Sushil Kedia Identifies Multi-Bagger Potential in Experiential Consumption Stocks
Sushil Kedia of Kedianomics maintains bullish outlook on FMCG and experiential consumption sectors despite market volatility. He identifies multi-bagger potential in hotels, travel, leisure, and QSR stocks as consumer spending shifts from asset purchases to experiences. Key picks include BLS International, EIH, Jubilant FoodWorks, Westlife Foodworld, Imagicaa, and Wonderla Holidays, along with select auto stocks Bajaj Auto, Hero MotoCorp, and Tata Motors.
*this image is generated using AI for illustrative purposes only.
Market expert Sushil Kedia, founder of Kedianomics, remains optimistic about FMCG and experiential consumption sectors despite widespread investor concerns over consumer staples valuations and weakening urban demand. Kedia describes himself as an "unbridled bull" on FMCG, citing increased market volatility and negative news flow as factors that typically drive investors toward defensive consumer-facing stocks.
Consumer Story Expanding Beyond Staples
Kedia believes the consumer narrative is broadening beyond traditional staples following supportive policy measures. The Union Budget's income tax changes and GST rationalization have increased household disposable income, with demand gradually flowing into discretionary segments such as white goods. This trend has strengthened over recent months, supported by improving purchasing power and reduced tax pressures.
Shift Toward Experiential Consumption
The market expert anticipates the next phase of consumer spending will transition from asset purchases to experiential consumption. He identifies several sectors positioned to benefit from this shift:
| Sector | Key Beneficiaries |
|---|---|
| Travel | BLS International |
| Hospitality | EIH (for liquid portfolios) |
| Quick-Service Restaurants | Jubilant FoodWorks, Westlife Foodworld |
| Entertainment & Leisure | Imagicaa, Wonderla Holidays |
"Consumers have largely satisfied their demand for air conditioners, washing machines, and dishwashers. The next phase of consumerism will be experiential," Kedia explained. He particularly highlights BLS International as a structural growth story benefiting from rising overseas travel trends.
Hospitality and Entertainment Opportunities
In the hospitality sector, Kedia suggests several hotel stocks appear positioned to potentially double over time, though he favors liquid names like EIH for larger portfolios. For quick-service restaurants, he sees multi-bagger potential in Jubilant FoodWorks and Westlife Foodworld as consumption patterns shift toward eating out.
The entertainment segment also presents opportunities, with Kedia bullish on Imagicaa and Wonderla Holidays. He cites their long consolidation phases and expanding capacity as positive factors supporting future growth prospects.
Auto Sector Prospects
Beyond consumption and leisure, Kedia expects traditional cyclicals to participate in a broader market rally. His auto sector preferences include:
- Two-wheeler segment: Bajaj Auto and Hero MotoCorp showing significant upside potential
- Passenger vehicles: Tata Motors' passenger vehicle business following its demerger
Market Outlook
Kedia believes experiential consumption stocks, combined with select automotive plays, could emerge as key wealth creators as the market advances. He maintains that rising volatility and negative news flow will continue reinforcing the defensive appeal of consumer-facing businesses, with fear driving investors toward consumption-led companies during uncertain periods.
The expert's investment thesis centers on the structural shift in consumer behavior from goods to experiences, positioning experiential consumption as a significant growth driver in the current market environment.
20
