CMP : Rs 2,198
Credit Suisse believes HUL is one of the key beneficiaries of the post-vaccine consumer behaviour normalisation through personal care and fabric care segments. The firm has an outperform rating on HUL with a target price of Rs 2,650 since the GST cuts give it a windfall that can drive volumes. HUL’s earnings visibility is anyway high due to the parent’s cost focus while the missing link to volume growth is coming back, said Credit Suisse.
CMP : Rs 16,899
Abneesh Roy, EVP-Institutional Equities at Edelweiss, said Nestle gets a reasonable chunk of sales from out of home consumption, offi ces that use its products. “With travel picking up and offices starting, milk powder, coffee, other discretionary product sales should pick up. Valuations are comfortable. Consumer stocks have not been in favour and have underperformed other sectors with money going towards high beta names after the Budget, but rural demand remains quite strong and consumer names like Nestle should benefit from the normalisation trend,” said Roy. Edelweiss has a target price of Rs 21,110 on the stock with a buy rating.
CMP : Rs 207
ITC is also being seen as a top beneficiary of the post-vaccine normalisation of consumer behaviour through a pick up in cigarettes business which is ITC’s bread and butter. “ITC’s cigarette business is trading at an implied P/E (price-to-earnings) multiple of 10 times, which is significantly below the top end of global tobacco valuations which are around 15 times… we see positive risk reward given ITC’s superior volume resilience, high market shares and ROIC,” said Credit Suisse which has an outperform rating on ITC with a target price of Rs 265.
CMP : Rs 1,409
A return in normalisation post vaccination could boost PVR. Analysts said multiplex stocks have moved up along with the market rally and PVR’s cash burn is a concern but a return to normalisation could increase interest in the stock. As social distancing measures ease, more than 50 per cent of PVR’s screens can now operate at 100 per cent occupancy and strong content (both Bollywood and regional movies) is lined up in the near-term, said UBS, maintaining its buy rating with a target price of Rs 1,800.
CMP : Rs 123
Motilal Oswal, which sees Indian Hotels’ stock touching Rs 143 in a year, said it expects a sharp recovery in FY22 on a low base, improvement in average room rates once things normalise, improved occupancies and increase in food and beverage income as banqueting and conferences resume.
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