2 hrs ago
Equirus Rates 13 Consumer Stocks Long Amid Rising Commodity Costs
Equirus is a brokerage that studies companies and gives opinions about their shares.
It kept a positive LONG rating on 13 consumer companies.
However, some ingredients and packaging materials used by these companies have become more expensive.
Sugar, palm oil and menthol were among the commodities with the largest increases.
Higher costs can make it harder for companies to protect their profits.
Some other materials, such as crude-linked inputs and HDPE, became cheaper compared with the previous quarter.
Equirus said the benefit from lower raw-material costs is becoming less widespread.
Investors should note that the target prices and LONG ratings are the brokerage’s views, not a guarantee of returns.
Equirus retained LONG ratings on 13 consumer-focused stocks despite rising prices for several key commodities.
Sugar prices rose 19% year-on-year and 20% quarter-on-quarter, affecting biscuits, confectionery, malted beverages and soft-drink bottlers.
Palm oil prices increased 21% year-on-year, while menthol rose 33% year-on-year and 21% sequentially.
Crude prices fell 10% sequentially but remained 38% higher year-on-year; HDPE declined 18% sequentially while staying 30% higher year-on-year.
Equirus assigned target prices ranging from Rs 250 for Jyothy Labs to Rs 12,168 for Procter & Gamble Hygiene and Health Care.
- Who
- Equirus and 13 consumer-focused companies, including Britannia Industries, Tata Consumer Products and Marico.
- What
- Equirus maintained LONG ratings and issued target prices for 13 stocks amid increasing costs for several commodities.
- Where
- When
- Why
- Rising prices for sugar, palm oil, menthol and other inputs could pressure companies’ margins, while commodity movements are becoming more important for stock performance.
Key facts
- Brokerage
- Equirus
- Stocks covered
- 13 companies, all rated LONG
- Sugar price change
- Up 19% year-on-year and 20% quarter-on-quarter
- Palm oil price change
- Up 21% year-on-year
- Menthol price change
- Up 33% year-on-year and 21% sequentially
- Crude price change
- Down 10% sequentially but up 38% year-on-year
- HDPE price change
- Down 18% sequentially but up 30% year-on-year
- Highest listed target price
- Rs 12,168 for Procter & Gamble Hygiene and Health Care







