Asian Paints, Devyani among top picks as consumption demand improves: Nuvama

India’s consumption story is finally showing signs of a broad-based recovery, with demand improving across fast-moving consumer goods (FMCG), paints, quick-service restaurants (QSR) and discretionary categories, according to Abneesh Roy, Executive Director of Nuvama Institutional Equities. Roy said companies are once again taking price hikes and seeing healthier growth after a sluggish few years.

Roy said, “It’s a good year for most of these companies.”

He believes the paints sector is entering a stronger growth phase after years of weak demand and aggressive competition. He expects all major paint companies to post double-digit revenue growth in 2026-27 (FY27), while competition becomes more balanced rather than “reckless.” According to him, smaller regional players may lose market share as larger companies strengthen distribution and pricing discipline. He also remains positive on companies such as

Asian Paints, Berger Paints, and Birla Opus.

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In the quick-service restaurant space, Roy said Jubilant FoodWorks looks better placed than ITC in the near and medium term. He pointed to stronger same-store sales growth at KFC outlets operated by Devyani and better future growth visibility. “Our top pick in the QSR space will be Devyani,” Roy said.

On the other hand, Roy expects some pressure on Jubilant FoodWorks due to higher fuel costs, manpower expenses and rising minimum wages. He also noted that Domino’s faced operational issues during the January-March quarter of 2026 (Q4FY26) because of fuel availability problems.

Roy also sounded cautious on Pidilite Industries

in the near term after recent cigarette tax hikes. He said volumes and margins could remain weak for the next couple of quarters as companies gradually pass on the higher taxes to consumers. However, he expects recovery later in the year once pricing stabilises.

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Apart from FMCG and paints, Roy sees opportunities in discretionary consumption names as well. He said companies like Metro Brands, Page Industries and Page Industries could benefit from improving consumer sentiment and offer scope for re-rating.

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