Contra stocks to buy: Jefferies picks 3 fallen angels for next 12 months
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In a bold contrarian move, global brokerage Jefferies is telling clients to buy into the carnage gripping India's consumer sector, handpicking three "fallen angels" that have been crushed by weak demand, margin pressure, and fierce competition. The firm has identified Varun Beverages, Hindustan Unilever, and Asian Paints as its top contra bets for the next 12 months, betting that these battered stocks have hit rock bottom with limited downside but "meaningful upside in case of a turn." Consumer-facing stocks have been in free fall, with some plummeting as much as 25-30% from their peaks as a perfect storm of challenges battered the sector. The pain has been particularly acute as companies grappled with subdued demand that first hit rural areas before urban consumption also began showing signs of moderation. "Several consumer firms have faced severe issues in the past few quarters on growth, competition & m...