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Stocks of fast moving consumer goods companies are seen muted in the week ahead as frontline companies like ITC Ltd and Colgate Palmolive India Ltd reported poor sales and profit numbers, respectively. ITC reported a 21.45% increase in its net profit to 22.3 bln rupees, however analysts estimate sales of cigarettes in volume terms fell by about 4% from a year ago, owing to aggressive price hikes taken by the company. Oral care major Colgate Palmolive India Ltd reported a 24.4% on year fall in its Jul-Sep net profit to 1.09 bln rupees as the company stepped up its advertising and promotional spends to fight competition.
The FMCG sector that was almost oblivious to the slowdown in the economy is now showing signs of fatigue in this quarter, stocks will remain muted in the week ahead, they may pick up only after investors see proof that festive demand has set in. We will watch out for FMCG-behemoth Hindustan Unilever Ltd that is scheduled to detail its Jul-Sep earnings on Saturday.
Hindustan Unilever Ltd is seen posting a modest 7% year on year rise in net profit for Jul-Sep to 8.6 bln rupees on the back of a higher tax and rising advertising spend. Companies are reporting poor numbers, as sales in urban areas have been dismal. Going ahead however sales in rural areas may pick on the back of good harvests and the upcoming elections.
Stocks of fast moving consumer goods companies are seen muted in the week ahead as frontline companies like ITC Ltd and Colgate Palmolive India Ltd reported poor sales and profit numbers, respectively. ITC reported a 21.45% increase in its net profit to 22.3 bln rupees, however analysts estimate sales of cigarettes in volume terms fell by about 4% from a year ago, owing to aggressive price hikes taken by the company. Oral care major Colgate Palmolive India Ltd reported a 24.4% on year fall in its Jul-Sep net profit to 1.09 bln rupees as the company stepped up its advertising and promotional spends to fight competition.
The FMCG sector that was almost oblivious to the slowdown in the economy is now showing signs of fatigue in this quarter, stocks will remain muted in the week ahead, they may pick up only after investors see proof that festive demand has set in. We will watch out for FMCG-behemoth Hindustan Unilever Ltd that is scheduled to detail its Jul-Sep earnings on Saturday.
Hindustan Unilever Ltd is seen posting a modest 7% year on year rise in net profit for Jul-Sep to 8.6 bln rupees on the back of a higher tax and rising advertising spend. Companies are reporting poor numbers, as sales in urban areas have been dismal. Going ahead however sales in rural areas may pick on the back of good harvests and the upcoming elections.
