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Stocks of fast moving consumer goods companies are likely to remain muted in the week ahead tailing sector behemoth Hindustan Unilever Ltd, which reported lower-than-expected volume growth Friday. Hindustan Unilever disappointed the Street as it announced a year-on-year growth of 4% in sales volumes for Apr-Jun, against analyst’s estimate of around 6%. Sales for the quarter were at 66.87 bln rupees against analyst’s estimate of 70.17 bln rupees. If HUL has posted poor sales numbers, then it means that even other companies in the sector are likely to face the heat of the slowing economy. FMCG stocks will remain muted, and are likely to pick up only if mid-sized companies like Godrej Consumer and Marico post good numbers.
Oral-care major Colgate Palmolive (India) Ltd is scheduled to detail its Apr-Jun earnings Monday. The company is expected to post a 13% year-on-year increase in its Apr-Jun profit to 1.32 bln rupees, on the back of higher advertising and promotional expenses. We expect the company to report sales of 8.6 bln rupees for Apr-Jun, up 17% over the same period last year, fuelled by a 10% increase in sales volumes. Technical analysts, however, have a bullish view on the entire FMCG sector. Bullish view on tobacco-major, ITC and believes that the stock is likely to touch 395 rupees in the next few weeks and had advised his clients to buy the stock at current levels.
Stocks of fast moving consumer goods companies are likely to remain muted in the week ahead tailing sector behemoth Hindustan Unilever Ltd, which reported lower-than-expected volume growth Friday. Hindustan Unilever disappointed the Street as it announced a year-on-year growth of 4% in sales volumes for Apr-Jun, against analyst’s estimate of around 6%. Sales for the quarter were at 66.87 bln rupees against analyst’s estimate of 70.17 bln rupees. If HUL has posted poor sales numbers, then it means that even other companies in the sector are likely to face the heat of the slowing economy. FMCG stocks will remain muted, and are likely to pick up only if mid-sized companies like Godrej Consumer and Marico post good numbers.
Oral-care major Colgate Palmolive (India) Ltd is scheduled to detail its Apr-Jun earnings Monday. The company is expected to post a 13% year-on-year increase in its Apr-Jun profit to 1.32 bln rupees, on the back of higher advertising and promotional expenses. We expect the company to report sales of 8.6 bln rupees for Apr-Jun, up 17% over the same period last year, fuelled by a 10% increase in sales volumes. Technical analysts, however, have a bullish view on the entire FMCG sector. Bullish view on tobacco-major, ITC and believes that the stock is likely to touch 395 rupees in the next few weeks and had advised his clients to buy the stock at current levels.
