Jefferies has shared its insights on midcap stocks, focusing on key trends in raw material prices and their implications for companies in the cables, wires, and PVC segments.
Key Highlights:
- Copper Price Trends:
- Copper prices dipped by 9% from October to mid-November but have since stabilized.
- This stabilization is expected to aid a recovery in capital expenditure (capex) in the second half of the year, supporting volume growth.
- Cable and Wire Pricing:
- Prices for cables and wires were reduced by 5% in mid-November, potentially impacting interim volumes.
- Channel destocking is another factor that could temporarily affect sales volumes.
- Key Players in Focus:
- Jefferies highlights Havells, Finolex Cables, and Polycab as key players poised to benefit from market recovery and improved raw material dynamics.
- PVC Prices and Impact:
- PVC prices rose by 5% over October-November to ₹78/kg, which is expected to improve margins for companies like Astral and Supreme Industries.
Jefferies believes that copper stability and recovering capex trends will support growth in the second half of the fiscal year, benefiting key midcap players in the segment. The rise in PVC prices is also seen as a positive development for margins in related industries.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.
