MARKET EYE-Be selective in Indian consumer goods: Goldman

Tue Nov 20, 2012 1:54pm IST

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* 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
, 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 and personal care products maker Marico Ltd
.  
* But the bank initiates Asian Paints 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 and Nestle India
 with 'sell' ratings.


 (abhishek.vishnoi@thomsonreuters.com)
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