Consumer goods stocks face challenges: Deutsche

Thu Nov 22, 2012 2:28pm IST

Women shop for instant noodles at a retail supermarket in Mumbai March 16, 2012. REUTERS/Vivek Prakash/Files

Women shop for instant noodles at a retail supermarket in Mumbai March 16, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

Stocks

   

Reuters Market Eye - Deutsche Bank recommends being selective in Indian consumer goods stocks as high inflation and weak job creation may weigh on the sector, even as the broader growth outlook and investment arguments remain compelling.

Deutsche says it prefers companies with "multiple levers to manage growth," favouring those with strong pricing power, ability to expand distribution, and with a track record of innovation to maneuver a potential slowdown.

As a result, the investment bank recommends ITC (ITC.NS) , Marico (MRCO.NS) and Titan Industries (TITN.NS) as its top 'buy' stocks in the consumer goods space.

However, Deutsche downgrades Nestle India (NEST.NS) to 'sell' from 'hold', citing a combination of market slowdown and "missteps" by management.

Deutsche also downgrades Dabur India to 'sell' from 'hold', citing expectations for poor volume and earnings growth.

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Republic Day

Reuters Showcase

Banking Revolution

Banking Revolution

India turns to corner shops, mobile phones for banking revolution.  Full Article 

Nuclear Group

Nuclear Group

China urges India to take steps to satisfy standards of NSG  Full Article 

Gold Market

Gold Market

Chinese gold demand holds up ahead of holiday, Indian buying weak  Full Article 

India-U.S. Relations

India-U.S. Relations

Column - U.S. and India should join to balance China's rise  Full Article 

Nuclear Deal

Nuclear Deal

Obama reveals nuclear breakthrough on landmark India trip  Full Article 

Australian Open

Australian Open

Serena avenges French Open loss to reach quarter-finals.  Full Article 

Miss Universe

Miss Universe

Miss Colombia is crowned Miss Universe for 2015.  Full Article 

SAG Awards

SAG Awards

'Birdman' wins top honor from actors in march toward Oscars.  Full Article 

Climate Change

Climate Change

U.S.-China climate deal does not put pressure on India, says Modi  Full Article 

Reuters India Mobile

Reuters India Mobile

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