FMCG Stocks Outlook
for the week – 10 to 14.11.2014
( www.rupeedesk.in )
Stocks of fast moving consumer goods
companies trading with a positive bias in the
week ahead, as they believe that the
overhang of the result season has been done
with, and people will now factor in
lower commodity prices into stock prices.
Crude derivatives such as liner alkyl
benzene and high-density polyethylene are key raw materials for FMCG players. With
prices of crude falling almost 20% over the last three
months.
The result season was less than
existing for FMCG players. However, moving ahead, most companies in the sector will see
margin expansion due to lower commodity prices. The possibility of price cuts is far
fetched.
Industry watchers believe that
despite lower commodity prices, most companies are unlikely to cut prices or introduce
promotions on their premium products.
In order to avoid dilution of the brand and yet introduce the product to more users, the companies may launch smaller pack sizes of premium and super premium products.
In order to avoid dilution of the brand and yet introduce the product to more users, the companies may launch smaller pack sizes of premium and super premium products.
