HSBC expects India's consumer staples to underperform in 2024; downgrades Nestle

Avenue Supermarts

15/12/2023 09:18

** Most Indian consumer staples makers could see lower
ratings and will likely underperform consumer discretionary
segment next year, HSBC says in a note
    ** The divergence between consumer staples' valuations and
earnings growth could deepen further in 2024, it adds
    ** Staples makers with pricing power could resist pressure
as competition in segments like paints, groceries rises - HSBC
    ** Brokerage upgrades Colgate-Palmolive India  COLG.NS  to
"buy" from "hold", but downgrades Nestle India  NEST.NS  to
"hold" from "buy" citing expensive valuations
    ** Identifies Asian Paints  ASPN.NS , Titan  TITN.NS , FSN
E-Commerce  FSNE.NS , and Avenue Supermarts  AVEU.NS  among top
picks in the sector
    ** Nifty FMCG index  .NIFTYFMCG  down 0.6%, with 10 of its
15 constituents declining; Nestle top loser on index

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))