HSBC expects India’s consumer sector to see a sustained recovery, supported by a favourable base, income tax cuts, and GST rate reductions. Factoring in these reforms, the brokerage has revised its earnings forecasts across consumer names.
HSBC upgraded Britannia to hold with a target price of ₹6,140 and Nestlé India to hold with a target price of ₹1,270, reflecting around a 5% increase in FY27 EPS estimates for both companies. Among its preferred picks, HSBC maintained a buy rating on Marico with a target price of ₹870 and on Godrej Consumer Products Ltd (GCPL) with a target price of ₹1,470.
The brokerage said easing cost pressures and GST-related benefits should aid margin recovery across the sector, while consumption demand is likely to improve with better rural and urban dynamics.
Disclaimer: The views and recommendations made in this article are those of HSBC. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
