Consumers Q3 Review: Britannia Industries, Godrej Consumer, Tata Consumer among top picks of Sharekhan
Britannia Industries, Godrej Consumer Products, Tata Consumer Products, Jyothy Labs, Heritage Foods, Mrs. Bectors Food and Varun Beverages are the top picks of Sharekhan post Q3 results The financial performance some companies stood out and Jyothy Laboratories, Radico Khaitan, Varun Beverages and Nestle India were among Leaders for Q3FY2024, as per Sharekhan Laggards for Q3FY2024 howver included Zydus Wellness, Hindustan Unilever and Bajaj Consumer Care as per them. Consumer companies saw impact of weak demand during the quarter impact their volumes and revenue growth while price cuts taken to support volumes further put pressure on topline growth.
The declining costs however did cushion the operating performance and earnings on companies during Q3. Also Read- Are PSU stocks riding a bubble? mixed results cast doubt on the rally The Consumer goods companies’ Q3FY2024 performance was weak with low-single digit revenue growth while higher margins led to double-digit net profit growth, said analysts at Sharekhan in their Q3 preview. Value growth for most companies under their coverage lagged volume growth as price cuts undertaken by companies led to lower realization growth.
13 companies out of 19 companies registered flat to singled digit revenue growth. With benign input prices, gross margins of most companies under their coverage universe remained high. This also aided in Operating margins expansion and double-digit net profit growth.
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