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.
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.