Value investor- India mid & small caps

Bhaskar Chakraborty

Thematic (Sector/Industry)

India Consumer discretionary / Thematic (Sector/Industry)

Since 1QFY18 was impacted by destocking owing to impending GST rollout and 2Q has been impacted by restocking, we decided to look at 1HFY18 performance for our discretionary universe. The following are the key takeaways-<ul><li>Consumer Durables- Supply chain least impacted by GST, reports stellar growth</li><li>Paints- Festive demand weaker than anticipated, inadequate price hikes to defray input cost inflation impact profitability.</li><li>Consumer electrical- Supply chain unorganized and heavily impacted by GST. Demand remains weak, inadequate price hikes to defray input cost inflation impact profitability.</li><li>Cooling products- Blue Star’s consumer business grew faster than Voltas’; project business profitability improves for both; Symphony recovers ground in 2Q.</li><li>Building materials- Supply chain unorganized and heavily impacted by GST, demand remains weak, inadequate price hikes to defray input cost inflation impact profitability.</li></ul>

Since 1QFY18 was impacted by destocking owing to impending GST rollout and 2Q has been impacted by restocking, we decided to look at 1HFY18 performance for our discretionary universe. The following are the key takeaways-Consumer Durables- Supply chain least impacted by GST, reports stellar growthPaints- Festive demand weaker than anticipated, inadequate price hikes to defray input cost inflation impact profitability.Consumer electrical- Supply chain unorganized and heavily impacted by GST. Demand remains weak, inadequate price hikes to defray input cost inflation impact profitability.Cooling products- Blue Star’s consumer business grew faster than Voltas’; project business profitability improves for both; Symphony recovers ground in 2Q.Building materials- Supply chain unorganized and heavily impacted by GST, demand remains weak, inadequate price hikes to defray input cost inflation impact profitability.

Crompton Greaves Consumer Electricals (CROMPTON IN)

India Consumer Discretionary: Key Takeaways of 2QFY18 Results