT.NS

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By Praveen Paramasivam

BENGALURU, June 28 (Reuters) - Demand for beer in India is at a multi-year high and air conditioner sales are skyrocketing as the intense, unprecedented heat scorching parts of the country becomes a boon for some consumer businesses.

Temperatures in the Indian capital Delhi and the western state of Rajasthan soared to almost 50 degrees Celsius in recent weeks, with scientists saying the hot summer has become even more intense due to human-driven climate change. While rains lashed Delhi on Friday, many northern areas such as Punjab recorded temperatures above 40 C on Thursday.

Beer sales volume are expected to jump 10% this summer and demand is at its highest since the onset of the COVID-19 pandemic, said Vinod Giri of Brewers' Association of India which represents leading beer makers Carlsberg, Anheuser-Busch InBev ABI.BR and United Breweries UBBW.NS.

Beer in this scorching heat, Giri said, makes Indians "feel better without getting too high on alcohol."

The heat has also driven power demand to a record peak as more people seek ways to cool down.

B. Thiagarajan, managing director at ACs-to-air purifier maker Blue Star BLUS.NS, said he has not witnessed such strong sales for air conditioners in the more than 30 years he has worked in the industry.

It's been a "mad rush ... anything called air conditioner would have got sold," he said.

The number of affluent people in India is rising rapidly, and Thiagarajan said overall air conditioner sales will grow 50% in the April-June summer months, outstripping the industry's expected demand increase of 25% to 30%.

Other businesses are also enjoying a strong summer.

Quick delivery service Swiggy Instamart said it is seeing a sharp rise in orders for ice cream and cold beverages.

Walmart-owned WMT.N Indian e-commerce website Flipkart said demand for top-end sunscreen products jumped 40% between February-May 2024 versus the previous year, with products such as sunscreen sticks proving particularly popular.

"Heatwaves made me use sunscreens very frequently, like, 3 to 4 times a day," said S. Dinesh, 27, whose job demands him to stay out in the sun during the day.

But even as the heat pushes up demand for some online products, it is causing logistical challenges as more delivery workers fall ill due to the high temperatures, said Ajay Rao, CEO of Emiza, a logistics company which counts Flipkart and Mamaearth HONA.NS among its customers.

"People are not able to actually cope with the outside temperatures," he said.

(Reporting by Praveen Paramasivam; Editing by Aditya Kalra and Miral Fahmy)

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June 20 (Reuters) - Voltas Ltd VOLT.NS:

• EXECUTED SHARE PURCHASE AGREEMENT/S WITH UNIVERSAL MEP PROJECTS PTE

• EXECUTED SHARE PURCHASE AGREEMENT/S WITH UNIVERSAL MEP PROJECTS IN REPUBLIC OF SINGAPORE

Further company coverage: VOLT.NS

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BENGALURU, May 20 (Reuters) - Appliances maker Whirlpool of India WHIR.NS reported a smaller-than-expected fourth-quarter profit on Monday, hurt by stiff competition and higher input costs, while demand remained steady for its cooling appliances.

Consolidated net profit rose nearly 24% to 775.9 million rupees ($9.3 million) in the three months ended March 31, missing analysts' estimates of 899.6 million rupees, according to LSEG data.

Revenue from operations in the Indian unit of NYSE-listed Whirlpool Corp WHR.N rose nearly 4% to 17.34 billion rupees.

Expenses surged 2.2%, led by a nearly 31% rise in input costs.

For further results highlights, click [here]

KEY CONTEXT

Record high temperatures in India have led to a surge in demand for cooling products like air conditioners and refrigerators, resulting in higher sales for home appliance makers such as Whirlpool India.

However, analysts said Whirlpool's Indian arm is dealing with fierce competition from new players, premium brands diversifying into mass markets and multi-brand retailers promoting private labels.

In February, parent company Whirlpool Corporation sold 24% of its stake in the India unit for about $468 million, aiming to reduce its debt.

Rival air conditioner makers Havells India HVEL.NS and Blue Star BLUS.NS reported a rise in quarterly profit, while Voltas VOLT.NS missed quarterly profit estimates due to surging expenses.

PEER COMPARISON

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.2810 Indian rupees

(Reporting by Navamya Ganesh Acharya in Bengaluru, Additional reporting by Manvi Pant; Editing by Ravi Prakash Kumar)

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BENGALURU, May 14 (Reuters) - Consumer appliances maker Bajaj Electricals BJEL.NS reported a fourth straight quarter of profit decline on Tuesday, missing estimates due to sluggish demand for its lights, water heaters and kitchen appliances.

The Mumbai-based company said consolidated net profit fell to 293.1 million rupees ($3.5 million) for the three months ended March 31, from 518.5 million rupees a year earlier.

Analysts, on average, had expected a profit of 573.2 million rupees, as per LSEG data.

Revenue from its lighting products segment fell 11.3% to 2.71 billion rupees, while revenue from the segment that makes air coolers, fans, room heaters and kitchen appliances, reported a drop of 7% as consumers postponed discretionary purchases amidst persistent inflation.

Sales in its lighting products segment dropped due to lower prices of LED products in consumer lighting and a higher base effect in professional lighting, the company said in a statement.

Additionally, the company approved a proposal to borrow funds through the issuance of non-convertible debentures, up to an amount not exceeding 5 billion rupees, via private placement.

The board also recommended a dividend of 3 rupees per share for the fiscal year ended March.

Shares of Bajaj Electricals closed 3% higher on Tuesday and are down 4% so far this year.

($1 = 83.5064 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru)

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** Shares of home appliances maker Voltas VOLT.NS down 6.5% at 1,299.0 rupees

** VOLT reports smaller-than-expected Q4 profit on higher expenses; revenue from operations rose 42%

** Stock on track to decline for third straight session, if losses hold

** Analysts, on avg, rate VOLT "hold", median PT of 1,112 rupees - LSEG

** Rivals Havells HVEL.NS also rated "hold", Blue Star BLUS.NS rated "buy", while Johnson Controls-Hitachi Air Conditioning India JCHA.NS has "sell" - LSEG

** VOLT up 33% YTD vs Nifty mid-cap index's .NIFMDCP100 7.8% rise

(Reporting by Rama Venkat in Bengaluru)

(([email protected]; https://twitter.com/ramavenkat0607;))

May 7 (Reuters) - Voltas Ltd VOLT.NS:

• VOLTAS Q4 CONSOL NET PROFIT 1.16 BILLION RUPEES; LSEG IBES PROFIT EST. 2.13 BILLION RUPEES

• VOLTAS Q4 CONSOL REVENUE FROM OPERATIONS 42.03 BILLION RUPEES; LSEG IBES EST. 38.13 BILLION RUPEES

• VOLTAS YEAR AGO Q4 CONSOL PROFIT 1.44 BILLION RUPEES, REVENUE 29.57 BILLION RUPEES

• VOLTAS LTD - DIVIDEND 5.5 RUPEES PER SHARE

Source text for Eikon: ID:nBSE78T33v

Further company coverage: VOLT.NS

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BENGALURU, May 2 (Reuters) - Indian air-conditioner (AC) maker Blue Star's BLUS.NS fourth-quarter adjusted profit jumped more than 46% on Thursday, buoyed by heavy demand for its ACs as consumers prepared for a hotter-than-usual summer.

WHY IT'S IMPORTANT

India is currently experiencing a blistering summer, which has driven up sales of products such as ACs and coolers.

In March, Blue Star said it launched dozens of new home AC products, targeting a 25% jump in revenue from that business this summer, compared with a 5% rise last year.

Peer Havells India HVEL.NS also posted a higher quarterly profit on strong demand for room ACs and fans. Voltas VOLT.NS is expected to release its results next week.

BY THE NUMBERS

Mumbai-based Blue Star's consolidated profit before exceptional items and tax jumped to 2.14 billion rupees ($25.6 million) in the quarter, from 1.46 billion rupees a year ago.

Its net profit, however, fell nearly 29% due to the year-ago quarter recording a one-time gain of 1.71 billion rupees from the sale of land.

Blue Star's revenue from operations rose nearly 27%. Revenue in its business that makes ACs and commercial refrigerators jumped 35%.

KEY QUOTE

"The summer season has also begun well and we anticipate significant demand for room air conditioners and commercial refrigeration products to continue," Chairman and Managing Director Vir S. Advani said.

GRAPHIC

** All values in the graphic are expressed in percentages (%)

($1 = 83.4485 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Savio D'Souza)

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** Air conditioner maker Voltas VOLT.NS up 5% at 1,365 rupees, top gainer on Nifty mid-cap 100 index .NIFMDCP100

** UBS upgrades VOLT to "buy" from "neutral", raises PT by 103.4% to Street-high of 1,800 rupees on potential market share gains of 23% in FY26 vs 19% by Dec-end 2023

** Says VOLT has reworked its supply chain in room air conditioner (RAC) segment to reduce costs

** Adds new entrants will find it difficult to lower costs to match co, leading industry into early phases of consolidation and market share gains for VOLT

** VOLT, however, only air conditioner maker with avg analyst rating of "hold", median PT 1,101 rupees - LSEG

** Rivals Havells HVEL.NS and Blue Star BLUS.NS rated "buy", while Johnson Controls-Hitachi Air Conditioning India JCHA.NS has "sell" - LSEG

** VOLT up 38.4% YTD vs mid-cap index's 10.5% rise

(Reporting by Rama Venkat in Bengaluru)

(([email protected]; https://twitter.com/ramavenkat0607;))

April 19 (Reuters) - Voltas Ltd VOLT.NS:

• VOLTAS LTD- GETS TAX ORDER OF 12.9 MILLION RUPEES, PENALTY 1.3 MILLION RUPEES, INTEREST 12.8 MILLION RUPEES

Source text for Eikon: ID:nBSE2DPRvB

Further company coverage: VOLT.NS

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April 15 (Reuters) - Voltas Ltd VOLT.NS:

• GETS TAX DEMAND NOTICE FOR 14.1 MILLION RUPEES

• INTEREST PAYMENT OF 15.3 MILLION RUPEES RUPEES AND PENALTY OF 1.4 MILLION RUPEES

Source text for Eikon: ID:nBSEYvZRd

Further company coverage: VOLT.NS

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** Shares of Voltas VOLT.NS up as much as 13% to hit record high of 1,365.7 rupees, last up 9.6%

** The air conditioners maker's FY24 air conditioner sales volume jumped 35% y/y to 2 million units, it grew 72% for Q4

** Stock on track for steepest intraday gain since June 2020

** Stock has been trading above its 200-day simple moving avg since Nov 2023

** Over 3.6 mln shares traded, 2.4x the 30-day avg

** Analysts' avg rating on stock is "hold", median PT is 1,100 rupees, a 10.7% discount to last close - LSEG

** Including session's gains, stock up 38% YTD, while rivals Havells HVEL.NS gained 15% and Blue Star BLUS.NS rose 47%

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** Indian air conditioner maker Voltas' VOLT.NS shares up as much as 1.9% to 1,240.70 rupees, highest in almost two years

* HSBC Global Research in a note on Thursday raised PT on company's shares to 1,350 rupees from 1,250, maintained "buy" rating

** Brokerage raised margin assumptions for company's air conditioning products unit by 40-50 basis points over FY24-26

** Brokerage expects air conditioner manufacturers such as Voltas to benefit from lower input costs, anticipating sharp margin improvement

** Mean analyst rating "hold", with median PT of 1,097.50 rupees; HSBC's PT highest - LSEG

(Reporting by Navamya Ganesh Acharya in Bengaluru)

(([email protected]; +91 8805175330))

By Bharath Rajeswaran

MUMBAI, March 26 (Reuters) - The yawning divide between the super-rich and middle-class in India's booming economy is set to persist, if the "underperformance" of consumer stocks in the raging stock market is anything to go by.

Stock prices of consumer firms selling soap, hair oil and refrigerators are seeing double-digit gains but are still lagging benchmark Indian stock indexes as low income growth and volatile inflation hurt demand for everyday goods. Meanwhile, luxury goods are flying off the shelves.

The macro trends bear that out. Asia's third-largest economy is set for a 7.6% expansion in the financial year ending this month, but private consumption, which contributes 60% of economic growth, is expected to grow at just 3% - the slowest in two decades, excluding the COVID-19 pandemic years.

The wealth gap has widened. The wealth concentrated in the richest 1% of the world's most populous nation is at its highest in six decades, research group World Inequality Lab said.

"There is a drastic shift in household income from lower to higher middle class and from higher to upper class that is the driving engine for the growth in the premium segment," said Vineet Arora, managing director at Singapore-based NAV Capital, which manages 8 billion rupees ($95.95 million) in its Global Opportunities Fund.

The premium segment, comprising companies that sell cars, high-end electronics, expensive watches and jewellery, is seeing brisk business and soaring share prices. Tata group-owned Titan Company TITN.NS has seen its share price rise 44.3% over the past 12 months while luxury watch retailer Ethos ETHO.NS has gained 162%.

In contrast, the gauge of fast moving consumer goods (FMCG) firms, the Nifty FMCG .NIFTYFMCG, has risen 18% over the past year, compared with the benchmark Nifty 50 .NSEI which is up 30% and near record highs.

Four of five fund managers that Reuters spoke to said they expect this relative underperformance to persist for another two or three quarters, till economic growth broadens.

"While the premium segment offers some growth potential, a broader sector revival relies on improved rural demand and government initiatives," Arora said.

Consumption in segments that cater to groups where income growth is weak has been tepid, said Sonam Udasi, senior fund manager at Tata Asset Management, which is underweight FMCG stocks in its India Consumer Fund.

Out of 90 FMCG categories tracked by market research firm Kantar, half either saw a drop or no change in consumption in 2023, it said in a report earlier this month.

Hindustan Unilever (HUL) HLL.NS, the Indian arm of UK's Unilever ULVR.L, posted just a 0.6% increase in October-December quarterly profit while sales slipped as competition in the consumer goods space heated up and demand in rural regions remained low.

The stock has been among the worst performers in the benchmark Nifty 50 index .NSEI and the worst performer in consumer index .NIFTYFMCG, down 8.4% over the past 12 months.

COST OF LIVING

Manjunath, 35, works at a dry cleaning shop in Marathahalli, Bengaluru, and has to support a family of five on his monthly income of 30,000 Indian rupees ($360).

Rising prices for staples such as vegetables and the popular 'surti kolam' rice, means he had to cut other spending.

"I had planned to buy a refrigerator before the summer. But I have not been able to save enough for that," he said.

But for consumers in a slightly higher income bracket, such as Ganesh Kumar, who works at a leading technology firm in Chennai and earns 120,000 rupees per month, big ticket purchases such as jewellery or family holidays have become affordable.

"After COVID and work-from-home, a lot of expenses have come down for people like us. Now I spend on comfort," he said.

In an index of consumer durables .NIFCODU, 10 of the 15 stocks, including refrigerator maker Voltas VOLT.NS and popular washing machine manufacturer WhirlpoolWHIR.NS, have underperformed benchmark indices in the current financial year.

Foreign investors have sold a net 31.35 billion rupees worth FMCG stocks in the last 12 months and 79.45 billion rupees of consumer durable stocks. They have, however, poured in 1.81 trillion rupees into Indian stocks over this period.

"The story of premiumisation is unfolding in the consumption space," said Nirali Bhansali, equity fund manager at SAMCO Mutual Fund, which is underweight both consumer staples and durables, and positive on stocks such as Ethos and Titan but worried they are too richly valued.

The FMCG index is trading at a decade-high 51 times 12-month forward earnings and the consumer durables index at 69 times. Fast rising stocks such as Titan and Ethos are above that, at 93 and 82 times, respectively.

The shift to premium brands is still in its infancy in India and will pick up further in the next decade as incomes increase, said Abhijit Bhave, managing director and CEO of Equirus Wealth, a wealth management firm with assets worth over $900 million under management.

"Evolving consumer preferences, changes in lifestyle patterns, and the increasing willingness of certain consumer segments to spend more on premium products despite economic uncertainties are leading to this transition."

EBITDA margins of consumer companies catering to mass demand are at 19%-32%, aided by moderating commodity prices and cost optimisation measures to offset the impact of tepid sales, while the margin growth of companies in premium segments like Titan and Ethos hover around 10%-20%, due to volatility in gold prices.

However, volume growth of companies in the premium segment is at 10%-16%, compared to sub-5% growth of companies in the mass segment, according to Aishvarya Dadheech, chief investment officer at Fident Asset Management.

($1 = 83.3512 Indian rupees)

(Reporting by Bharath Rajeswaran; Editing by Vidya Ranganathan and Kim Coghill)

(([email protected]; +91 9769003463;))

** Morgan Stanley upgrades India's Voltas VOLT.NS on bets of stronger air conditioner (AC) demand, driven by above-normal maximum temperatures this summer

** Brokerage recommends "equal-weight" from "underweight" earlier, hikes PT to 1,160 rupees from 737 rupees

** Says harsh summers likely after India Meterological Department forecasts above-average temperatures for March

** Voltas bullish AC penetration increasing, but margins may not improve due to competition - note

** Meanwhile, rival Blue Star BLUS.NS expects 25% jump in AC revenue from summer demand boost

** Avg analyst rating on VOLT "hold" vs "buy" for BLUS - LSEG

** VOLT, which is down 0.3%, has gained 10% so far this year vs BLUS's 41% jump

(Reporting by Hritam Mukherjee in Bengaluru)

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