Retail Industry - Slow Recovery, Increase In Raw Material Costs Cast Shadow: Motilal Oswal 
A customer browses clothing displayed in the womenswear department of a Westside store operated by Trent Ltd., the retail unit of Tata Group, in Mumbai. (Photographer Kanishka Sonthalia/Bloomberg)

Retail Industry - Slow Recovery, Increase In Raw Material Costs Cast Shadow: Motilal Oswal 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

After steady recovery in sales in the festive season (in Q3 FY21), the retail industry is witnessing positive trends such as the resumption of store adds and improving working capital and leverage positions.

However, factors such as softness in recovery trends (given the rise in Covid-19 cases) and the risk of increasing raw material costs remain deterrents.

The recent correction does offer a better entry point in these stocks especially given their better competitive positions and balance sheets, and the potential growth in retail stocks.

Nevertheless, we believe the market exuberance may cool down until we see revival in revenues over the next six months.

Click on the attachment to read the full report:

Motilal Oswal Retail Sector Update.pdf

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