BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We cut FY22/23 earnings by 13%/ 6% given -
- dampened summer season sales due to Covid-19 and
- commodity inflation-led margin pressure.
The company remained cautiously optimistic even as buoyant summer season demand has been impacted by second wave of Covid-19.
Unprecedented increase in commodity cost and ocean freights are likely to put pressure on margins despite two tranches of price hikes (5%/3%).
However, management remains confident of sustained market share gains in room air conditioner (1% annually; currently at 25.6%) while maintaining margins at minimum of 12%-12.5% led by -
- wide distribution reach (19,000 touchpoints)
- strong brand recall
- supply chain efficiencies
- calibrated price increases
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