FMCG SECTOR
JPMORGAN ON CONSUMER STOCKS : 15.03.2022
• Resetting earnings lower on commodity headwinds
* Stay selective in a VUCA enviornment
• Risk-reward attractive in GCPL & Crompton Greaves
* D-Mart should benefit in an inflationary scenario
* Asian Paints & Pidilite to see the sharpest F23E EPS
CLSA ON CONSUMER : 09.03.2022
* CLSA remains cautious on the Indian consumer sector, says stocks like Asian Paints, Pidilite, HUL are most exposed to raw material prices benchmarked to global prices
* GSRs, Varun Bev Better Positioned; Marico, Britannia May Gain Share
* Asian Paints, Pidilite, HUL, Godrej Cons Most Exposed To Raw Material Volatility
• With Eased Raw Material Basket, Marico Is Better Positioned To Gain Share In Hair Oil
* Britannia Has An Opportunity To Gain Shr, May Benefit From Shift Away From 5 SKUS
* Remain Cautious On The Sector
* Prefer Stocks With Better Earnings Growth Longevity & Price-straddle Approach
JEFFERIES ON CONSUMER : 09.03.2022
* Inflation, sluggish rural demand may deter the Indian consumer industry from sharp price hikes, Jefferies believes
• Inflation, Sluggish Rural Demand May Deter Industry From Sharp Price Hikes
• Given The Sharp Volatility, We See Downside Risk To Our & Consensus Earnings Estimates
• Godrej Cons, HUL, & Colgate Remain Preferred Picks Into This Correction
JPMORGAN ON CONSUMER STAPLES : 22.02.2022
• Volume weakness and inflation challenges have reset the earnings
• Market share shifts remain favorable for larger players
• Cost inflation and rural demand remain key monitorables over next 3-6 months
• Preferred picks include Marico, Nestle, Godrej Consumer and United Breweries
• Britannia: Downgrade to Neutral from Overweight; Cut target price to Rs 3800 from Rs 4000
CS ON CONSUMER STAPLES - 13.01.2022
* High divergence in performance within the cons staples sector makes stock-picking critical, Credit Suisse says
* High Divergence In Performance Within Sector Makes Stock Picking Critical
* Continue With Godrej Cons, Dabur & Marico As Top Picks
• HUL's Growth & Margin May Improve As COVID Impact On Personal Care Categories Fades
CLSA ON CONSUMER STAPLES : 02.07.2021
* CLSA seeing sharp gross margin pressure on consumer staples in Q1 as cos have passed on 30-50% of inflation but adds that the easing of supply-strained commodity prices in H1 will be an apt setting to further drive market share & gross margin
* See Sharp Gross Margin Pressure In Q1 As Cos Have Passed On 30-50% Of Inflation
* Easing In Prices Of Supply-strained Commodities In H2 Is An Apt Setting To Drive Share
* HUL, In Our View, Is Well Placed To Capitalise From This Setting
* Marico Likely To Report Healthy Growth In Edible Oil, On A High Base
* On A High Volume Base, Britannia Effected Limited Price Action To Sustain Market Share