Consumption, cement and tourism in focus: Sameer Dalal sees value beyond market volatility

After recent market corrections and major macro events such as the India-US and India-EU trade deals and Union Budget announcements, investors are now searching for the next opportunity. According to Sameer Dalal, Owner of Natverlal & Sons Stockbrokers, the answer lies beyond headline-driven trades and into domestic-facing sectors.

Speaking to ET Now, Dalal said investors should shift focus from short-term noise and look for structural growth stories in consumption, cement and select discretionary plays.

Consumption story gaining momentum

Dalal believes India’s discretionary consumption cycle is seeing an uptick.


He cited strong topline growth at companies such as:

• Jubilant FoodWorks Ltd
• Trent Ltd
• Westlife Foodworld Ltd

Sequential improvement in demand trends, especially in January, signals a pickup in consumer spending. With recent tax relief measures and GST adjustments leaving more disposable income in the hands of the middle class, Dalal expects discretionary demand to strengthen further.

Hotels and tourism: A rerating story?

The tourism and hospitality sector is another key theme.

Dalal remains positive on:

• Indian Hotels Company Ltd
• Lemon Tree Hotels Ltd

He highlighted rising occupancy rates, strong travel demand and limited supply of quality hotel rooms in India. As average room rates (ARRs) and occupancies rise, operating leverage kicks in because incremental revenue carries limited additional cost.

Additionally, asset-light expansion through management contracts and joint ventures is improving return ratios, potentially triggering a valuation rerating.

Cement: The forgotten opportunity

Dalal also flagged the cement sector as an overlooked opportunity.

With government infrastructure spending expected to grow 11–12% annually, and strong real estate pre-sales translating into future construction activity, cement demand could see sustained double-digit growth.

Despite current lower capacity utilisation, operating leverage could significantly boost profitability as volumes pick up.

“Focus on domestic-facing businesses,” Dalal emphasised.

QSR and retail: Same-store growth key

Within consumption, Dalal is especially bullish on the QSR segment after two years of weak same-store sales growth (SSSG). If SSSG returns to historical levels while store expansions continue, profitability could jump sharply.

Retail expansion remains another strong theme. For instance, Trent operates over 300 Westside stores and more than 800 Zudio outlets. If topline growth accelerates to 22–23%, earnings momentum could surprise positively.

Beauty and FMCG: Selective approach needed

In the beauty and personal care segment:

• Nykaa has delivered strong results but trades at elevated valuations.
• Honasa Consumer Ltd is seen more as an FMCG play, where Dalal remains relatively cautious.

Stock selection, he said, will be critical given stretched multiples in some pockets.

Market outlook: Fewer triggers, more stock picking

With major macro events largely behind and earnings season wrapping up, Dalal expects markets to enter a consolidation phase. The only major overhang he flagged is geopolitical risk from the Iran conflict.

In this lull, investors are likely to shift focus toward growth visibility and value opportunities rather than event-driven trades.

His key takeaway: domestic consumption, tourism, cement and auto ancillaries offer better risk-reward compared to chasing crowded themes.

For the next one to two years, Dalal believes India’s consumption revival story could be the most compelling place to invest.

Disclaimer: The views expressed are those of the expert and do not constitute investment advice.