Analyst's Pick: LARGE CAP : Motilal Oswal Securities
FMCG being a domestic demand driven sector, is expected to do well despite slowdown. Cos enjoy the pricing power due to strong presence of their respective brands in the market.
By ET Bureau |
FMCG being a domestic demand driven sector, is expected to do well despite slowdown. Cos enjoy the pricing power due to strong presence of their respective brands in the market and with lower raw material prices coupled with lower ad spends, they are expected to boost profit margins.
Larger cos with strong pricing power will do better while new ones will have high entry barriers. SundayET takes a peek into the recommendations of top brokerage houses.
LARGE CAP
Motilal Oswal Securities
ITC CMP: Rs 182
The 18% growth inQ3 PBIT has been encouraging. Growing demand and high entry barriers for other players will ensure steady double-digit profit growth. Poor performance from hotels business is already priced in. Market share of 2.5% in the toilet soaps & rising consumer acceptability in skin care is positive for the company.
Larger cos with strong pricing power will do better while new ones will have high entry barriers. SundayET takes a peek into the recommendations of top brokerage houses.
LARGE CAP
Motilal Oswal Securities
ITC CMP: Rs 182
The 18% growth inQ3 PBIT has been encouraging. Growing demand and high entry barriers for other players will ensure steady double-digit profit growth. Poor performance from hotels business is already priced in. Market share of 2.5% in the toilet soaps & rising consumer acceptability in skin care is positive for the company.
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