look news india
Brokerage firm Bernstein has given buy ratings to the shares of seven companies in the retail and restaurant sector.
These include Avenue Supermarts, Trent, Aditya Birla Fashion & Retail, Jubilant Foodworks, Westlife Foodworld, Devyani International and Chefair Foods India. The brokerage firm has given outperform rating to Avenue Supermarts, Trent, Jubilant Foodworks and Devyani International and underweight rating to Aditya Birla and Westlife World.
Bernstein said, as the number of organized retailers continues to grow, tremendous opportunities for value creation are currently being realized. This position is determined by demand in cities other than the top 40 cities and in the top ten percent pyramid of the Indian middle class market. We are optimistic about both sectors. But we give more preference to the retail sector as the share of unorganized players in this sector is 90 percent while the share of restaurant players is 60 percent. Also, the historical performance of the retail sector has been more consistent. The share of the retail sector in the Oven brand portfolio is 80 percent, while restaurants have zero percent in this regard and due to soft valuations, we like the retail sector more.
