Hi…
Elin’s Q2 results were disappointing
My reading of the situation is as follows –
During COVID months ( say Mar 20 – Mar 22, all major / minor waves included ) – a lot of products were over consumed across the country. Most of these belong to small home appliance categories. One can see a similar trend across the inner-wear, athleisure categories – where companies like Page Industries reported a sudden surge in demand in 2021, early 22 ( as people stayed at home far longer than usual ) and then the demand suddenly plummeted
Similar trends are being shown by companies selling small home appliances, like – CG Consumer products, TTK Prestige etc where the demand slowdown post FY 22 is unmistakable
Basically, the households across India overbought these kind of items, say before Mar 22. My ballpark estimate of situation correcting itself is 18-24 months ( rough estimate )
The slowdown in small appliance category is directly reflected in the sales of ELIN electronics for obvious reasons
Basically – it’s now a patience game
Dic : holding, ready to be patient for another 6 odd months with frequent situational reviews as I feel that once the situation corrects, companies like Erin electronics, Page Industries should do really well
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