Consumer goods stocks face challenges: Deutsche
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.
- Tweet this
- Share this
- Digg this
Trending On Reuters
Monetary Policy Committee
Having agreed this week to formally adopt inflation targeting as a guiding star for monetary policy, India's government and central bank remain at odds over how crucial decisions are made. Full Article
PM Modi to ramp up help for Indian Ocean nations to counter China influence Full Article