Volume growth for pumps, premium fans and stabilisers in FY15 could be strong, if monsoons were to be weak (vs a much stronger monsoon last year). This should further aid margin expansion, as these products have higher margins. Lastly, dealers expect a pick-up in the realty sector in 2HFY15, which augurs well for LE companies, as new houses aid in a demand pick-up. V-Guard is our preferred pick in the sector.
V-Guard Stock Target is of Rs 530. Look into the Technical and BUY Accordingly.
