India demand could improve after likely good winter-sown crop, Nirmal Bang says

Westlife Foodworld

12/03/2024 06:24

** Demand environment, barring chocolates, remains weak, but
could pick up post harvesting season in April with likely good
winter-sown crop - Nirmal Bang
    ** Brokerage remains positive on Britannia  BRIT.NS , Tata
Consumer Products  TACN.NS  and Gillette India  GILE.NS  among
staples 
    ** Among discretionary, it remains positive on United 
Breweries  UBBW.NS  and Westlife Foodworld  WEST.NS  
    ** Adds if there is no dry spell or further unseasonal rain
in next three weeks, price stability is likely as quality and
quantity of wheat and barley expected to be good; bodes well for
BRIT and UBBW
    ** After recent heavy investments by BRIT, next few years
could see higher topline growth once near-term inflation impact
on demand dissipates - Nirmal Bang 
    ** Expects ~13%/15.5% revenue/PAT CAGR for BRIT over
FY24-FY26; rates co 'buy' with target price of 5,910 rupees
    ** Adds positive on TACN over medium-to-long term over
improvement in margins, gradual recovery in volume growth in
foods and beverages businesses         

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))