5 short-term buy and sell ideas for 30 days from FMCG space by Morgan Stanley
Ahead of the Q1 earnings, Morgan Stanley has listed stocks to buy and sell from the FMCG space. The brokerage expects Tata Consumer Products and Dabur to see an increase in stock price in the near-term.
Global brokerage Morgan Stanley has listed out tactical picks for 30 days from the FMCG space for the short term. The brokerage is of the viewpoint that stocks including Hindustan Unilever, Britannia and Titan will see weakness in the near term, whereas price of Dabur and Tata Consumer Products (TCPL) will go up
Titan - Sell
The brokerage anticipates margins in the jewellery business to come in weak at 11 per cent in the June quarter. The stock is trading at a 22 per cent premium to its 10-year historical valuations.
Hindustan Unilever- Sell
The brokerage states the FMCG major is likely to see demand at par with the previous quarter. Furthermore, the company is estimated to log the lowest growth in revenue and profitability as against peers. Also, the company's management is seen to change its FY25 earnings growth target of 6 per cent. Besides, the brokerage says that the macro story favors cyclical rather than defensive stocks.
Britannia - Sell
The stock in the last 3 months has zoomed 12 per cent, on the other hand Nestle and Tata Consumer Products have remained absolutely flat. So in anticipation of likely weakness in Q1, the brokerage foresees selling pressure in the stock and hence a 'sell' call.
Tata Consumer Products Limited - Buy
The stock has risen only 1 per cent in last 3 months and is anticipated to climb on the back of good growth.
Dabur - Buy
The brokerage said that rural demand at the company is ahead of urban demand. Also, it expects good performance from other HPC or home and personal care players