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.
Trending On Reuters
India's gold buying in the key December quarter is likely to fall to the lowest level in eight years, hurt by poor investment demand and back-to-back droughts that have slashed earnings for the country's millions of farmers. Full Article