Consumer Sector Q3 Preview - Challenges Persist Due To Raw Material Inflation, Subdued Demand: DRChoksey

The brokerage remains positive on Varun Beverages due to international expansion, BevCo integration, and operational efficiencies.

Deven Choksey Research

09 Jan 2025, 06:47 PM IST i

<div class="paragraphs"><p>Consumption trends in Q3 FY25 were mixed, with staple companies expected to report a muted quarter due to sluggish urban demand, weak winter portfolio sales, and the impact of high palm oil prices on the personal-wash segment. (Source: Soares / Unsplash)</p></div>

Consumption trends in Q3 FY25 were mixed, with staple companies expected to report a muted quarter due to sluggish urban demand, weak winter portfolio sales, and the impact of high palm oil prices on the personal-wash segment. (Source: Soares / Unsplash)

The brokerages expects a gradual recovery from Q4 FY25E, fueled by robust rural recovery driven by a favorable monsoon, healthy crop yields, welfare initiatives, and increased rural development spending. Urban recovery is expected in the medium term as hyperinflation in key areas such as food, rent, and medical eases, restoring consumer demand to normal levels.