FMCG Stocks
Outlook for the week – 27 to 30.01.2015
( www.rupeedesk.in )
Stocks of fast-moving consumer
goods companies are likely to trade range bound, with market
participants keeping a watch on
Emami, Dabur, and Tata Global Beverages' Oct-Dec earnings to
be detailed next week. While the
Nifty and Sensex have zoomed last week, FMCG, being a
defensive sector, took a back
seat and saw some consolidation. A similar movement is expected
to continue next week amid expiry
of the January futures and options contracts on Thursday.
Emami and Jyothi Laboratories
will detail Oct-Dec results on Wednesday, and Dabur and Tata
Global Beverages on Jan 30.
Emami's net profit is seen up 13% year on year at 1.7 bln rupees
and net sales are expected to
rise 17% to 6.8 bln rupees. Tata Global Beverages is seen posting a
consolidated net profit of 1.3
bln rupees for Oct-Dec, up 11% on year, and net sales of 21.73 bln
rupees, up 6%.
Volume growth of all three
companies Hindustan Unilever, ITC, and Colgate Palmolive India
that came out with their
quarterly earnings last week, has been lower than expected. The
disappointing volume growth of 3%
for HUL, as against the forecast of 5-6%, weighed on the
stock price earlier in the week
but the company's stocks recouped losses and hit a lifetime high of
968.85 rupees yesterday.
In spite of the fact that HUL
stocks have risen dramatically this month, it (the stock) remains my
top pick in the FMCG space. We
are seeing investors moving away from ITC to HUL, which is
pushing up the stock. HUL stocks
have surged nearly 28% so far since Jan 1 on expectation of
revival in consumer demand and
fall in input costs. ITC will continue to be the laggard in the
sector mainly due to the overhang
of likely changes in government's fiscal policies on cigarettes, which could hit the company.
