ITC, HUL and Dabur among 11 stocks with buy view from brokerages post Q1 earnings
FMCG sector posted top-line growth, driven by a summer spike, although the general elections negatively impacted the sector. The outlook for H2 remains positive, as indicated by company commentaries. Revenue is expected to grow, supported by rural recoveries, according to multiple brokerages.
With sector rotations underway and defensives like FMCG gaining investor interest, stocks in this sector are expected to be in focus.
Following the April-June quarter results, top brokerages have taken a 'Buy' position on FMCG stocks. ETMarkets has compiled a list of 11 stocks to watch.
Here's what brokerages recommended:
ITC | Upside: up to Rs 16%
Several brokerages have recommended a buy view on ITC stock following the company's Q1 earnings, including Jefferies and Nuvama, which set the highest target price at Rs 585. This implies a 16% upside from Thursday's closing price of Rs 505 on the NSE. Despite the impact of a tough macro environment, most businesses are expected to see improvement ahead.
Other brokerages, including Motilal Oswal, JPMorgan, and ICICI Securities, have set target prices ranging from Rs 530 to Rs 575. Motilal Oswal and JPMorgan have taken a buy stance, while ICICI Securities has recommended an 'Add' with a target price of Rs 530.
Britannia Industries | Upside: up to Rs 8%
Local brokerage Nuvama has retained a buy rating on the stock, adjusting its target price to Rs 5,870 from Rs 5,940. Another brokerage, B&K, has set a target price of Rs 6,300, indicating up to an 8% potential upside from
