Morgan Stanley has revised its stance on select consumer stocks, upgrading Marico to Overweight while downgrading Godrej Consumer Products to Equal-weight. The brokerage also upgraded Nestlé India to Equal-weight as part of its sector review.
Marico has been upgraded to Overweight with a revised target price of Rs 934 from Rs 788. Morgan Stanley said the upgrade reflects an improving business mix that could support stronger growth and profitability over the medium term.
In contrast, Godrej Consumer Products has been downgraded to Equal-weight, with the target price cut to Rs 1,159 from Rs 1,315. The brokerage noted risks to near-term consensus expectations for the company, which prompted the revision in rating.
Morgan Stanley added that its preference within the consumer sector remains companies that are building idiosyncratic growth vectors while balancing profitability. Nestlé India has also been upgraded to Equal-weight, with the target price raised to Rs 1,370 from Rs 1,010.
Disclaimer: The views and investment tips expressed above are those of the brokerage and do not represent the views of this publication. This article is for informational purposes only and does not constitute investment advice.