Retail sector's fall deepens in Q1FY24, says Nuvama; picks Titan, while cautions on Page Industries, Bata India
stock prices have fallen, it's important to spot the ones where the correction is only temporary and not structural. The domestic brokerage noted that Westlife once again posted the strongest Same Store Sales Growth (SSSG), but with a narrowing difference compared to peers, while Trent once again displayed exceptional growth. Titan experienced an unexpected margin shortfall.
Also Read: Rekha Jhunjhunwala portfolio stock touches 52-week high despite weak market sentiments Trent, Sapphire Foods, and Titan are the brokerage's top three recommendations in that order, while it is cautious of DMart, Page Industries, and Bata India. "This quarter, we downgraded Shoppers Stop (HOLD to REDUCE) and Metro Brands (BUY to HOLD) on expensive valuations. Our top picks are Trent (traction in growth despite subdued demand), Titan (massive market share opportunity ahead), and Sapphire Foods (compelling valuation).
We remain cautious on Avenue Supermarts (growth is normalising, putting valuation in question), Page Industries (stock valuation ahead of growth outlook) and Bata India (see limited revival in growth)," said the brokerage in its report. Also Read: GMM Pfaudler share price tanks 11% on reports of a block deal Let's look at the reasons cited by the brokerage for choosing the certain stocks as its top selections and for downgrading the stock. According to the brokerage's analysis, Titan experienced significant top line growth of 20% in the jewellery area (22% SSSG for Tanishq).
Similar to Kalyan Jewellers (not rated), standalone operations saw a 34% YoY rise. Titan's margins, however, missed due to increased advertising, a moderated gold price premium, and the gold exchange. Similar to previous quarters, the brokerage reported that
. Read more on livemint.com
