BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Institutional Equities
Our discretionary universe is expected to nearly double sales YoY in Q1 FY23 as the companies get their first pandemic-free quarter (three-year revenue/Ebitda compound annual growth rates of 16/11% respectively). food and grocery, jewellery, paints, apparel, and footwear are expected to clock 19%, 25%, 15%, 8%, and 2% (three-year CAGRs). Ticket sizes in retail, though normalising, remain elevated vs. pre-Covid levels.
While profitability is recovering across categories, high commodity prices, restoration of rent/other selling, general and administrative overheads, and strong expansion-led expenses are likely to keep margins (excluding jewelry) below pre-pandemic levels.
We bake in a 330 basis points lower Ebitdam in Q1 FY23 (versus Q1 FY20). Store additions remain strong across retail categories. We build in 11% Ebitda CAGR for the universe.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
