Bernstein, a brokerage firm, has started coverage on seven retail and restaurant companies: Avenue Supermarts, Trent, Aditya Birla Fashion & Retail, Jubilant FoodWorks, Westlife Foodworld, Devyani International, and Sapphire Foods India. The firm gave an ‘outperform’ rating to Avenue Supermarts, Trent, Jubilant FoodWorks, and Devyani, while rating Aditya Birla and Westlife Foodworld as ‘underweight.’
Bernstein believes that as organized retailers expand, there are great opportunities to unlock demand beyond the top 40 cities and the wealthiest 10% of India’s middle-class market.
“We are more optimistic about retail compared to restaurants due to its larger share of unorganized players (90% vs. 60% for restaurants), better historical performance, higher percentage of own-brands (80% vs. 0% for restaurants), and lower valuations,” the analysts said in a note.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
