Valuations et al.

Research evidence excerpt

Valuations et al.

Ltd 18.0% 13.4% -218bps -223bps

Tata Consumer Products Ltd 25.2% 20.1% -188bps -71bps

50- and 200-DMAs ( Exhibit 4 ). Dabur India Ltd 19.8% 9.7% -219bps -32bps

Godrej Consumer Products Ltd 26.6% 12.3% -702bps -161bps

Compared to their five-year trailing average valuation multiples, all stocks (barring MaricoVarun BeveragesLtd 24.0%20.6% 23.4%19.3% -287bps-22bps -48bps-68bps

Marico and Nestle, which saw relatively limited de-rating) under our coverage are QSR

Jubilant Foodworks Ltd 40.9% 13.3% -773bps -397bps

trading at discounts, with sharper de-rating seen across Paints, Jubilant, Trent, Dabur Paints

and DMart ( Exhibit 2 ). AsianBergerPaintsPaintsLtdIndia Ltd 20.4%11.3% 13.3%4.8% 147bps-78bps 121bps14bps

Kansai Nerolac Paints Ltd 3.7% 4.0% -139bps 42bps

In the past three months, Asian Paints, Dabur and Page saw the most consensus Discretionary & Retail

Avenue Supermarts Ltd 10.2% 9.2% 97bps 22bps

rating upgrades, while only Jubilant saw downgrade. Marico (MSe OW), Varun Titan Company Ltd 18.1% 15.4% -214bps -26bps

Beverages (MSe OW), Tata Consumer (MSe OW), Titan (MSe OW) and GCPL (MSe Fsn E-Commerce Ventures Ltd NA 13.7% 209bps 133bps

Page 26.4% 19.3% -495bps 20bps

EW) remain key consensus buy ideas, while DMart (MSe OW), Berger (MSe UW), Trent 30.3% 15.7% -329bps -30bps

Vedant Fashion NA 9.0% -197bps -42bps

Nykaa (MSe OW) and Page (MSe OW) remain key consensus sell ideas ( Exhibit 5 ).

Source: BSE, Morgan Stanley Research.

In QE-June 26, FPIs notably reduced their shareholdings YoY and QoQ across most

of our covered stocks, where only Asian Paints, Nykaa and DMart saw notable

increases in their holding. Over the last five years, JUBI, Trent, GCPL and Dabur saw

highest reduction in FPI shareholding. Currently, Marico (23%), Tata Consumer