FMCG Stocks Outlook for the week – 09 to 13.Jun.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of fast moving consumer
goods companies are seen rising in the next few weeks
on demand revival due to a likely
normal monsoon season. A normal monsoon will be the
biggest mood lifter in rural
India. The slowdown faced by the companies in the subpremium
categories will mostly see
revival in the quarter ahead. The Jan-Mar earnings of
FMCG companies indicated that
revenue growth was driven by discretionary demand.
Aggregate revenue growth for 12
discretionary companies recovered to 14% YoY in 4Q
from 3% YoY in 3Q, a sign that
the worst is behind. The growth pick-up is quite broad
based. Bullish on Titan Co and
TTK Prestige in the consumer discretionary space, and on
ITC and Emami among
consumer staple companies.