Consumer cos to see tepid volume growth, Buy ITC: CIMB

Varun Lohchab Head-India Research at CIMB Equities expects consumer companies to see tepid volume growth. The two companies in this segment —HUL and ITC — have been suffering on volume growth front. Lohchab says base for ITC's cigarette volumes is likely to become favourable in the second half of current fiscal. He has a buy rating on the stock."This quarter we are expecting around 11-12 percent drop in cigarette volumes. Cigarette EBIT will grow by around 7-8 percent in our view which is better than what they reported in Q1. Second half will get better for ITC in great volumes and overall EBIT growth," he told CNBC-TV18.In case of HUL, Lohchab says its strength lies in the personal care products segment which is doing well.Watch video for the entire analysis