Top Consumer Durables Stocks in India

Consumer durables stocks represent shares of companies that produce and distribute long-life household appliances, such as refrigerators, washing machines, and lighting products, reflecting consumer spending patterns and infrastructure growth within the economy.

1. Dixon Technologies (India) Ltd: Dixon Technologies has 17 plants that assemble TVs, smartphones, LED lighting and appliances and provides design-to-delivery manufacturing services to global brands to anchor their localisation in India.
2. Voltas Ltd: Voltas, a Tata company, is the leading manufacturer of room air conditioners in India. It undertakes large mechanical, electrical and plumbing projects globally and, through a Beko joint venture, retails refrigerators, washing machines and dishwashers.
3. Blue Star Ltd: Blue Star has 7 plants in India that manufacture residential and commercial cooling systems, pairing compressor technology with exports to the Middle East, Africa, and Southeast Asia.
4. Amber Enterprises India Ltd: Amber Enterprises has 27 integrated plants in India that supply room air conditioners and components, offering design, fabrication, moulding, and PCB capabilities, and is expanding into railway HVAC modules.
5. Crompton Greaves Consumer Electricals Ltd: Crompton Greaves Consumer Electricals manufactures ceiling fans, LED lighting, pumps, water heaters and kitchen appliances, with R&D, multiple factories and retail channels to reach households.

Here are a few steps you can follow to invest in the best consumer durables stocks in the NSE:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top consumer durables shares in India that are of interest to you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers over 200 built-in filters to choose from, allowing investors to select the parameters for research and generate a consumer durable stocks list.
3. Place a ‘Buy’ Order on the best consumer durable stocks of your choosing.

• Premiumisation: The increased demand for high-value and technologically advanced appliances may drive sustained growth in sales.
• E-commerce Growth: Online sales might further account for over 14% of total sector revenues, which may lead to further expansion in smaller cities.
• Government Support: Expansion of PLI schemes and Make in India initiatives may provide significant incentives for domestic manufacturing growth.

• Earnings Visibility from Government Support: Companies benefiting from schemes like PLI and Make in India may have clearer growth trajectories due to higher localisation, production scale-up, and possible margin improvements.
• Growth from Premiumisation & Innovation: Firms introducing smart, energy-efficient products might see better average selling prices and more frequent product upgrades, which can lead to more consistent sales and earnings.
• Risk Reduction via Diversification: Companies with wide-ranging product lines and multi-channel distribution, including rural-focused strategies, might offer more stable revenue streams and resilience against market fluctuations.

• Economic Cyclicality: The performance of consumer durable stocks may be influenced by macroeconomic cycles, consumer confidence, and spending patterns. These stocks can be more volatile during economic downturns, increasing the risk of loss.
• Input Costs: Fluctuations in the prices of raw materials like steel, copper, and semiconductors may impact production costs. It may affect the profit margins in the consumer durables sector.
• Competition: The presence of both domestic and multinational brands may result in pricing pressures. It is because the companies compete for market share in segments where differentiation is limited.
• Supply Risks: Disruptions in global and domestic supply chains, caused by factors like geopolitical tensions, logistical issues, and natural disasters, may lead to delays or higher costs for businesses in the consumer durables sector.

• Product Range: The balance between premium and mass market products might give an idea of the company’s positioning in the market and growth potential in different consumer segments.
• Distribution Reach: The ability to reach urban, semi-urban and rural markets may give a diversified revenue stream and reduce dependence on any one region.
• Financing Partnerships: Partnerships with financing institutions like BNPL and EMIs may impact sales volumes by opening up the market to a larger customer base.
• Innovation Pipeline: Companies that integrate IoT, AI, and smart features in their products might have a competitive advantage and drive future growth and market share.