HomeMarket NewsStocks NewsDipen Sheth very upbeat on consumption story; bullish on HUL, ITC, Marico, Hero MotoCorp

Dipen Sheth very upbeat on consumption story; bullish on HUL, ITC, Marico, Hero MotoCorp

Profile image

By CNBC-TV18 May 17, 2018, 11:11:37 AM IST (Published)

Dipen Sheth very upbeat on consumption story; bullish on HUL, ITC, Marico, Hero MotoCorp
Dipen Sheth, Head-Institutional Research, HDFC Securities, is of the view that serious investors should not focus on short-term events like politics and its impact on market, but look at the long-term of over five to ten years.


Currently, things that genuinely matter to the market are deteriorating macros, like higher crude prices, weakening currency and ballooning twin deficits. Meanwhile, the macros are improving, which is visible in earnings growth, he said.

Talking on sector/stock specific, he said the house is very upbeat on most of the consumption stocks that is ITC, Marico, Dabur and have a buy on Hindustan Unilever Ltd (HUL).

According to him, HUL has the most broad and diversified products portfolio in the country, "HUL rides the ups and downs on consumption much sharper than ITC.”

ITC is big bellwether value stock, while other fast-moving consumer goods (FMCG) companies are growth stocks, he said. ITC has shown strong resilience despite challenging tax norms.

Being constructive on consumer durables space, he said, "Havells has a fabulous distribution network, while Crompton Consumer has premium fans. Symphony dominates the air cooler space. So, there are specific stories that are playing out for each of these companies."

Expect Havells to become the HUL of durable space and will see good margin expansion.  Consumer durables is a space to be in from a 10-year perspective, he said.

With regards to non-banking finance companies (NBFCs), he said, "Here on the way to spot winners in the lending or credit opportunity in India is to figure out who is good at what part of the game. From the space, the house is positive on Chola Finance."

He also like Hero MotoCorp because it ties in well with the rural consumption story.