Robust demand may sustain growth momentum for consumer durable makers

Margins could come under pressure given sharp rise in raw material costs

Stocks of consumer durable makers have been hitting their 52-week highs, given the pick-up in demand and expectations of healthy growth. Led by gains in recent months, they have given returns of 39-54 per cent over the past six months, as compared to a 32 per cent uptick for the benchmark Nifty50 index during the same period. Revenues of consumer durable companies grew 7 per cent YoY in the July-to-September quarter, led by strong demand from tier-II and tier-III cities/towns and market share gains from unorganised players. This has continued over into the third quarter on the back of a