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Fast-moving consumer goods stocks are seen remaining strong ahead of their Jan-Mar earnings, as they are expected to report steady sales volume and net profit growth in an otherwise tough macroeconomic scenario. Dabur India and Godrej Consumer Products are expected to report their Jan-Mar earnings on Apr 30. In a report on FMCG sector companies, UBS has listed ITC, Hindustan Unilever, Nestle India and United Spirits as its top picks, citing factors such as an uptick in sales volume growth for Nestle, and prospect of improvement in profitability for ITC. Even though FMCG stocks are at elevated valuations, there is room for further increase in their value in the short term as they are seen reporting predictable earnings for Jan-Mar, when compared with companies in other sectors such as infrastructure, power, steel and automobiles. Companies in other sectors have been affected more by the economic slowdown, which is seen making FMCG companies attractive for investors. Many investors have already taken positions in FMCG stocks anticipating uncertainty in other sectors and steadiness in FMCG companies' performance, and so these stocks are likely to retain strength.
Fast-moving consumer goods stocks are seen remaining strong ahead of their Jan-Mar earnings, as they are expected to report steady sales volume and net profit growth in an otherwise tough macroeconomic scenario. Dabur India and Godrej Consumer Products are expected to report their Jan-Mar earnings on Apr 30. In a report on FMCG sector companies, UBS has listed ITC, Hindustan Unilever, Nestle India and United Spirits as its top picks, citing factors such as an uptick in sales volume growth for Nestle, and prospect of improvement in profitability for ITC. Even though FMCG stocks are at elevated valuations, there is room for further increase in their value in the short term as they are seen reporting predictable earnings for Jan-Mar, when compared with companies in other sectors such as infrastructure, power, steel and automobiles. Companies in other sectors have been affected more by the economic slowdown, which is seen making FMCG companies attractive for investors. Many investors have already taken positions in FMCG stocks anticipating uncertainty in other sectors and steadiness in FMCG companies' performance, and so these stocks are likely to retain strength.
