Our top picks in FMCG: ITC, Jubilant FoodWorks and Marico Our top picks in Appliances: Havells, Crompton and Symphony FMCG companies continue to enjoy favorable base: Our FMCG coverage universe is expected to register 10/13% YoY revenue/EBITDA growth during 4QFY18 vs. 12/16% YoY in 3QFY18 and 8/9% YoY in 4QFY17. Consumer offtake is gradually improving with normalising distribution channels (post GST). Therefore, along with a favorable base (also in 1QFY19), FMCG companies would be able to accelerate revenue growth. Macro economic factors are improving steadily and further gains are expected on account of govts focus on agricultural & rural incomes. Rural used to grow 2.5-3% faster than Urban but the delta has now narrowed down to ~1.5%. Management commentary also suggests green shoots in the rural economy and a pickup in demand. International business is expected to recover due to improving consumer confidence index for key geographies and favorable base (geo-political issues, unfavorable currencies). Outliers : Jubilant FoodWorks, Britannia, Colgate, HUL