He also pointed to the new managing director’s strong focus on ground-level execution and the potential for value unlocking from its Indian Premier League (IPL) franchise as additional positive factors. Based on this, he anticipates a strong recovery and a new peak for the stock in the coming year.
In contrast, Roy described other fast-moving consumer goods (FMCG) players as being more of a ‘fourth-quarter recovery story’. He stated that while Pidilite Industries is a ‘great compounding story’ with double-digit volume growth, it lacks significant valuation comfort.
For ITC, he expects a margin recovery in its cigarette business in the January-March quarter of 2026 (Q4FY26), driven by falling leaf tobacco prices, but highlighted that the upcoming taxation policy in December will be a critical factor to watch. He views the current 6% growth in cigarette volume as a good number.
Both Dabur India and Hindustan Unilever (HUL) are also seen as fourth-quarter recovery plays, as they are still dealing with the impact of goods and services tax (GST) transitions in October.
Regarding the broader alcoholic beverage space, Roy remains positive. He stated that while he does not formally cover Radico Khaitan, the entire sector is poised for growth. He listed four key reasons for this optimism: higher disposable income from GST cuts boosting discretionary spending, benign raw material costs, the upcoming UK tax benefit in FY27, and continued strong growth in the Andhra Pradesh market.
Also Read: Heritage Foods sees Get-A-Way deal as growth driver in value-added products
He reiterated his preference for United Spirits, which his firm rates as a buy.
For the entire interview, watch the accompanying video
Catch all the latest updates from the stock market here
