
In its June quarter preview on India Industrials, Goldman Sachs highlighted contrasting sectoral trends. Demand in the cables & wires segment remains strong, supported by month-on-month increases in copper and aluminium prices in May and June. However, the summer-driven consumer durables segment is facing weak momentum, partly due to an early onset of monsoons.
Goldman expects modest revenue growth for electricals and durables players in Q1 , while cutting earnings estimates for electronics manufacturing services (EMS) and consumer durables. On the other hand, it has raised earnings expectations for cables and wires companies. Net-net, it suggested 'Buy' on Crompton Greaves, Havells India and KEI Industries; and 'Sell' on Dixon Technologies and Voltas.
Crompton Greaves Consumer Electricals – Buy | TP: Rs 420 (earlier Rs 440)
Goldman expects a subdued quarter for Crompton as cooling product sales remain sluggish due to early rains. However, pump sales and Butterfly (on a low base) should support growth. Margins are expected to improve YoY, helped by profitability in lighting and lower commodity costs.
Watch for:
Progress on rooftop solar launch and innovation initiatives
Demand outlook and sentiment
Estimates Update:
Revenue forecasts for FY26–28 cut by 1–2 per cent, and EPS lowered by 3–7 per cent due to weaker summer product sales and reduced operating leverage. Valuation multiple maintained at 35x FY27E EPS.
Havells India – Buy | TP: Rs 1,680 (earlier Rs 1,730)
Growth is expected to moderate, especially in Lloyd, amid erratic monsoon trends. Excluding Lloyd, Havells is seen posting 14 per cent YoY growth. Cables and wires remain strong, driven by the Tumkur facility ramp-up and higher copper prices. Margins to improve slightly on softer input costs.
Watch for:
Commentary on Lloyd and demand trends across categories
Inventory levels amid commodity volatility
Outlook for industrial switchgear
Estimates Update:
Topline reduced by 1–2 per cent for FY26–28, EPS cut by ~3 per cent. Valuation at 47.5x FY27E EPS is unchanged.
KEI Industries – Buy | TP: Rs 3,690 (earlier Rs 3,360)
Goldman expects 16 per cent YoY revenue growth, supported by stable exports and ramp-up of Silvassa brownfield capacity. Channel restocking is likely due to rising input prices.
Watch for:
Timelines for the Sanand plant commissioning
Export demand from the US and Middle East
Estimates Update:
Revenue fine-tuned by 0–1 per cent, EPS increased by 2–3 per cent for FY26–28. Target price raised, supported by improved operating leverage and lower risk-free rate assumption (6.5 per cent vs 7 per cent).
Voltas – Sell | TP: Rs 1,180 (earlier Rs 1,210)
Voltas is expected to post the weakest YoY growth in Goldman’s coverage. Cooling products face demand headwinds due to early monsoon and a high base. The MEP segment suffers from weak order inflow. Losses in Voltas Beko are expected to persist. New plant-related fixed costs will pressure margins further.
Watch for:
Clarity on potential demand spillover into Q2
Order pipeline in domestic and international MEP
Estimates Update:
Revenue cut by 4 per cent/2 per cent/2 per cent for FY26–28, EPS reduced by 7 per cent/4 per cent/4 per cent. Despite a P/E of 39x FY27E EPS and RoE of 14 per cent, Goldman sees continued underperformance.
Dixon Technologies – Sell | TP: Rs 11,030 (earlier Rs 10,200)
While mobile and EMS segments are likely to benefit from Motorola export ramp-up and new customer additions, higher mix of prescriptive businesses may compress margins. IT and hardware segments may contribute this quarter as the Chennai plant goes live.
Watch for:
Margin outlook with changing business mix
Production timelines for display modules and IT hardware
Estimates Update:
Revenue flat; EPS cut by 3–4 per cent due to margin pressure and minority interest. Valuation methodology remains unchanged; TP raised slightly due to a lower risk-free rate.
Amber Enterprises – Neutral | TP: Rs 6,490 (earlier Rs 6,470)
Revenue growth is expected to moderate on a high base and weak summer demand in April–May. The electronics segment remains strong, supported by anti-dumping duties on multi-layer PCBs.
Watch for:
Commissioning of JV with Yujin and expansion of Ascent Circuits
Interest and depreciation trends amid high capex
Estimates Update:
Revenue cut by 2–3 per cent, EPS lowered by 7–9 per cent. Target price marginally raised, risk-reward considered balanced.
Polycab India – Neutral | TP: Rs 5,420 (earlier Rs 5,000)
Despite copper price volatility, Polycab is expected to post 18 per cent YoY growth in cables and wires due to restocking. EPC segment performance remains steady. Exports may get a boost from Q4 spillover and tariff-driven front-loading.
Watch for:
Export trends in the context of global trade risks
Estimates Update:
Revenue estimates for FY27–28 raised by 1–2 per cent, EPS by 2–3 per cent. TP revised upward with a reduced risk-free rate assumption of 6.5 per cent.