Thread by @Goldforestinves

Notes 📋from Edelweiss Reasearch Sector Report on HOME DECOR🧵

~Covid-19 has accelerated the growth of home décor industry by offering enormous growth opportunities—import substitution, increasing exports and focus on home improvement in the wake of WFH.
@nid_rockz

Home Decor:
~Even at most conservative estimates, industry is likely to clock a 12– 14% revenue CAGR over FY21–26 (versus 5–6% CAGR over FY16–21).
~Traction in the wood panel industry is apparent from numbers: EPS CAGR of 42% over FY21–24E versus a 32% CAGR for ceramic tiles

Strong Demand in Real estate:

The share of top developers in launches (6–26% across cities in CY11) surged to 28–78% in H1CY21.

Growth Drivers:

Structural Shifts in Home Decor:
~Industry transforming from a commodity to household brand
~Intensified focus on making products available too
~Product launches driving shift towards organised players
~Consolidation in real estate segment too is driving growth for brands

Wood Panel Segment: Mid-end plywood segment driving growth
~MDF threatening low-end segment; mid end segment still growing
~Dominating share of unorganised players: A big opportunity for shift
~MDF:Fastest-growing category in wood panel industry

Innoation is they KEY:
New product launches by leading players.

Focus on Asset light model:
~Players in the plywood space are outsourcing the work pertaining to their medium/low-end brands such as Ecotech, Sainik, Jansathi and Bharosa.

Outlook and valuation: Primed for re-rating

~The home décor industry at INR1tn as on FY21 is expected to double by FY26.
~We believe it is an emerging sector in India’s consumption story with a promising growth opportunity (12–14% CAGR) over the next 8–10 years

Earnings growth to drive re-rating

Diversification is the game:
Wood panel players entering into interesting growth phase

Key Risks:
1. Covid 19
2. Economy connection: The consumption trajectory of home décor sector are intrinsically linked to realty sector and economic growth of the country.
3. unorganised players

Finally a sectoral snapshot:

Which is your pick?

Greenpanel, Century, Greenlam look interesting to me.

Like RT if its helpful.