India's consumer staples to see strong Q4 on margin recovery - analysts

Emami

12/04/2023 09:05

** Brokerages Jefferies and BNP Paribas view strong Q4 for
Indian consumer sector as margins expected to recover on past
price hikes and cooling of raw material prices  
    ** After several qtrs of decline, core margins should remain
largely flattish Y/Y, notes Jefferies 
    ** Volume growth 10-20% for ITC Ltd  ITC.NS , Godrej
Consumer Products Ltd  GOCP.NS  and Varun Beverages  VARB.NS ,
7% for Hindustan Unilever Ltd  HLL.NS  - Jefferies
    ** Double-digit revenue growth estimated for HLL, Nestle
India  NEST.NS , Britannia Industries Ltd  BRIT.NS , GOCP, Varun
Beverages  VARB.NS , ITC and Tata Consumer Products Ltd
 TACN.NS 
    ** Dabur India Ltd  DABU.NS , Emami Ltd  EMAM.NS  and
Colgate-Palmolive (India) Ltd  COLG.NS  should see Y/Y core
profit decline on higher rural salience and limited recovery -
Jefferies 
    ** BNP Paribas says inflation continues to weigh on demand,
with no improvement in underlying consumption trends  
    ** "Rural growth sluggish while urban consumption softened,"
says BNPP retaining negative view on sector
    ** Double-digit sales growth for HLL, NEST, BRIT AND GOCP on
price hikes and new initiatives - BNP Paribas
    ** Brokerage excludes DABU and EMAM from double-digit core
profit growth view; says ITC, BRIT, EMAM preferred picks

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))