Weak Q4 retail, demand not bouncing back anytime soon - Nuvama

Sapphire Foods India

01/06/2023 08:29

** The retail sector's Q4 results saw broad-based weakness,
similar to the previous quarter, says analysts at Nuvama
Institutional Equities
    ** Demand not expected to come back in near term, given
structural issues like demand moderation, inflationary pressures
and muted income/job growth, Nuvama said in a note
    ** EBITDA was 4% below expectation with apparel retailers
like Aditya Birla Fashion and Retail  ADIA.NS , Trent  TREN.NS ,
and V-mart  VMAR.NS , and Page Industries  PAGE.NS  seeing the
highest miss - Nuvama
    ** Says apparel and innerwear players saw slowdown in growth
and impact on margins hurt by weaker demand and higher
advertisement cost
    ** Says jewellery, including Titan  TITN.NS  reported
in-line performance, with 13% margin - Nuvama
    ** Adds most QSRs saw slowdown in performance
    ** Top picks of Nuvama: TREN (traction in growth despite
subdued demand), TITN (massive market share opportunity ahead),
Sapphire Foods  SAPI.NS  (compelling valuations)
    
    

 (Reporting by Aleef Jahan in Bengaluru)
 ((aleefjahan.cs@thomsonreuters.com))