In Q2FY22, companies in the I-direct consumer discretionary universe are likely to report strong revenue growth of ~18% YoY. This is largely supported by a favourable base and demand revival led by easing of lockdown restrictions post the second wave of pandemic. We believe a swift demand recovery aids our coverage companies to cross their pre-Covid-19 level sales in Q2FY22. The home building material companies in the paints and piping segment are likely to report strong revenue growth backed by a pick-up in real estate demand & renovation activity. Paint majors such as Asian Paints & Berger Paints are likely to report strong revenue growth of 21% and 20% YoY led by volume growth of 15% & 14% YoY respectively. On the piping front, Supreme Industries, Astral Poly are likely to report strong revenue growth of 31%, 36% YoY, respectively, supported by favourable base and price hikes. In our electrical consumer durables universe, Havells and Crompton Greaves Consumer are likely to report strong revenue growth of ~15% YoY led by a favourable base and strong demand for kitchen & home appliances. New product launches and upgradation of kitchen/home appliances amid continuance of work from home culture were key triggers for demand growth.
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