Stories
GST Boost Set to Lift Consumer Stocks: Elara's Karan Taurani Favours Nykaa, Trent, United Spirits
C
CNBC TV18•07-10-2026, 10:53
GST Boost Set to Lift Consumer Stocks: Elara's Karan Taurani Favours Nykaa, Trent, United Spirits
- •Discretionary consumption is expected to see a stronger Q3FY27 driven by delayed benefits from last year's GST cuts reaching apparel, footwear, and food categories.
- •Karan Taurani of Elara Capital remains positive on platform-led companies like Nykaa and Eternal due to strong growth prospects and the shift to online shopping.
- •Rising input costs such as fabric price hikes and food inflation remain key concerns that could keep earnings growth under check for many companies.
- •In the alcohol segment, spirits are positioned better than beer, making United Spirits, Tilaknagar Industries, and Allied Blenders and Distillers attractive near-term plays.
- •Trent is favored for the medium term as fast-fashion competition eases and growth is expected to improve once raw material inflation cools.
Key Questions Answered
Discretionary consumption could see a stronger October-December quarter of 2026 (Q3FY27) as the benefits of previous goods and services tax (GST) cuts reach smaller categories such as apparel, footwear, and food.
Spirits are considered better placed than beer due to lower exposure to glass costs, ongoing premiumization trends, and the opening up of new markets.
JPMorgan's outlook is supported by a double-digit P&A growth aspiration, product renovation initiatives like the McDowell's refresh, vodka innovation, tequila category creation, and potential upside from the UK FTA.
