Cleanest GST beneficiary
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Britannia Industries | Held | 45.55 | 49.61% | 1.19 L Cr | Cleanest GST beneficiary | |
| Nestle India | Not held | n/a | n/a | n/a | Nestle trades at 72.7x trailing PE vs Britannia 46.6x for a similar GST-2.0 beneficiary profile (67% vs 80% of portfolio); Nestle's Jun-26 sales jump (~25%) is partly base/pricing driven and its 0.9% yield is half Britannia's 1.8%. | Screener · Tijori |
| Marico | Not held | n/a | n/a | n/a | Marico at 56.2x PE with Q1FY27 sales +50% driven mainly by copra/coconut-oil price pass-through (3-yr sales CAGR 12%); its margin is under pressure from commodity inflation whereas Britannia's input basket (wheat, sugar, palm) is more diversified and its ROE (56%) exceeds Marico's 43%. | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
Nestlé India is a superb business at 60x+ with the least GST benefit and the slowest volume growth of the group; ITC is cigarettes-led (we specifically exclude cigarettes from the volume thesis) and now a hotels demerger story; Dabur and Godrej Consumer have weaker execution and portfolio issues (honey/chyawanprash seasonality; GCPL's African drag). Marico is a copra-cost story, not a volume story. Tata Consumer pays 60x for tea. In discretionary, V-Mart and ABFRL lack Trent's unit economics and balance sheet, and Shoppers Stop is the wrong price point for a transfer-led recovery.
All sectors we avoid or underweight →HUL (3.3%, Core) is the broadest single lever on the volume recovery — 60% of its portfolio saw GST cuts, a new CEO is resetting the portfolio and the stock has de-rated to ~42x FY27E. Trent (3.1%, Core) is our discretionary expression: Zudio's 982 stores (from ~240 four years ago) are 80%+ in tier-2/3 towns where the transfers land, and the whole assortment sits under the ₹2,500 GST threshold. Britannia (2.0%, Core) is the cleanest GST beneficiary (biscuits 18% → 5%) with a 50%+ ROE and a multiple at the low end of its own decade. Varun Beverages (1.0%, Core) is the rural-distribution and Africa-growth story at 40x versus 55–70x in 2023–24.
| Biscuits - Market Share | 30 % | as of Mar 19 |
| Cream Wafers - Market Share | 20 % | as of Mar 22 |