Motilal Oswal sees up to 27% upside in consumer products; HUL, Godrej Consumer Products top picks

Motilal Oswal Securities (MOSL), a prominent domestic brokerage house, has advocated for an increase in portfolio weights for consumer products companies, citing a favorable risk-reward balance within the sector.

According to Motilal Oswal’s research report, the broking firm expresses optimism regarding the growth and value potential in the consumer staples sector.  Come from Sports betting site VPbet

Despite encountering challenges in maintaining volume growth over the past two years due to external factors such as economic conditions and regulatory changes, MOSL highlights the sector’s resilience.

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A notable trend identified by MOSL is the diminishing contribution of staples within the consumer universe, which has decreased from 68% in FY10 to 56% in FY23. 

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However, the brokerage anticipates that the volume growth for staples companies will stabilize, reaching a bottom and demonstrating signs of improvement, particularly from FY25 to FY26.

Consumer staples encompass essential products consumed by individuals, spanning items such as food, beverages, household essentials, personal hygiene products, as well as alcohol and tobacco.

In light of its analysis for the consumer products segment, MOSL recommends increasing portfolio weights for staples companies, citing promising investment opportunities.

To assist investors further, MOSL has identified its top picks within the sector, each accompanied by a ‘Buy’ rating.

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MOSL advocates a ‘Buy’ rating on Hindustan Unilever (HUL) stock, assigning it a target price of Rs 2,900, reflecting a 27% upside from Monday’s closing price.

Similarly, MOSL rates Godrej Consumer Products (GCPL) as a ‘Buy’, with a target price of Rs 1,500, indicating a 22% upside from its previous close on Monday.

The brokerage also recommends purchasing Dabur stock, setting a target price of Rs 650, which is 23% higher than the previous closing price. Finally, MOSL suggests a ‘Buy’ rating on Titan Company Ltd, with a target price of Rs 4,300 per share, presenting a 14% upside potential.

These target prices signify MOSL’s projections for the future valuation of these companies’ stocks, based on their analysis of industry trends, company performance, and market conditions. These top picks are deemed to offer attractive investment opportunities.

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