BQ Edge | Motilal Oswal’s Gautam Duggad On How To Pick Consumption Stocks

There’s a permanent shift in consumer behaviour, where consumers prefer large, trusted brands, Duggad says.

BQ Research @bqprime

19 May 2021, 8:02 AM IST

Crates of piggy banks. (Photographer: Billy H.C. Kwok/Bloomberg)

Consumer stocks aren’t cheap and will never be. But growth certainty in some less-penetrated pockets and stocks will give higher valuations in the future, according to Gautam Duggad, head of research at Motilal Oswal.

The Covid-19 pandemic has created a permanent shift in consumer behaviour, he said, where consumers prefer large, trusted brands, auguring well for such consumption stocks. Great earnings visibility, pricing power, healthy payouts and lower volatility make these companies strong, long-term compounders, he said in an interaction with BloombergQuint’s Niraj Shah.

Apart from Asian Paints Ltd., Duggad suggested six investment opportunities in this space.

Watch the interaction with Duggad here:

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BQ Edge | Motilal Oswal’s Gautam Duggad On How To Pick Consumption Stocks

There’s a permanent shift in consumer behaviour, where consumers prefer large, trusted brands, Duggad says.