Be selective in Indian consumer goods: Goldman - Reuters India

Tweet Link this Share this Reuters Market Eye - India's consumer good sector is on track to deliver sales and operating profit at an average compound annual growth rate of 13 percent between 2011 to 2025, Goldman Sachs says in a note dated on Tuesday. Goldman says estimates... Email Print Track and analyse performance of all BSE sectoral indices and other global indices on a single page.   Full Coverage  Get stock quotes Track BSE Sensex Gold, silver, oil prices Updates on currency markets, exchange rates Set alerts for stocks Customers shop inside a HyperCity supermarket in Mumbai September 14, 2012. Credit: Reuters/Vivek Prakash/Files Tue Nov 20, 2012 2:16pm IST Reuters Market Eye - India's consumer good sector is on track to deliver sales and operating profit at an average compound annual growth rate of 13 percent between 2011 to 2025, Goldman Sachs says in a note dated on Tuesday. Goldman says estimates are based on assuming per capita consumption in India would reach the levels of China in 2025. Within consumer goods, Goldman says skin care, quick service restaurants and jewellery will exceed sector growth, while detergents, oral care and personal wash will lag. Goldman thus initiates coverage of Jubilant Foodworks (JUBI.NS), which operates the Domino's pizza chain in India, with a 'buy' rating and a 12-month target price of 1,704 rupees. The investment bank also maintains 'buy' ratings on cigarette maker ITC (ITC.NS) and personal care products maker Marico Ltd(MRCO.NS). But the bank initiates Asian Paints (ASPN.NS) with a 'neutral' rating and a target price of 3,732 rupees, saying the "high growth and returns" are already reflected in current valuations. Goldman maintains Hindustan Unilever (HLL.NS) and Nestle India (NEST.NS) with 'sell' ratings. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. via Business - Google News

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