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    Relying on MOAT of strong brands: 6 non-FMCG stocks from consumer space with upside potential of up to 31%

    Synopsis

    Normally FMCG sector is associated with the power of brands. However, there are many industries, where a strong brand plays an important role. There are enough examples of firms that have built strong brands & have been getting premium on Street. The reason, a strong brand helps a company weather storms of an economic slowdown or inflationary pressure. Also over long term the final cost of doing business is lower, margins are higher as the concept of reverse working capital comes into play when the brand is strong. Yes, there are phases where they underperform because sometimes their valuations do get stretched, but then over time earnings do tend to help in normalization of valuations.

    Having a strong brand is the backbone of any consumer facing business. Whether it is inflationary headwinds or overall economic slow down, companies with strong brands have shown that finally it was the brand which helped them in tough times. Both in terms of business and performance on the stock market performance in the long term. While the discretionary spending does get hit when inflation, in case of India, it has been relatively higher than
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