Shares of Jubilant, Asian Paints, Godrej and Dabur will gain from 7th Pay Commission report: BofaML.
The 7th Pay Commission’s recommendation of a 23.6 per cent hike in salaries for civil servants to boost discretionary spending, says Bank of America Merrill Lynch.
It maintains “buy’’ on Jubilant Foodworks, Asian Paints, Godrej Consumer Products and Dabur India.
It adds buy for 21 per cent to 32 per cent potential upside.
It says stocks’ multiples have corrected from peak, and surge in EPS growth could support premium valuation.
Shares of Jubilant Foodworks were up 1.42 per cent, Asian Paints advanced 2 per cent, Dabur gained 0.8 per cent and Godrej Consumer rose 1.15 per cent.