Our top picks in FMCG: ITC, Emami, HUL and Jubilant FoodWorks Our top picks in Consumer Appliances: V-Guard, Crompton Volume acceleration likely in 2QFY18: We expect a much-needed recovery in 2QFY18, owing to channel restocking and healthy underlying demand. GST implementation had impacted channel inventory during 1QFY18. Our checks with channels and companies management suggest healthy recovery in the business. Both FMCG and Appliances companies should register healthy volume growth. Recovery in the wholesale channel and rural market was slow, but encouraging in other channels (especially MT) and urban market. Recovery in the south and west regions was better than that in the east and north. While, International business is expected to remain subdued, owing to weak macros in key geographies and unfavourable currency movement. We expect improvement in EBITDA margin for our universe led by price hike and favorable operating leverage. We expect the FMCG and Appliance universe to register revenue/EBITDA growth of 7.2/9.6% and 11.5/12.5% YoY, respectively during 2QFY18.