Positive on Titan, Abfrl; See Short-term competitive pressure for Paint Cos: Edelweiss Securities



Edelweiss Securities is positive on Titan, said Abneesh Roy, ED-Institutional Equities. He also mentioned that the festive demand looks good for Aditya Birla Fashion. He sees strong consumer trends for Godrej Consumer Products as well as Marico.

Abneesh Roy, ED-Institutional Equities, Edelweiss Securities, shared his take on some of the popular names as the holiday season got off to a flying start.

He said, “The house remains positive on Titan and expects market share for the stock. Plus, people like to spend on jewelry. Gold prices have also gone down and Titan continues to launch digital gold and is focusing a lot more on wedding jewelry, so always positive about it. “

“Festive demand also looks good. Gold import data was 8x in September and in recent months it has been very strong and Titan will experience strong growth even in the third quarter, ”he added.
Roy said, “The consumer trends are very strong, if you see Godrej Consumer, Marico, in most segments the growth has been decent. Festive demand is strong, according to all available data, so companies like Titan and Aditya Birla Mode (ABFRL), you will see a lot of pent-up demand especially for evening wear, because with the return of mobility and people returning to the office, they would really like to make their wardrobe complete again. So ABFRL looks really good from a party demand point of view.
At painting companies, he said they released a report on JSW Paints. He said: “JSW Paints ran newspaper ads about their differentiated positioning, saying that they will be offering paintings at a price, regardless of color. In addition, given the impact of margins linked to the price of crude, paint inventories could be under some pressure in the short term. Paint stocks are back very strongly and festive demand promises to be strong, so we are forecasting double-digit paint volumes. So don’t see more than a 4-5% drop in this type of business, as the market share will remain strong and it’s transitory in nature. “
At Retail business‘s with 7-Eleven convenience stores, Roy said: “This deal was something that was expected as the Reliance-Future deal was delayed and Future was unable to deliver on its commitment to the 7- Eleven. “

He added, “This format is interesting because if you see in India, over the past 15 years, a lot of players have tried the small box neighborhood convenience store format, but it has not been successful. There are challenges, but Reliance is obviously number one in the grocery retail business and they also want to be in the omni and other parts of the retail business, so for them that is really very. important. The brand is strong and I would say they really need to fine-tune the assortment based on consumption in India like more food and private label. So so far this format has not been successful but it is interesting.

For the full conversation, watch the video

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

(Edited by : Dipikka Gosh)

First publication: STI



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