Prime stock recommendation: A consumer durables play gearing for a comeback

1. 

   Viren acharya

   September 6, 2022 at 8:33 pm

   Nice article , V Gaurd has a strong hold in voltage stabilizers, and needs to break in other areas. Interestingly Orient looks more attractive with an all round portfolio and equally good ratios.
   Any opinion on this ?
   1. 

      N V Chandrachoodamani

      September 7, 2022 at 10:10 am

      Welcome your query sir

      Agree with your observation on Orient, which is predominantly a major player in the FAN and lighting segments.
      And financial performance and ratios have been good since listing post demerger

      While choosing V Guard, I was looking at Orient also to see whether V Guard is better positioned over it. Following factors led to choose it over Orient
      1. Ability to expand portfolio beyond stabilizers (stabilizer 30% now)
      2. Good capital allocation decisions in favor of gaining scale and market share
      Eg. Switches & switch gears, new manufacturing plant for water heaters and fans to gain control of design and move to premiumisation
      3. Progressive initiative to buy stake in an energy technology start-up to get technology access (if pilot projects succeed)

      Both are almost similarly valued (orient post recent sharp correction) and has similar return ratios and both are mid-sized players in a highly competitive business.

      So, it is difficult to make big distinction between the two to say one is far superior over other. But the growth prospects of V Guard looks more promising to us and we may have to again see the progress over a period of time on both. May be 3 – 5 Yrs to see who will emerge as outlier.

      Thank you
      1. 

         Viren acharya

         September 7, 2022 at 10:42 am

         Thanks for the validation
2. 

   cvasanth2707

   September 6, 2022 at 9:26 am

   Generally, what are the megatrends that primeinvestor is focusing on for the long term?
   1. 

      N V Chandrachoodamani

      September 6, 2022 at 11:58 am

      Welcome your query sir

      Kindly refer to our Equity outlook 2022 where we have mentioned the trends we were looking at
      https://staging.primeinvestor.in/prime-equity-outlook-2022/

      Meanwhile, we also came up with 2 thematic smallcases to play two emerging trends
      https://primeinvestor.smallcase.com/

      Thank you
      1. 

         cvasanth2707

         September 6, 2022 at 3:41 pm

         Thank you Choodamani.

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