** India's Asian Paints ASPN.NS up 1.4%, Varun Beverages VARB.NS and Hindustan Unilever (HUL) HLL.NS rise 1.8% and 1.2% respectively
** These stocks are Jefferies' "contrarian" picks in India's consumer sector as it sees limited ability for these to lose ground further
** Jefferies says valuations attractive for Pepsi PEP.O-bottler VARB while weak summers, rising competition from Reliance's Campa Cola key risks
** Flags weak earnings trend for HLL, but says recent trend of prioritising growth over earnings, Unilever's ULVR.L focus on India should set stage for recovery
** Jefferies retains buy on HLL when atleast seven brokerages have downgraded the stock in the past two months
** ASPN has been grappling with intensifying competition from new entrant Birla Opus, reduced retail spending and switch to cheaper labels
** Jefferies says easy gains are captured by Birla Opus, expects gradual earnings recovery for ASPN in FY26, double upgrades stock to "buy"
** Avg ratings: VARB, HLL - "buy", ASPN - "sell" - data compiled by LSEG
** YTD VARB down 27%, HLL and ASPN up ~4% and ~11% respectively
(Reporting by Hritam Mukherjee in Bengaluru)
((Hritam.Mukherjee@thomsonreuters.com;))
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