In the last few months, the shares of companies associated with the Consumer sector have seen a huge decline of 25% to 30%. This entire sector has been affected due to lethargy, margin pressure and increasing comment in demand. According to the Economic Times report, the demand in rural areas first weakened, and now there are signs of recession among urban customers.
Brokerage firm gave this information
Jefferies say that in the last few quarters, consumer companies have to face serious pressure related to growth and margin, which has reduced the value of shares. However, brokerage hopes that demand and margin can improve gradually, even if there are challenges like comment. Amidst the upheaval in the falling market and consumer sector, the global brokerage jefferies have bet on 3 such veteran companies whose shares have been badly broken in recent months. Brokerage believes that now these companies are in a position to emerge from below, and investors can get good returns in the coming 12 months. Brokerage has included Varun Beverages, Hindustan Unilever (HUL) and Asian Paints in the top 3 ‘Follen Angel’ of Jefferies amidst the selling of this selling.
These stocks get ‘Buy’ rating
Varun Beverages had to bear double hit, on the one hand this time the summer season was weak with hope, and on the other hand Reliance’s Campa Cola increased its presence in the market. This had to cut the company’s profit estimate of 9-10%. Jefferies have given this stock a ‘BUY’ rating and has fixed its new target price ₹ 560. Currently, this stock is trading on 27 times Ev/Ebita and 43 times P/E (June 2026 Basis), which is a good valuation in view of the current decline. Jefferies believe that in this era of decline, there is a great opportunity to invest in stocks like Varun Beverages.
This is the target price
The aggressive entry of Grasim’s Birla Opus has increased the pressure on Asian Paints, especially when the industry growth was slowing down and the change in the company’s management led to more uncertainty. The fluctuations in the prices of raw materials have made the situation and risky. Jefferies have upgraded Asian Paints from ‘underperform’ to ‘Buy’ and fixed the new target price ₹ 2,830. Brokerage hopes that FY26 will begin to improve earnings. Jefferies believe that Birla Opus will have an impact, but “benefits have already been found.”
FMCG veteran Hul’s stock has been almost flat for the last 5 years and the company has had to deal with many puzzles from weakness in demand to more competition. The growth trend of earnings has been weak and despite this, Jefferies have retained Hul’s ‘Buy’ rating and has fixed the target price of ₹ 2,950. Brokerage says that now the focus of the company has shifted from the margin to grow on growth, and the growing eye on India’s India can strengthen it.
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