FMCG Stocks Outlook for the week - 11.11.2013 - 15.11.2013

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The Fast moving consumer goods makers that have a larger share of revenues coming from semi-urban and rural areas are poised to outperform over the next few weeks. The recent result season has shown us that companies like Dabur and Colgate that have had a strong focus on rural areas have been able to maintain market share and achieve strong volume growth.

Investors should consider buying stocks of companies such as Colgate Palmolive India Ltd, Jyothy Laboratories, and Dabur India, as these stocks are likely to outperform their peers. Companies like Colgate and GSK Consumer are introducing premium products in rural areas. These products earn higher margins. While not all products may get accepted in rural areas, but with a good harvest season this year, companies have a higher chance of succeeding.