7 consumer discretionary stocks to buy as recommended by Sharekhan

7 stocks Sharekhan is bullish on

Store Current market price Target price
Thirty 1002 1275
Titan 2377 2900
bata india 1822 2370
Casual Shoes 1242 1490
Indian hotels 200 286
Wonder Vacations 216 285
Arvind 121 183
Retail and Hospitality

Retail and Hospitality

According to Sharekhan, higher festive demand boosted sales in the retail and hospitality sector.

“Strong festive demand in October-November 2021, better footfall, higher ticket size, revenge shopping, and stores operating during regular business hours (in most states) helped apparel businesses, retail and branded footwear companies to record strong sales performance in Q3FY2022 Retail companies like ABFRL, Shoppers Stop, Trent Bata India and Titan Company reported 30-85% revenue growth in Q3 of fiscal 2022. Jubilant Foodworks grew 12% with comparable sales growth of 8%, while Indian Hotel Company sales doubled on a year-on-year basis due to a strong improvement in the rate occupancy, particularly in key tourist destinations Higher operating leverage and the lasting benefits of cost reduction measures have led to an increase entation of EBIDTA on an annual basis,” the brokerage firm said.

Quality discretionary stocks corrected

Quality discretionary stocks corrected

According to Sharekhan, the global political unrest, the sharp rise in commodity prices and the uncertainty surrounding the pandemic have led to a substantial correction in the broader national indices. Quality discretionary companies such as Titan, Trent, ABFRL, Bata India and Jubilant Foodworks have corrected 10-30% from their six-month high, in line with the correction in broader indices.

“We prefer companies with good growth prospects, lean balance sheets and attractive valuations. Titan, a quality jewelry game remains a top pick in the discretionary space, while Trent and ABFRL remain our top picks in the branded apparel space.In. In the apparel space, we continue to like vertically integrated textile players such as KPR Mill and apparel exporters such as SP Apparels.In the hotel space, we continue to like Indian Hotels Company due to its strong room inventory and improving fundamentals,” the brokerage said.

Warning

Warning

Beware, investing in stocks is risky. Neither the author nor the brokerage firm nor Greynium Information Technologies would be responsible for any losses based on the above article. Markets are now very volatile due to geopolitical tensions and rising interest rates in the United States. Caution is therefore called for at this stage.

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