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
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- Japan, India vow to boost strategic ties during summit
- Federer marches on as wild weather, upsets hit U.S. Open
- Government urges court to leave some coal blocks with companies
- Dozens arrested at Made in America music festival in Los Angeles
The Nifty surged past the psychologically important 8,000 level for the first time to mark its latest record high as blue-chips such as Larsen & Toubro gained after better than expected quarterly economic growth data. Read
Government urges Supreme Court to not cancel some 'illegal' coal mines Full Article