7 Consumer Discretionary Stocks To Buy As Recommended By Sharekhan

Brokerage firm Sharekhan is betting on as many as 7 stocks from the consumer discretionary space, where it has a buy call on. Here are a list of 7 stocks that it has a buy call on in its latest report on the consumer discretionary space.

7 stocks that Sharekhan is bullish on

Stock	Current market price	Target price
Trent	1002	1275
Titan	2377	2900
Bata India	1822	2370
Relaxo Footwear	1242	1490
Indian Hotels	200	286
Wonderla Holidays	216	285
Arvind	121	183

Retail and hospitality

According to Sharekhan, higher festive demand boosted sales in the retail and hospitality sector.

"Strong festive demand in October-November 2021, improved footfalls, higher ticket size, revenge buying and stores operational for normal working hours (in most states) aided branded apparel, retail, and footwear companies to report strong sales performance in Q3FY2022. Retail companies such as ABFRL, Shoppers Stop, Trent Bata India, and Titan Company registered revenue growth of 30-85% in Q3FY2022. Jubilant Foodworks registered 12% growth with like-to-like sales growth of 8%, while Indian Hotel Company's sales doubled on a y-o-y basis due to strong improvement in occupancies especially in key tourist destinations. Higher operating leverage and sustained benefits of cost-saving measures led to higher EBIDTA on a y-o-y basis," the brokerage has said.

Quality discretionary stocks have corrected

According to Sharekhan, global political unrest, sharp increase in commodity prices, and uncertainty revolving around the pandemic led to substantial correction in domestic broader indices. Quality discretionary companies such as Titan, Trent, ABFRL, Bata India, and Jubilant Foodworks have corrected by 10-30% from its six months high, in line with correction in the broader indices.

"We prefer companies with good growth prospects, lean balance sheet, and attractive valuations. Titan, a quality jewellery play remains one of the top picks in the discretionary space, while Trent and ABFRL remain our better picks in the branded apparel space. In. the textile space, we like vertically integrated textile player such as KPR Mill and garment exporter such as SP Apparels. In the hospitality space, we continue to like Indian Hotels Company due to strong room inventory and improving fundamentals," the brokerage has said.

Disclaimer

Please note, investing in equities is risky. Neither the author, nor the brokerage firm nor Greynium Information Technologies would be responsible for any losses based on the above article. Markets now are highly volatile due to geo-political tensions and rising interest rates in the US. Therefore, caution is warranted at this stage.

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