Global investment firm Bernstein has initiated coverage on seven key stocks in the Indian retail and restaurant sector, delivering a mixed outlook with four stocks rated as “Outperform” and two as “Underperform.”
The firm has given an “Outperform” rating to Avenue Supermarts (DMart) with a target price (TP) of Rs 6,300, Trent with a TP of Rs 8,100, Jubilant FoodWorks with a TP of Rs 800, and Devyani International with a TP of Rs 210. These companies are expected to benefit significantly from the expanding opportunities in India’s organized retail and restaurant markets.
On the other hand, Aditya Birla Fashion and Retail Ltd (ABFRL) and Westlife Foodworld Ltd have been rated as “Underperform” with target prices of Rs 270 and Rs 700, respectively. Sapphire Foods has been rated as “Market-Perform” with a target price of Rs 1,700.
Bernstein’s analysis highlights that for over two decades, both investors and companies have been anticipating the emergence and spending potential of India’s middle class. However, the firm suggests that this wait has been more about supply at the right value than a lack of demand. With organized retailers scaling up, Bernstein believes that there is an opportunity to unlock demand beyond the top 10% of the income pyramid and outside the top 40 cities, offering tremendous value creation opportunities that are accessible today without further delay.
