Consumer Sector Q3 Earnings Preview - Multiple Headwinds Provide Opportunity: Prabhudas Lilladher
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Prabhudas Lilladher Report
Consumption stocks have seen correction in past few months owing to twin impacts of-
slowdown in rural demand,
margin impact due to inflated raw material prices and
life time high valuations.
We expect QoQ margin recovery to set in from Q4 FY22 even as demand headwinds will stay for a while as third Covid-19 wave will be added negative to rural slowdown. We expect companies under our coverage universe to register revenue growth of 14.9% YoY.
However, given inflationary environment we expect Ebitda margins to decline by 270 basis points YoY leading to 1.5% decline in profit after tax.
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