Nomura expects India consumer staples Q2 sales to rise 14%; Nestle to lead
BUZZ-Nomura expects India consumer staples Q2 sales to rise 14%; Nestle to lead ** Nomura expects Indian consumer staples companies' Q2 sales to rise 13.8% y-o-y
** Stable Q2 volume growth q-o-q and full effect of price hikes undertaken due to Middle East conflict will lead to higher pricing-driven growth, brokerage said
** Adds, gross margins likely to contract sequentially due to higher-cost inventory
** Brokerage sees strongest Q2 growth for Nestle India NEST.NS among consumer staples, while Lenskart Solutions LENS.NS expected to lead growth among discretionary companies
** Nomura's consumer staples top picks: Marico MRCO.NS, Tata Consumer Products TACN.NS and ITC ITC.NS
** Discretionary top picks: LENS, Titan TITN.NS and Allied Blenders and Distillers ALLE.NS
** Nifty FMCG index .NIFTYFMCG up 0.1%, broader consumption index .NIFTYCONS down 0.2% on Wednesday
** YTD, .NIFTYFMCG down 19.2%, .NIFTYCONS down 9.3%
(Reporting by Vivek Kumar M)
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Nomura expects India consumer staples Q2 sales to rise 14%; Nestle to lead