MARKET EYE-Indian consumer goods stocks face challenges-Deutsche

Thu Nov 22, 2012 1:51pm IST

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A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

* 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,
Marico and Titan Industries as its top 'buy'
stocks in the consumer goods space. 
* However, Deutsche downgrades Nestle India 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.

 (abhishek.vishnoi@thomsonreuters.com /;
abhishek.vishnoi.reuters.com@reuters.net)
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