GST cuts transition, extended monsoon cloud Q2 sales for Indian consumer firms, brokerage says

Emami

07/10/2025 08:09

** Fast moving consumer goods demand remained steady in Q2 but GST cuts transition, extended monsoon led to a temporary slowdown, Elara Capital analysts say

** The recent GST cuts will likely boost consumer demand but firms saw transitory impact on volumes in the near-term as retailers cleared existing inventory at old prices, denting sales - Elara

** Elara's preferred picks are Marico MRCO.NS, Tata Consumer TACN.NS and Titan TITN.NS, on likely pricing gains in categories including coconut oil, tea and gold

** Expects Colgate COLG.NS, Emami EMAM.NS and Varun Beverages VARB.NS to post below-average volume growth due to unfavorable weather conditions, de-stocking due to GST cuts and hightened competition

** Adds, input prices for commodities were mixed in the quarter

COMPANY
RIC
ELARA CAPITAL RATING
Marico
MRCO.NS
Accumulate
Tata Consumer
TACN.NS
Accumulate
Titan Company
TITN.NS
Buy
Colgate-Palmolive India
COLG.NS
Reduce
Emami
EMAM.NS
Accumulate
Varun Beverages
VARB.NS
Accumulate

 (Reporting by Manvi Pant in Bengaluru)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))