Be selective in Indian consumer goods: Goldman

Tue Nov 20, 2012 2:57pm IST

Customers shop inside a HyperCity supermarket in Mumbai September 14, 2012. REUTERS/Vivek Prakash/Files

Customers shop inside a HyperCity supermarket in Mumbai September 14, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Stocks

   

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.

FILED UNDER:

Fast-tracking Projects

REUTERS SHOWCASE

Oil Prices

Oil Prices

Oil resumes slide after brief rebound on short-covering.  Full Article 

Space Programme

Space Programme

ISRO tests its heaviest space launch vehicle, eyes global market   Full Article 

Coal India Strike

Coal India Strike

Coal India workers threaten five-day strike, stokes output worries  Full Article 

Gold Discount

Gold Discount

Dealers offer gold discount for first time in five months  Full Article 

Lakhvi Granted Bail

Lakhvi Granted Bail

Pakistan court bails man accused of masterminding Mumbai attack  Full Article 

GST Bill

GST Bill

Cabinet clears bill for nationwide goods and services tax.  Full Article 

Aviation Sector

Aviation Sector

Breakingviews: SpiceJet rescue is no fix for India aviation woes.  Full Article 

Global Economy

Global Economy

Fed confident on U.S. growth, opens door wider to rate hike.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage