AlcoBev, Hotel, Media, Retail, Telecom Q2 Preview - Risk-Reward Turning A Bit-Unfavorable: Dolat Capital
For Q2FY23 in our coverage sectors, we expect hotels to report the healthiest performance, followed by retail and telecom.
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Dolat Capital Report
Demand has been holding well despite inflation which is positive. Global geopolitical tensions played spoilsport exaggerating the already spiraling input costs.
Q2 FY23 to continue see the effects of this inflation with sharp erosion in margins, both on QoQ/YoY basis. For Q2 FY23 in our coverage sectors, we expect hotels to report the healthiest performance, followed by retail and telecom. Alcobev companies are expected to see a modest top-line, but subdued bottom-line due to high raw material prices. Media companies are likely to register struggle on both top-line and margins.
That said, inflation pressure and thus raw material prices seems to be peaking out. Most of the discretionary sector/stocks have done well in this backdrop viz. alcobev, hotels and retail in our space.
Telecom has been a defensive play. Media has underperformed led by company specific issues. In line with managements, we hope H2 FY23 shall see buoyant performance led by seasonality, festivity, buoyant demand and softening raw material prices.
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