September 5, 2018 / 7:40 AM / 9 months ago

BUZZ-Jefferies starts Finolex, V Guard with "buy"; says bullish on sector

** Jefferies initiates coverage of Finolex Cables Ltd with a “buy” rating and PT of 690 rupees, Havells India Ltd with “hold” and a PT of 745 rupees and V Guard Industries Ltd with a “buy” and PT of 260 rupees

** Brokerage bullish on Indian electricals cos, says sector to benefit from nationwide Goods and Services Tax (GST) and required billing mechanism called E-Way Bill

** Key emerging trend among electricals is rapid diversification into durables and appliances, which helps de-risk their business models and optimize product mix - Jefferies

** Price differential between branded and unbranded converges, foresee accelerated demand transition to organized players - Jefferies

** Demand shift to organized segment, govt’s thrust on housing and rural electrification, new product launches, and deeper penetration in rural regions are among key catalysts for electricals cos, Jefferies adds

** Finolex, Havells, V Guard down between 1.46 pct and 3.28 pct; broader market down on a weaker rupee

** Eight out of 9 analysts covering Finolex rate the stock a “buy”, 11 of 19 have a “buy” rating on V Guard and 27 of 37 rate Havells “buy”

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