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Stocks of major fast moving consumer goods companies are likely to be muted in the week ahead after outperforming this week. FMCG stocks gained significantly this week on the back of Unilever Plc's open offer to increase its stake in Hindustan Unilever Ltd. We believe the recent run-up in prices is a good opportunity for investors to book profits. On Apr 30, Hindustan Unilever's Anglo-Dutch parent, Unilever Plc, announced a $5.4-bln open offer to increase its stake in the Indian subsidiary to 75% from 52.45%. Positive results also aided sentiment. The BSE FMCG index ended 7.5% higher for the week against a 1.5% rise in the BSE's 30-stock Sensex. Stocks of multinational FMCG companies like HUL, Nestle, and GSK Consumer are trading at 33-36 times their two-year forward earnings, while those of Indian FMCG companies like Dabur and Marico are trading at 23-26 times two-year forward earnings.
