Abneesh Roy, Executive Director, Nuvama Institutional, says the food space is quite attractive and there we will prefer Bikaji because it is a pure-play foods company. Among larger companies, he also likes HUL and ITC. Food is an attractive category, but there are very diversified companies. A double-digit volume growth for Bikaji is seen in last many quarters and that is expected to continue. After the edible oil duty hike, in H2, most of the food companies are ..
While the first quarter was subdued, we did see some positive outlooks from a few QSR companies. What is happening in terms of a meaningful recovery, on ground zero?
Abneesh Roy: Gradual recovery will happen. That space has seen slowdown now almost for six quarters. The base has become favourable, but there is a lot of competition between the players and delivery seems to be doing better. So, delivery-focused players should do better. But urban consumption is ..
Even in the software industry, job addition has been slow. So, urban consumption is more challenging than rural. In FMCG, for example, we expect rural to grow faster than urban even in this quarter. That is why I would say within QSR, the demand trends are muted currently and it will be a gradual recovery and delivery-focused players will see a higher recovery. We are more positive on rural consumption in the broader consumption basket and that is why we prefer the staples companies a bit more t ..
I like to draw your attention to some specific categories and some of the specific categories, essentially the food category, which has become a very large category for ITC, HUL, and even for Britannia. That is one category which is definitely making a comeback. It is very sensitive to inflation. How do you see companies dominating the food category moving?
Abneesh Roy: The food space is quite attractive and there we will prefer Bikaji because it is a pure pl ..
We need to see if there is an impact on the margins, but we do not see much impact given this is an industry wide issue, so we like Britannia also in that space. We have been quite positive and have had a strong buy there. The stock has done well. We expect high single-digit volume growth for Britannia also to continue. Nestle, we see in the near-term slight underperformance given they are facing challenges in the Maggi portfolio because there is a consumption switch towards other forms of snack ..
Source Name : Economic Times