Consumer Sector Check - Barley, Oil Prices Cooling Down; Sugar Prices Elevated: Nirmal Bang

Nirmal Bang Report

Decrease in Barley prices and subsequent stability are likely to drive gross margin for United Breweries Ltd. in H2 FY24.

Relative stability (on YoY basis) in wheat prices is expected to be beneficial for Britannia Industries Ltd. in the coming quarters.

Emami Ltd. is likely to be a key beneficiary of declining Mentha costs.

Our top picks: On a one-year forward basis, we continue to remain bullish on Gillette India Ltd. and Britannia Industries.

We are structurally positive on Tata Consumer Products Ltd., ITC Ltd., Westlife Foodworld Ltd., and Procter and Gamble Hygiene and Health Care Ltd.

Recently, we upgraded United Breweries to ‘Buy’ in our Q2 FY24 result update note, which was followed by a detailed company update note last month.

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