Ambit Capital’s top calls in retail sector: Titan, PVR and more
Updated : 2020-07-03 13:51:54
The COVID-19 pandemic drives multiple uncertainties for the richly valued, high-fixed-cost, metro-centric retail sector, according to brokerage house Ambit Capital. Change in consumer behavior or priorities, lower credit availability and loss of jobs/income cuts would hit low-ticket discretionary category too. Over a longer period, industry consolidation will benefit stronger players though COVID could potentially wipe out next 2 years’ earnings growth, the brokerage said. The brokerage has 'Buy' rating on Titan, Jubilant, and Trent while it downgraded Aditya Birla Fashion and Retail, PVR, Relaxo, and DMart to 'Sell'.