Morgan Stanley has released its latest outlook on India’s consumer discretionary sector, highlighting a largely localised supply chain and demand base, and expressing preference for businesses with strong moats as well as disruptors and self-help stories.
As part of its stock-specific calls, the brokerage downgraded Vedanta Fashion to ‘Equal-weight’ from ‘Overweight’ and slashed the target price to ₹850 per share, citing near-term concerns on growth visibility and margin pressures.
In contrast, it upgraded Aditya Birla Fashion & Retail (ABFRL) to ‘Equal-weight’ from ‘Underweight’, with a target price of ₹269 per share, as valuation concerns ease and business restructuring gains traction.
Morgan Stanley continues to back market leaders like Titan and Vishal Mega Mart, stating that these companies are well-positioned to sustain growth amid demand normalisation. It also reiterated confidence in disruptors and self-help stories like Trent and Jubilant FoodWorks, which have consistently delivered on innovation and operational execution.
The brokerage’s broader view suggests that discretionary consumption in India remains resilient and is driven by domestic demand dynamics, despite global economic headwinds.
Disclaimer: The above view is based on Morgan Stanley’s research note and is not that of the author or publication. Investors are advised to consult a certified financial advisor before making investment decisions.
