Stocks to buy: ITC, Britannia, Dabur, Asian Paints among 8 FMCG stocks picks after Q3 results
Emami, Asian Paints, and Britannia Industries and expects bounce back in rural areas to influence performance for Dabur India and Bajaj Consumer Care positively. It has a ‘Buy’ rating on these FMCG stocks along with Godfrey Phillips India and VST Industries. Here are FMCG stocks to buy after Q3 results: Dabur’s Q3FY24 print was in-line with our estimates.
Management guided for operating margins to remain in ~19-20% band and savings from lower inflation would be invested back in ad-spends. Centrum Broking holds its earnings and retains a ‘Buy’ rating on the stock with a DCF-based target price of ₹613 per share, implying average 42.2x FY25E/FY26E EPS. ITC’s Q3FY24 print was below Centrum Broking’s estimates with revenue and PAT rising by 1.4% and 10.9% while EBITDA down by 3.7%.
The brokerage had argued that with strong operating leverage and improved product-mix, FMCG segment to deliver a 12.9% EBITDA margin (Mar’24). With lower 9MFY24 performance, it tweaked earnings and retained a ‘Buy’ rating with a revised DCF-based target price of ₹556 per share, implying 29.4 avg. FY25E/FY26E EPS.
Britannia Industries Q3FY24 print was below Centrum Broking’s estimates with consolidated revenue, EBITDA and net profit growing 1.4%, 0.4% and 0.3% YoY. The biscuit maker’s management said it will execute pricing action to remain competitive and reinvest accrued benefits in ad-spends and promotions. With stable EBITDA margin (19%) Britannia Industries aims to drive double digit volume growth and increase market share in focus states.
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