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We believe that stocks of companies Like Hindustan Unilever Ltd and Colgate Palmolive (India) Ltd are likely to outperform over the next few weeks on value buying. HUL and Colgate have fallen from their all time highs. Both these stocks are likely to outperform as investors look for value stocks. Colgate will particularly do well considering it has maintained its market-leading position despite high competitive intensity. The oral care segment remains resilient with reasonable volume growth and some up-trading; advertising intensity in this segment is on the high side, though.
Stocks of India's largest fast moving consumer goods company, Hindustan Unilever have fallen 21.6% from all-time high of 725 rupees on Jul 22. Many large investors with a one-year perspective have started adding Hindustan Unilever to their portfolio. We believe the FMCG behemoth, which has a strong rural distribution network, will outperform the sector over the next two quarters, as spending in those areas is expected to increase with the forthcoming general elections. We believes that, currently, the entire FMCG sector is going though a dull phase, and expects most stocks to trade in a narrow range in the week ahead.
We believe that stocks of companies Like Hindustan Unilever Ltd and Colgate Palmolive (India) Ltd are likely to outperform over the next few weeks on value buying. HUL and Colgate have fallen from their all time highs. Both these stocks are likely to outperform as investors look for value stocks. Colgate will particularly do well considering it has maintained its market-leading position despite high competitive intensity. The oral care segment remains resilient with reasonable volume growth and some up-trading; advertising intensity in this segment is on the high side, though.
Stocks of India's largest fast moving consumer goods company, Hindustan Unilever have fallen 21.6% from all-time high of 725 rupees on Jul 22. Many large investors with a one-year perspective have started adding Hindustan Unilever to their portfolio. We believe the FMCG behemoth, which has a strong rural distribution network, will outperform the sector over the next two quarters, as spending in those areas is expected to increase with the forthcoming general elections. We believes that, currently, the entire FMCG sector is going though a dull phase, and expects most stocks to trade in a narrow range in the week ahead.
