Buy Titan Company, sell Colgate Palmolive: Nitin Mathur

Nitin Mathur, EMs Consumer Research at Societe Generale told CNBC-TV18, "We are buyers in Titan Company and sellers in Colgate Palmolive (India). We don’t like companies which excessively focus on gross margins or where the gap from regional competition is expanding beyond sustainable levels. We did some exercise on Colgate Palmolive on purchasing power parity basis and we realised that some of the premium products are priced higher than the prices in the US as well. It is not a surprise because the 5 percent volume growth that they are delivering doesn’t excite us that much. We would like to see the number inching up before we get more confident on the stock."

"For Titan Company we were surprised that they are reducing the making charges and they are addressing the concerns where they were losing two regional players or other branded players in terms of jewellery making. So we are positively biased on Titan from longer term perspective," he said.