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Consumer Staples Q4 Results Preview: Subdued Demand Persists; Margins To Improve, Says Systematix

The brokerage prefers Marico and Godrej Consumer Products in home and personal care, Tata Consumer and Britannia in foods, Berger Paints in paints and Dodla Dairy in small/ midcaps.

<div class="paragraphs"><p>Systematix believes margins can improve in coming quarters as the gap versus inflation narrows and operating leverage improves with some demand recovery. (photo Source: Soares / Unsplash)</p></div>
Systematix believes margins can improve in coming quarters as the gap versus inflation narrows and operating leverage improves with some demand recovery. (photo Source: Soares / Unsplash)
With valuations still lower versus historical long-period averages, but stocks recovering some ground over the past few weeks, the brokerage prefers stocks with pricing power in key categories, potential to gain market share from small/local players, and relatively better growth tailwinds in operating segments.
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