Dmart, Trent among Bernstein's top picks of Indian consumer cos

Sapphire Foods India

28/08/2024 10:49

** Bernstein starts coverage of supermarkets operator Dmart
 AVEU.NS , fashion retailer Trent  TREN.NS , Jubilant FoodWorks
 JUBI.NS , Devyani International  DEVY.NS  with "Outperform" 
    ** Says Dmart has "clear value positioning"; Trent
benefiting from private label portfolio
    ** Dominos India franchisee Jubilant and KFC India operator
Devyani to see boost from revival in fast food demand, menu
innovation, expansion
    ** Consumers beyond the top 10% of income pyramid and
outside the top 40 cities to boost retail, restaurant sectors:
Bernstein
    ** Brokerage however rates fashion retailer Aditya Birla
Fashion & Retail  ADIA.NS  and McDonald's operator Westlife
Foodworld  WEST.NS  "Underperform"
    **  Rigid cost structure to weigh on WEST profitability; 
debt overhang and weak growth in legacy brands to hurt ADIA -
brokerage 
    ** Starts Pizza Hut operator Sapphire Foods  SAPI.NS  with
"Marketperform", citing high valuations     
    ** FMCG index  .NIFTYFMCG  is up 10.14% in 2024,
underperforming the 15.3% rise in Nifty 50  .NSEI  
    ** TREN up 6%, DEVY up 1.2% while AVEU is trading 0.2%
lower; ADIA, JUBI, WEST, SAPI down 0.3%-1.6% - Exchange data
 
   

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Bernstein initiates coverage of seven Indian stocks in retail,
restaurant segments    https://reut.rs/3ySMvNd
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 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))