Sensex scaled new heights in the year 2017 and touched an all time high of 34000. The markets rallied due to surge in liquidity and ample buying by FPIs and DIIs. Almost all sectoral indices of the BSE gained. Out of the 20 BSE sector indices, 19 have gained and 1 remain unchanged between 2 Jan 2017 and 27 Dec 2017. BSE Consumer Durables gained the most and is likely to close the year by over 96 per cent returns. Let us look at the stocks of the BSE Consumer Durables Index that gave the highest returns in 2017:
VIP Industries: Engaged in the manufacture of luggages, the company's product range includes trolleys, rucksacks, backpacks, duffel bags, laptop bags, travel accessories, short haul essentials, soft uprights, vanity cases, hard suitcases, briefcases and uprights. In Q2FY18, the company's sales growth and operating margins improved due to increased luggage penetration in the country. Moreover, substantial reduction in interest and depreciation costs helped the bottom line that grew by 27.4 per cent in Q2FY18. Country's economic expansion with improvement in purchasing power, increasing leisure, business related travel and desire to use branded luggage will drive the company's growth in future. The stock outperformed the BSE consumer durables index by over 2 times in 2017. Between 2 Jan 2017 and 27 Dec 2017, the stock delivered 194.8 per cent returns compared to BSE consumer durables that delivered 96.9 per cent.
Titan Company: The company is a joint venture between the TATA Group and the Tamil Nadu Industrial Development Corporation and commenced operations in 1984. It serves in the lifestyle space with presence across India and in 32 countries around the world. Its business segments include jewellery, accessories, and eyewear. In the recent years, the company has explored the fragrances market and is experimenting with Indian ethnic wear by introducing branded sarees. In Sep'17 quarter, the sales revenue and net profit grew by 28 per cent and 67 per cent respectively. Growth was mainly driven by the robust performance of jewellery, which rose 36.9 per cent YoY. Watches and eyewear segments grew by 9 per cent and 3.5 per cent, respectively. The company's aggressive foray into the wedding segment would be the key revenue driver going forward. This year, the stock outperformed the BSE consumer durables index by 1.6 times. Between 2 Jan 2017 and 27 Dec 2017, the stock delivered 155.3 per cent returns compared to BSE consumer durables index that delivered 96.9 per cent.
PC Jeweller: The company is engaged in the business of manufacture, retail and export of jewellery. It offers a range of products including 100 per cent hallmarked gold jewellery, certified diamond jewellery and other jewellery. With government's initiatives, aimed at protecting customers and clamping down on black money, the industry is witnessing a shift towards the organized segment. The company managed revenue CAGR of 26.5 per cent between FY11 to FY17 due to superior gold hedging policies compared to unorganized players, dedicated focus on Wedding Jewellery and expansion of significant number of stores. The stock outperformed the BSE consumer durable index by over 1.3 times this year. Between 2 Jan 2017 and 27 Dec 2017, the stock delivered 131.3 per cent returns compared to BSE consumer durables that delivered 96.9 per cent.
Bajaj Electricals: The business is spread across - Consumer Products (Appliances, Fans, Lighting), Exports, Luminaires and EPC (Illumination, Transmission Towers and Power Distribution). It also has a presence in the high-end range of appliances with brands like Platini and Morphy Richards. In September 2017 (Q2FY18), the company witnessed decline in sales revenue by 6.8 per cent year on year. Inability to raise prices amid a higher GST rate and slow execution of orders impacted the sales in Q2FY18. Going forward, rising consumer incomes and strong order book are likely to drive growth. Moreover, secondary sales will help the company to gain market share in the coming quarters. The stock outperformed BSE Consumer Durables Index by over 1.2 times this year. Between 2 Jan 2017 and 27 Dec 2017, the stock returned 120.5 per cent returns compared to BSE Consumer Durables index that delivered 96.9 per cent.