Consumer Sector Q4 Results Preview - No Positive Surprises Due To Muted Demand: Prabhudas Lilladher

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.We estimate our coverage universe to report sales, Ebitda and profit after tax growth of 7.9%/6.9%/5.1% YoY on 20bps Ebitda margin contraction. Staples demand conditions remain tepid while rural recovery is happening at a slow pace. Quick service restaurant’s continue to face rising competition and downtrading in an inflationary environment, more so in dine in segment. Discretionary segments like eyewear, watches, footwear are no better with pressure on volumes. Paints continue to grow albeit at a slower pace. Staples are grappling with weak demand and rising competition from regional/smaller players. We expect low- to mid-single digit volume growth and little realization growth. FMCG spends are not reflecting the strength in GDP growth on account of shift in consumer wallet share and preferences..Demand across discretionary categories like QSR, footwear and retail remain under pressure. Same-store sales trends continued to remain weak despite low base. Paints witnessed a weaker than expected quarter amid rising competition while organized Jewellery players grew in wedding season even as higher gold prices impacted demand towards end of Q4..We believe current valuations in most consumer names offer little scope of re-rating given current context of single digit topline growth and elevated margins. We like Titan Company Ltd., Avenue Supermarts Ltd., Pidilite Industries Ltd., Westlife Foodworld Ltd., Nestle India Ltd. and Britannia Industries Ltd. structurally, however we would wait for better prices or time correction for a fresh entry. ITC Ltd. and Hindustan Unilever Ltd. offer a trade given correction in stock prices..Click on the attachment to read the full report:.Consumer Durables Q4 Results Preview - Southern India To Drive Cooling Products Growth: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Consumer Sector Q4 Results Preview - No Positive Surprises Due To Muted Demand: Prabhudas Lilladher

Rural demand and discretionary segments remain weak

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Consumer Sector Q4 Results Preview - No Positive Surprises Due To Muted Demand: Prabhudas Lilladher

Rural demand and discretionary segments remain weak

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