Consumer Sector Check - Barley, Oil, Vegetable Prices Softening QoQ: Nirmal Bang

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Further month-on-month and QoQ decrease in Barley prices and no major increase in glass prices are likely to drive significant gross margin expansion for United Breweries Ltd. in Q4 FY24.Anticipation of a good wheat crop, if the current weather conditions sustain, will render relative stability (on YoY basis) in wheat prices. This, along with monthly and sequential decline in sugar prices (although elevated YoY), is expected to be beneficial for Britannia Industries Ltd. in the coming quarters.While there has been significant decline in wholesale price index tomato, potato and onion prices on both month-on-month and QoQ basis, these costs remain substantially elevated on a YoY basis, which is likely to have implications for quick service restaurant companies. .Our top picks: On a one-year forward basis, we continue to remain bullish on Gillette India Ltd. and Britannia Industries. We are structurally positive on Tata Consumer Products Ltd. On the discretionary side, we are optimistic on United Breweries Ltd. (which we upgraded to ‘Buy’ in our Q2 FY24 result update note followed by a detailed company update note in Nov-23) and Westlife Foodworld Ltd. (despite weak near term sentiments towards the QSR category)..Click on the attachment to read the full report:.Can Fin Homes - Poised For Stronger Performance: Yes Securities.DISCLAIMERThis 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.

Consumer Sector Check - Barley, Oil, Vegetable Prices Softening QoQ: Nirmal Bang

We are structurally positive on Tata Consumer Products Ltd. and on the discretionary side, we are optimistic on United Breweries Ltd.

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