ITC, Godrej Consumer, Akzo Nobel Among ICICI Securities' Top Picks In Consumer Staples & Discretionary Sector

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.ITC Cigarettes volume growth trajectory continues to be stable ~3% despite calibrated price hikes to navigate cost inflation and consumer demand being under pressure. ITC continues to benefit from market share gains for organised players from the illicit cigarettes industry due to:strong deterrent actions by enforcement agencies, leading to significant increase in seizures of illicit cigarettes; and stability in taxes on cigarettes. FMCG had a resilient performance while margins are under pressure due to commodity inflation..Godrej ConsumerDouble-digit volume growth across fast growing categories (air care, hair colour, liquid detergent, deodorants) while legacy portfolio of HI and Soaps have relatively underperformed. Household insecticide witnessed some improvement (mid-single digit volume growth) led by market share gains incense sticks segment and better seasonality while benefits of recently launched LV (with efficacious molecule) will take a couple of quarters to show results. Soaps volumes were under pressure though it continued to gain market share. That said, soaps portfolio will likely be under pressure due to-significant inflation in palm oil, andhigher relative competitive intensity with HUL being relatively less impacted due to their formulation change which makes them relatively less dependent on palm oil. This is likely to have material impact on margins of India business. Indonesia continued to perform grow well while (Godrej Africa, USA, and Middle East) profitability (mid-teens Ebitda margin) sustains..Akzo Nobel Akzo Nobel India Ltd.'s higher than (major) peer revenue growth indicates Akzo’s market share gain trajectory has continued in Q2 FY25. Strong demand tailwinds for the B2B market (than B2C market) indicate demand outlook may remain strong for Akzo. Value categories have relatively done well and may continue the growth traction as premium product launches have continued in Q2 FY25..Jyothy Labs Jyothy Laboratories Ltd.'s growth was underwhelming and underperformed peers. However, this was a blip in our view due to demand deceleration and floods in its core market (South contributes ~40% of revenues). Positively, it largely maintained its market share across categories and expects mid-to-high single digit growth in H2 FY25 (though marked down from double-digit growth trajectory). Management retained its margin guidance of 16-17% (versus 18.4% in H1 FY25) due to higher brand investments and likely pressure on gross margins due to commodity inflation..Click on the attachment to read the full report:.Election 2024 And Stock Market - NDA’s Victory To Lift Market Sentiment; Growth Pick-Up Crucial: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ITC, Godrej Consumer, Akzo Nobel Among ICICI Securities' Top Picks In Consumer Staples & Discretionary Sector

Here are all the top calls from ICICI Securities you need to know about to Buy this November.

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ITC, Godrej Consumer, Akzo Nobel Among ICICI Securities' Top Picks In Consumer Staples & Discretionary Sector

Here are all the top calls from ICICI Securities you need to know about to Buy this November.

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