FMCG Stocks Outlook for the week – 09 to 13.03.2015
( www.rupeedesk.in )
Stocks
of fast moving consumer goods companies may continue to trade with a positive
bias on optimism that rebound in consumer demand, and benign raw material
prices may improve
margins
of companies in the sector.
ITC,
which has been on a declining spree since the hike in excise duty on
cigarettes, might see some recovery this week. Excise duty on cigarettes of
length not exceeding 65 mm has been hiked by 25%, and the same on sticks with
other lengths has been increased by 15%.
Hindustan
Unilever is likely to trend higher tracking the overall firmness in the sector
and as the company has hiked prices of some of products under its Pepsodent,
Pond's, Vaseline, Dove and Fair & Lovely brands by 2.4-10%.
Godrej
Consumer Products Managing Director Vivek Gambhir said that operating margins
are seen improving in Jan-Mar and Apr-Jun quarters. He also said that the
company plans to launch 9-10 new products in financial year 2015-16 (Apr-Mar)
and most of them will be in the premium price category. Both these factors are
expected to continue supporting Godrej Consumer stock, which has already risen
6% last week.
The
broader market is likely to consolidate in a range next week amid a slew of
data releases,
defensives
like FMCG and pharmaceutical companies may gain. Market participants will keep an
eye on the index of industrial production for January and consumer price
index-based
inflation for February,
which are slated to be released next week.
