GST cut likely to boost demand. (Photo: Vijay Sartape/NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

HSBC has upgraded Britannia Industries Ltd. from 'reduce' to 'hold' and hiked the target price to Rs 6,140 from earlier Rs 5,120. The brokerage said that, "we see the consumer sector recovering from here, driven by a favorable base, income tax cuts, and GST rate reductions".

In the same light, the brokerage has upgraded Nestle India Ltd. to 'hold' from 'reduce' and hiked its target price to Rs 1,270 from Rs 1,090.

Target PE multiples for Britannia and Nestle India have been raised to 50 times (up from 45 times) and 60 times (up from 55 times), respectively, as both companies are expected to gain the most from the policy change.

HSBC noted that the consumpti

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