www.rupeedesk.in
We see buying in stocks of fast-moving consumer goods companies such as Hindustan Unilever, Colgate Palmolive (India) and Dabur India, which have been able to deliver a strong volume growth in Jan-Mar. We have seen that companies like HUL, Dabur and Colgate have delivered good volume growth, they may have spent more on advertising for doing so, but they have displayed that they have the capacity to grow in a tough market, the money spend on advertising should be seen as an investment in the brands. This trend can be observed in stocks like Colgate Palmolive, which continues to find favour among analysts despite a drop in profits owing to higher advertising spends. Colgate India on Tuesday reported a 5.8% year-on-year drop in profit to 1.23 bln rupees due to a strong increase in advertising and employee costs. Net sales for Jan-Mar increased 18.3% to 8.12 bln rupees on account of 12% overall volume growth.
