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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Election 2014

REUTERS SHOWCASE

TCS Results

TCS Results

TCS net profit rises 51.5 percent, sees stronger sales growth.  Full Article | Quote 

Election 2014

Election 2014

Promises and more promises: India’s parties pitch their visions.  Full Article | Full Coverage 

India Markets

India Markets

Sensex slumps 207 points, at 2-1/2 week closing low.  Full Article 

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Bitcoin ATM

Bitcoin ATM

China gets first bitcoin ATM, skirting bank crackdown.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Reuters India Mobile

Reuters India Mobile

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