JM Financial backs discretionary over FMCG; jewellery, footwear top Q3 picks
JM Financial's Gaurav Jogani expects consumer discretionary to outperform in Q3, led by jewellery, casual footwear and grocery. Trent stays a strong bet, Metro Brands and Campus Activewear seen recovering, while QSR remains pressured amid GST and demand shifts.
What happened
JM Financial's Gaurav Jogani expects consumer discretionary to outperform in Q3, with jewellery, casual footwear and grocery as top picks. Trent stays strong;
Key facts
- Q2 discretionary growth 17-18%
- FMCG high single-digit growth
Why this matters
Recovering footwear names like Metro Brands and Campus Activewear and a pressured QSR segment signal potential M&A and partnership openings as the discretionary-versus-FMCG growth gap widens.
What to watch
- Q3 SSSG and revenue prints for Trent, Titan, Metro Brands, Campus Activewear
- Gold price trajectory and impact on jewellery volume vs value growth
- FMCG volume commentary (HUL, Nestle) for confirmation of staples weakness
- GST rationalization news flow and QSR margin/demand updates
- Wedding-season and festive footfall data
- Other brokerages likely to echo discretionary-over-FMCG tilt into Q3 results season
- Institutional rotation into jewellery and apparel retail; trimming staples exposure
- Trent retains premium valuation; Metro Brands and Campus flagged as recovery/turnaround bets
- QSR names (Jubilant, Devyani, Sapphire) face continued estimate cuts on GST/demand