Best post-Covid consumer plays to look at now

Dabur India, Godrej Consumer Products, Hindustan Unilever and Emami are the best consumer plays post the Covid-19 pandemic, according to Credit Suisse. The brokerage said these companies are a play on both the themes of structural gains and cyclical recovery. “The companies that have strong presence in healthcare categories or have brands oriented towards health, need to make the right investments over the next few quarters to convert Covid-19 gains into sustainable long-term gains. The key players here are Dabur, HUL, Emami and GCPL, which have brands that can make permanent gains,” said Credit Suisse. Here’s why Credit Suisse is most bullish on these stocks.Dabur IndiaTarget Price: Rs 575New products in healthcare and personal care have potential in the medium term, even beyond Covid-19Dabur is making cultural changes within the company to be able to change gears in aggressiveness, risktaking, and agility Expect innovations from Dabur in Chyawanprash and honey category during September-February which is high season for these productsMaintain outperform, raised target multiple to factor in higher long- term growth in healthcare portfolioGodrej ConsumerTarget Price: Rs 830It is a play on turnaround in home insecticides, and recovery in personal care and Africa business It is moving towards becoming a broad-based home and personal care play Raise multiples to build in more sustained growthHand wash business scaling up stronglyEmamiTarget Price: Rs 460A play on surge in demand for healthcare products and recovery in personal care Expect mid to high single digit sales growth to sustainEmami is seizing healthcare opportunity with products on immunity building, ayurvedic products and germ protection productsRaised earnings estimates for FY21 by around 1% and for FY22 by 2%Hindustan UnileverTarget Price: Rs 2,500Personal care business will see a gradual recoverySoap business saw a turnaround, Lifebuoy brand has strong equity as health soapHealth food, drinks business likely to continue growth momentumCut FY21 earnings estimate by 2% on near-term margin headwinds, maintain outperform

from Economic Times https://bit.ly/3m0gTKa
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