Sushil Kedia sees multi-bagger potential in experiential consumption plays

Sushil Kedia, founder, Kedianomics

• Sushil Kedia bullish on FMCG and experiential consumption amid market volatility
• Hotels, travel, and leisure sectors poised for growth
• Kedia also sees upside in select auto stocks like Bajaj Auto and Tata Motors

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At a time when most investors are shying away from the consumption space, with concerns around lofty valuations of the consumer staples stocks and lagging urban demand weighing on investors, Sushil Kedia remains an "unbridled bull" on FMCG.  According to him, the world will keep going through increased volatility and "non-positive" news, leading to fear propelling FMCG stocks.

Rising market volatility and a steady stream of negative news continue to reinforce the defensive appeal of consumer-facing stocks, arguing that fear itself tends to push investors toward consumption-led businesses during uncertain times.

Kedia believes the consumer story is now widening beyond staples. Following last year’s Union Budget, which increased household disposable income through income tax changes and GST rationalisation, demand has gradually percolated into discretionary segments such as white goods. Over the past few months, this trend has strengthened, supported by improving purchasing power and easing tax pressures.

The next leg of this shift, he said, is moving from asset purchases toward experiential consumption. Sectors such as hotels, leisure, restaurants, amusement parks, and travel-related companies are emerging as key beneficiaries. “Consumers have largely satisfied their demand for air conditioners, washing machines, and dishwashers. The next phase of consumerism will be experiential,” Kedia said.

Among travel-linked plays, he highlighted BLS International, calling it a structural growth story as overseas travel rises. In hospitality, Kedia said several hotel stocks appear positioned to potentially double over time, though he prefers liquid names such as EIH for larger portfolios.

In the quick-service restaurant space, he remains constructive on Jubilant FoodWorks and Westlife Foodworld, seeing multi-bagger potential as consumption shifts toward eating out. He is also bullish on leisure and entertainment stocks, including Imagicaa and Wonderla Holidays, citing long consolidation phases and expanding capacity.

Beyond consumption and leisure, Kedia expects traditional cyclicals to participate in a broader market rally. He sees significant upside in two-wheeler makers Bajaj Auto and Hero MotoCorp, and remains bullish on the passenger vehicle business of Tata Motors following its demerger.

Overall, Kedia believes experiential consumption, combined with select autos, could emerge as key wealth creators as the Nifty works its way toward the 32,000 mark.

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