By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
PratapDarpanPratapDarpanPratapDarpan
  • Top News
  • India
  • Buisness
    • Market Insight
  • Entertainment
    • CELEBRITY TRENDS
  • World News
  • LifeStyle
  • Sports
  • Gujarat
  • Tech hub
  • E-paper
Reading: Consumer Stocks at Fair Valuations, ITC in 3 Stock Picks: Nomura
Share
Notification Show More
Font ResizerAa
Font ResizerAa
PratapDarpanPratapDarpan
  • Top News
  • India
  • Buisness
  • Entertainment
  • World News
  • LifeStyle
  • Sports
  • Gujarat
  • Tech hub
  • E-paper
Search
  • Top News
  • India
  • Buisness
    • Market Insight
  • Entertainment
    • CELEBRITY TRENDS
  • World News
  • LifeStyle
  • Sports
  • Gujarat
  • Tech hub
  • E-paper
Have an existing account? Sign In
Follow US
  • Contact Us
  • About Us
  • About Us
  • Privacy Policy
  • Privacy Policy
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
PratapDarpan > Blog > Market Insight > Consumer Stocks at Fair Valuations, ITC in 3 Stock Picks: Nomura
Market Insight

Consumer Stocks at Fair Valuations, ITC in 3 Stock Picks: Nomura

PratapDarpan
Last updated: 10 January 2025 11:28
PratapDarpan
6 months ago
Share
Consumer Stocks at Fair Valuations, ITC in 3 Stock Picks: Nomura
SHARE

After a sharp correction in consumer stocks, global brokerage firm Nomura believes these stocks are now at fair valuations as it named Marico, Hindustan Unilever (HUL) and ITC as its top picks in the sector.

Nomura paid Mariko Rs. 760, for HUL Rs. 3,100 and for ITC Rs. Has a ‘Buy’ rating on all three stocks with a target price of 575.

Preferring the bottom-up thesis, global brokerage firms expect these companies to expand into new categories/markets, with pricing power, and invest in digital capabilities.

Consumer stocks have rallied sharply in recent months due to lower-than-expected demand and continued declines in incomes. The sector is now trading at a 2-point dev above its five-year trading average.

“With India’s inflation likely to moderate and GDP to improve, we believe volume growth will improve marginally and price increases will improve value growth. We see risk-weighted sector valuations at a reasonable level and any easing from the administration on inflation and taxes/rebates to be supportive for the sector,” Nomura said in its report.

growfast

  • A Masterclass on Value Investing and Company Valuation

    Stock trading

    A Masterclass on Value Investing and Company Valuation

  • Market 104: Options Trading: Kickstart Your F&O Adventure

    Stock trading

    Market 104: Options Trading: Kickstart Your F&O Venture

    By – Saketh R, Founder- QuickAlpha, Full Time Options Trader

  • Technical Analysis for Everyone - Technical Analysis Course

    Stock trading

    Technical Analysis for Everyone – Technical Analysis Course

    By – Abhijit Paul, Head of Technical Research, Fund Manager- ICICI Securities

  • Stock markets made easy

    Stock trading

    Stock markets made easy

    By – elearnmarkets, Financial Education by StockEdge

  • Renko chart patterns made easy

    Stock trading

    Renko chart patterns made easy

    By – Kaushik Akiwatkar, Derivatives Trader and Investor

  • Market 101: Insights into Trendlines and Momentum

    Stock trading

    Market 101: Insights into Trendlines and Momentum

    By – Rohit Srivastava, Founder- Indianarts.com

  • Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading

    Stock trading

    Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading

    By – Rohit Srivastava, Founder- Indianarts.com

  • Dow theory simplified

    Stock trading

    Dow theory simplified

    By – Vishal Mehta, Independent Systematic Trader

  • Market 103: Mastering Trends with RMI and Techno-Funda Insights

    Stock trading

    Market 103: Mastering Trends with RMI and Techno-Funda Insights

    By – Rohit Srivastava, Founder- Indianarts.com

  • ROC Made Easy: A Master Course for the ROC Stock Indicator

    Stock trading

    ROC Made Easy: A Master Course for the ROC Stock Indicator

    By – Saurdeep Dey, Equity and Commodity Trader, Trainer

  • Hackin Ashi Trading Tricks: Master the Art of Trading

    Stock trading

    Hackin Ashi Trading Tricks: Master the Art of Trading

    By – Dinesh Nagpal, Full Time Trader, Ichimoku and Trading Psychology Expert

  • RSI Made Easy: RSI Trading Course

    Stock trading

    RSI Made Easy: RSI Trading Course

    By – Saurdeep Dey, Equity and Commodity Trader, Trainer

  • Introduction to Technical Analysis and Candlestick Theory

    Stock trading

    Introduction to Technical Analysis and Candlestick Theory

    By – Dinesh Nagpal, Full Time Trader, Ichimoku and Trading Psychology Expert

    Nomura further said that urban demand is expected to remain weak in the first half of 2025 due to a lack of recovery catalysts. However, a cyclical improvement is expected in the second half of the year.

    Overall, volume growth is expected to remain below the long-term average. Any measures taken by the administration to reduce inflation and boost disposable income, such as tax cuts or concessions, could potentially revive urban demand.

    Also Read: Adani Wilmar shares fall 9% as Adani Group plans to sell 20% stake through OFS

    Additionally, given the sharp inflation in raw material prices (palm oil, tea, coffee, cocoa etc.), companies have started raising prices, albeit at a lower rate than commodity inflation.

    “We believe companies will continue to raise product prices gradually to avoid any volume shock. This should support overall sales value growth in 2025F versus 2024 where companies cut prices for most of the year,” Mihir P. said Shah, an analyst at Nomura.

    The global brokerage firm also noted that sharp rise in raw material costs will reduce the competitive intensity of regional/unorganized players as they operate on thin margins and limited working capital, making them uncompetitive against organized players, who are better equipped. Maneuver and even recruit customers at such times.

    While current margins for most consumer firms are still below their pre-COVID levels, Nomura expects margin expansion to remain limited in 2025F as firms may avoid flexing strong pricing power given the weak consumer demand environment.

    Hence, most companies are expected to focus on volume growth and market share prioritizing margin expansion.

    Also Read: TCS shares rise 5% after Q3 profit rises 12%. Should you buy, sell or hold?

    (disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)

    (You can now subscribe to our ETMarkets WhatsApp channel)

    You Might Also Like

    FPIs have increased the tempo in the primary market despite continued selling in the secondary market
    Infosys, Wipro ADR decreases 3% after the accenture has increased the full year’s income forecast
    Private sector banks report pressure on profits in Q3 between Q.
    ICICI Bank Q4 Results: Net Profit 18% YO, NII Advances 11%
    The exchanger shares despite defeating revenue estimates. Infosys ADR decreases 3%
    Share This Article
    Facebook Email Print
    Previous Article Watch: American YouTuber breaks world record of drinking 2 liters of soda in seconds Watch: American YouTuber breaks world record of drinking 2 liters of soda in seconds
    Next Article Cluster of new mpox variant found in China: Know what it is? Cluster of new mpox variant found in China: Know what it is?
    Leave a Comment

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    about us

    We influence 20 million users and is the number one business and technology news network on the planet.

    Find Us on Socials

    © Foxiz News Network. Ruby Design Company. All Rights Reserved.
    Join Us!
    Subscribe to our newsletter and never miss our latest news, podcasts etc..

    Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

    Zero spam, Unsubscribe at any time.
    Go to mobile version
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?

    Not a member? Sign Up