o Trusted brand amidst the masses with 77 years of existence
Largest number of distributors which reach out to 400,000 retailers
Strong market position across product categories of appliances, lighting and fans
o Post implementation of ‘Theory of Constraints (TOC)’, business was affected initially but has now been resolved
Coverage has improved under TOC implementation with a strong response to revamped distribution strategy
Seeing strong demand for its products across all geographies as well as getting enquires for even products where it has not been traditionally present
o Focus on revamping its product portfolio with rising focus on premiumization through investments in R&D, introduction of newer products and widening portfolio
o Company recently acquired Nirlep Appliances which has a strong brand recall among consumers for certain kitchen consumer appliances . Company aims to scale up this portfolio as well over the next few years
- Increase in ad spend to create consumer pull and to keep the brand young
- Turnaround of EPC division with clearing of most legacy issues through selective bidding of projects, weekly monitoring, supplies only as and when required, faster execution, and focus on capital allocation and margins and timely collection from clients
- Reasonable valuations of 22x FY21 P/E
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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