2 hrs ago

Equirus Rates 13 Consumer Stocks Long Amid Rising Commodity Costs

Equirus Rates 13 Consumer Stocks Long Amid Rising Commodity Costs
Britannia, Tata Consumer, Marico: What should investors do as commodity inflation rise · businesstoday.in

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.

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

Sources

Related news