According to Axis Securities, the Q3 results of the FMCG (Fast-Moving Consumer Goods) and Retail sectors are expected to be driven by the urban recovery landscape. The brokerage firm has highlighted Trent and Doms as its top picks in this space.
Axis Securities believes that the urban areas will lead the recovery in the Q3FY22 results, with FMCG companies expected to report a better performance. The firm expects a recovery in discretionary spending, led by urban areas, to benefit companies with strong brand presence, distribution networks, and market share.
Trent, a popular fashion and lifestyle brand, is expected to benefit from the recovery in the urban areas. Its scalable business model, strong distribution network, and focus on brands like Zara, Mothercare, and thor, make it a top pick. Doms, a leading fast-moving consumer goods company, is also expected to perform well, driven by its strong brand presence, wide distribution network, and ability to adapt to changing market trends.
Overall, Axis Securities expects the FMCG and Retail sectors to show a gradual recovery in Q3FY22, with urban areas leading the way. The firm’s top picks, Trent and Doms, are expected to benefit from this trend.