Motilal Oswal: Consumer Durables Segment Check - Commodity Price Inflation Warrants Price Hikes
Customers look at electric fans inside an Ocean Supercenter store. (Photographer Brent Lewin/Bloomberg)

Motilal Oswal: Consumer Durables Segment Check - Commodity Price Inflation Warrants Price Hikes

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.

Motilal Oswal Report

The recent price increases in various commodities have emerged as a key input price risk to the sector. While we are witnessing price actions across categories to offset such risks, the impact may vary across categories/companies as summarized below.

Various commodities are witnessing a 15-25% YoY surge in prices, thereby raising concerns on input costs.

For instance, copper is up 25%, steel (over 25%), and aluminum (over 14%). Even plastic prices are seeing a strong upsurge.

Contrary to normal wisdom, commodity price inflation is not necessarily a negative catalyst as its impact varies across segments, and thereby various companies, depending on their product portfolio as well as their ability to undertake price increases.

Click on the attachment to read the full report:

Motilal Oswal Consumer Durable Sector Update.pdf

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