Asian Paints, HUL, Varun Bev rise on Jefferies' contrary bet call

Asian Paints

09/07/2025 05:50

** India's Asian Paints ASPN.NS up 1.4%, Varun Beverages VARB.NS and Hindustan Unilever (HUL) HLL.NS rise 1.8% and 1.2% respectively

** These stocks are Jefferies' "contrarian" picks in India's consumer sector as it sees limited ability for these to lose ground further

** Jefferies says valuations attractive for Pepsi PEP.O-bottler VARB while weak summers, rising competition from Reliance's Campa Cola key risks

** Flags weak earnings trend for HLL, but says recent trend of prioritising growth over earnings, Unilever's ULVR.L focus on India should set stage for recovery

** Jefferies retains buy on HLL when atleast seven brokerages have downgraded the stock in the past two months

** ASPN has been grappling with intensifying competition from new entrant Birla Opus, reduced retail spending and switch to cheaper labels

** Jefferies says easy gains are captured by Birla Opus, expects gradual earnings recovery for ASPN in FY26, double upgrades stock to "buy"

** Avg ratings: VARB, HLL - "buy", ASPN - "sell" - data compiled by LSEG

** YTD VARB down 27%, HLL and ASPN up ~4% and ~11% respectively

 (Reporting by Hritam Mukherjee in Bengaluru)

 ((Hritam.Mukherjee@thomsonreuters.com;))