Be selective in Indian consumer goods: Goldman
Reuters Market Eye - India's consumer good sector is on track to deliver sales and operating profit at an average compound annual growth rate of 13 percent between 2011 to 2025, Goldman Sachs says in a note dated on Tuesday.
Goldman says estimates are based on assuming per capita consumption in India would reach the levels of China in 2025.
Within consumer goods, Goldman says skin care, quick service restaurants and jewellery will exceed sector growth, while detergents, oral care and personal wash will lag.
Goldman thus initiates coverage of Jubilant Foodworks (JUBI.NS), which operates the Domino's pizza chain in India, with a 'buy' rating and a 12-month target price of 1,704 rupees.
The investment bank also maintains 'buy' ratings on cigarette maker ITC (ITC.NS) and personal care products maker Marico Ltd(MRCO.NS).
But the bank initiates Asian Paints (ASPN.NS) with a 'neutral' rating and a target price of 3,732 rupees, saying the "high growth and returns" are already reflected in current valuations.
Goldman maintains Hindustan Unilever (HLL.NS) and Nestle India (NEST.NS) with 'sell' ratings.
- Tweet this
- Share this
- Digg this
- India withdraws regulator's power to cap non-essential drug prices
- U.S. Treasury moves against tax-avoidance 'inversion' deals
- India's Mars mission a step closer to success with engine test
- PM Modi to get rock star reception in New York
- U.S., backed by Arabs, launches first strikes on fighters in Syria
India has withdrawn the drug pricing authority's powers that allowed it to fix the prices of medicines not deemed essential, after its decision to impose price caps on more than 100 drugs in July triggered industry protests. Article