LG Electronics, Polycab emerge as growth picks amid premiumisation trend

Consumer durable demand across India is experiencing an uneven recovery during the festive season, with growth concentrated in select categories, according to market analysis. Siddhartha Khemka has identified LG Electronics and Polycab as standout picks positioned to benefit from this selective strength. The analyst cites premiumisation trends and infrastructure-driven demand as key growth catalysts for both companies. LG Electronics has been assigned a target price of Rs 2,075, while Polycab carries a target price of Rs 10,600, indicating the analyst's conviction in their respective growth trajectories.

The premiumisation trend reflects consumer willingness to upgrade to higher-quality products within the discretionary spending space, a dynamic that particularly benefits established brands with strong market positioning. For investors, this selective recovery in consumer durables carries implications for portfolio construction within India's equity markets. Companies exposed to premiumisation and infrastructure spending tend to demonstrate resilience during economic cycles where overall consumer spending remains cautious. Infrastructure demand remains a structural tailwind for cable and electrical component manufacturers like Polycab, while LG's consumer electronics portfolio stands to gain from demand for premium appliances. The uneven nature of festive recovery suggests that stock-picking rather than broad-based sector exposure may be the prudent approach for market participants seeking exposure to India's consumer durable space.

Source: Markets-Economic Times