FMCG Sector Check - With Multiple Tailwinds, Re-Rating On The Cards: Anand Rathi

Anand Rathi Report

Most fast moving consumer goods companies are up at least 10% post the election verdict, owing to their defensive nature and optimism around better prospects. A host of tailwinds – monsoon-led rural revival, post-election focus on social welfare and crude price-led margin buoyancy – augur well for the sector.

For the companies that we cover, we estimate 13% earnings compound annual growth rate over FY24-26, aided by gross-margin gains and demand recovery.

While valuations increased, we see upside potential for our preferred picks - Hindustan Unilever Ltd. (target price of Rs 3,000), Emami Ltd. (target price of Rs 730) and Zydus Wellness Ltd. (target price of Rs 2,150). United Breweries Ltd. (target price of Rs 2,300) is our pick in consumer discretionary

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.