To start, it is the Prime Minister’s GST Bonnza who has given a positive enthusiasm to the market. The GST cut is expected to consume about $ 13 billion, providing a strong tail to the FMCG area. The next step in the festive season is crucial and is likely to translate strong volume, better consumption and overall positive spirit. Considering its side action in the last two to three years, what is your on the FMCG area?
Sushant Bhansali: Compared to urban markets, Post-COV Video, Rural ReCOVERY procurement was slow, which was already performing well. In the last two to three years, FMCG growth was mainly urban-based, but rural admission is now improving. Combined with the expected GST cut around Diwali, this should accelerate the recovery procurement. The underperformance of the last two to three years can be translated into strong returns in the next 6-18 months.
What specific themes do you expect in consumption, including areas of previous underperforming?
Sushant Bhansali: It is a two-circular approach. First, rural-centered players with a strong distribution network are likely to perform well in this year’s H2. Second, customer discretionary segments, currently taxed on 28% GST, can benefit if the rate is widely estimated to be 18%. Additional growth levers should be provided in these areas.
In view of the GST announcement is not yet official, should investors now enter the market or wait?
Sushant Bhansali: It’s a good entry point. Investors can slightly prevent investments, but waiting results will not. Large-caps and mid-caps are at a reasonable level for a 1-2 year horizon, and for people with 3+ years of horizons, suitable at any time. Recent global uncertainties have provided attractive entrance points. With the interest rates, tax reductions and GST implementation of the Diwali and the wedding season, markets can see enthusiastic turnarounds and reach a new s.
You are positive on customer discreet, chief, auto toe, apparel, agrochemicals and customer durable people. But what about defense and shipbuilding, including the Mission Sudarshan Chakra, for the development of indigenous air defense system by 2035?
Sushant Bhansali: Defense remains a strong long -term bet, but short -term flow can be blocked. Affects indirect taxes with slow straight tax growth and GST rate adjustment, under pressure from the government’s financial pressure. As a result, short -term capex and investments in this sector may be limited. The long -term story, however, remains intact, and the side movement can continue until better entrance points come out.
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