The article provides a preview of the Q4 results of consumer sector companies, highlighting the potential margin pressure that some of these companies may face. The first company mentioned is DRChoksey, which is expected to post a mixed bag of results, with revenue growth likely to be driven by its retail and food services business, but facing margin pressure due to higher raw material costs and supply chain disruptions.
The second company, Varun Beverages, is the top pick in the consumer sector, with a strong track record of organic growth and a robust balance sheet. The company is expected to report a strong set of Q4 results, driven by its expansion into new markets and the successful launch of new products.
The article also mentions other consumer sector companies, including biscuit major, Britannia Industries, which is expected to face margin pressure due to higher raw material costs and a strong rupee. The company’s Q4 results are likely to be affected by these factors, but the article notes that its dividend payout ratio remains high, providing some comfort to investors.
Another company, Rasoya Spices, is expected to report a mixed bag of results, with the company’s Q4 revenue growth driven by its strong performance in the spices segment, but facing margin pressure due to higher raw material costs and supply chain disruptions.
The article concludes by stating that investors should focus on the top line growth, margin stability, and dividend yield while making an investment decision in the consumer sector. It notes that while margin pressure is a concern, there are still opportunities in the sector, particularly for companies with strong brands and new product launches.
Overall, the article provides a balanced view of the consumer sector, highlighting both the challenges and opportunities that companies in this space face. It also provides a preview of the Q4 results of various consumer sector companies, including DRChoksey, Varun Beverages, Britannia Industries, and Rasoya Spices.