india consumer (MorganStanley) F4Q11 - Margin Squeeze to Continue

Maintain Cautious industry view ahead of F4Q results; Operating profit margin for the sector (ex ITC) will likely compress by around 140bp, driven by steep input cost inflation, not fully offset by price increases or lower advertising expenses. We expect UNSP, ITC, and GCPL (GOCP.BO, Rs387, E) to report the strongest PAT growth for the quarter, whereas HUL, Dabur (DABU.BO, Rs103, E), and Colgate may disappoint; Overweight rating on Nestle (NEST.BO, Rs3,722), USL (UNSP.BO, Rs1,041), and Cox & Kings (COKI.BO, Rs428), and retain our Underweight on HUL (HLL.BO, Rs277) and Colgate (COLG.BO, Rs893)..
Date Rating Target Price Recommendation Price Broker house
18 Apr 2011 -- -- -- MorganStanley Report

No comments:

Post a Comment