ITC, Eternal, Swiggy, HUL, Titan, Jubilant Food shares: BNP Paribas target prices

BNP Paribas, in its latest strategy note, said it has turned positive on consumer staples and consumer discretionary, citing a recovery in volume growth across staples companies and saying the staples industry’s topline growth hit a multi-year high in the June quarter. The foreign brokerage has assigned an ‘Outperform’ rating to Britannia Industries Ltd, Titan Company Ltd and DOMS Industries Ltd. It also likes online food delivery platforms Eternal Ltd and Swiggy Ltd

The brokerage also set out a more cautious view on some other consumer names. It flagged valuation and growth concerns for Jubilant FoodWorks Ltd, kept a 'Neutral' stance on Godrej Consumer Products Ltd and Nestle India, and noted that Nestle India is trading at a sharp premium to Hindustan Unilever Ltd (HUL).

Target prices for ITC, HUL, Eternal, Swiggy, HUL, others 

Britannia Industries

On Britannia, BNP Paribas said the biscuits category has seen a sharp GST rate cut, but the full benefits had not reflected in the case of the company because of a dual pricing issue. It said the issue was resolved in June 2026, after which the company saw an acceleration in sales growth to the mid-teens. BNP Paribas said it expects improved performance from Britannia in FY27. The stock is currently trading at 44 times FY28E P/E, against an average of 49 times over 2019-2025.

Titan Company

On Titan Company, the brokerage said the company delivered about 21 per cent earnings CAGR over FY16-26 and that it expects 20 per cent earnings CAGR over FY26-29. It said that despite strong market share gains and a dominant position, Titan still has only about 9 per cent share of India’s jewellery market. BNP Paribas said it expects strong topline growth to be supported by store additions, market share gains in India and international business expansion.

DOMS Industries

On DOMS Industries, BNP Paribas said the company delivered 22 per cent revenue CAGR and 25 per cent Ebitda CAGR over FY16-26. It said it is building in 19 per cent revenue CAGR and 19 per cent EBITDA CAGR over FY26-29. The brokerage said DOMS’ growth has been well ahead of the median growth rate of 7 per cent CAGR in its staples coverage over the last decade. It added that DOMS is currently trading at 41 times FY28E P/E, similar to some staple names, but offers stronger long-term earnings growth prospects.

Among the stocks it does not favour, BNP Paribas said Jubilant FoodWorks’ topline growth over the last year has been driven by margin-dilutive initiatives and a low base. It said the capex intensity of the business has increased significantly while cash EBITDA margins have declined. The brokerage added that the high base from the second half of FY26 has started slowing sales growth, and that current valuations appear expensive.

Godrej Consumer Products

On Godrej Consumer Products, BNP Paribas said the company has faced issues in certain categories and geographies over the years, leading to consistent guidance misses. It said GCPL’s core categories in India are unexciting and that the company has been unable to accelerate growth in home insecticides even with the new formulation. The brokerage also said recent management changes have raised concerns on the execution of its Speedboat strategy. GCPL is currently trading at 39 times FY28E P/E.

Nestle India

On Nestle India, BNP Paribas said the company has seen the biggest benefits of the GST rate cut within its coverage, but as those gains anniversarise in the second half of FY26, it expects topline growth to normalise to 10-11 per cent, in line with its average over the last decade, compared with 18-25 per cent seen in the last three quarters. It said Nestle India is currently trading at 60 times FY28E P/E, against HUL at 39 times P/E, which it described as an all-time-high premium.

Overall, BNP Paribas said it is constructive on consumer staples and consumer discretionary, backed by improving volume growth and a stronger industry topline trend, while preferring Britannia, Titan and DOMS and remaining cautious on Jubilant FoodWorks, Godrej Consumer Products and Nestle India.

Eternal

BNP Paribas assigned a September 2028 EV/Ebitda multiple of 30 times to Eternal’s FD business. "We arrive at our target valuation multiple by benchmarking with QSR and consumer staples companies. We value Eternal’s QC business (Blinkit) using DCF which translates into 1.5x Sep-28E EV/NOV vs 0.5x for Swiggy Instamart. Due to larger scale and higher multiple, our EV for Blinkit is c13x that of Instamart. Blinkit accounts for 2/3 rd of our valuation of Eternal," it said.

Swiggy

BNP Paribas said it valued Swiggy's QC business conservatively at 0.5 times September 2028E EV/NOV against 1.5 times for Eternal’s QC business.

"This is to factor in the higher losses and lower market share of Instamart. Our valuation of 0.5 times EV/NOV compares with a valuation of 3.3 times for DMART and 3.8 times for Vishal Mega Mart. We are assuming 17 per cent GOV CAGR in food delivery led by 15 per cent CAGR in orders over FY26-29. In QC we expect $5.1 billion NOV in FY29 vs $2.4b annualized NOV in 4QFY26. We expect 3.1 per cent adjusted Ebitda margin in FY29 vs 15 per cent in 4QFY26 (%NOV).," BNP Paribas said.