FMCG Stocks Outlook for the week – 25 to 29.01.2016
ITC
to drag consumer stocks, results eyed
( www.rupeedesk.in )
Stocks
of fast-moving consumer goods companies are seen trading lower next week
as
earnings of ITC Ltd's Oct-Dec results will weigh on all consumer stocks and
most
companies
are expected to announce their results during the period. ITC yesterday
reported
a marginal 0.68% on-year rise in net profit for Oct-Dec to 26.53 bln rupees,
missing
analysts' estimate and this is expected to weigh on other stocks.
Next
week, Godrej Consumer Products Ltd, Colgate Palmolive India Ltd, Dabur India
Ltd,
United Spirits Ltd, Jyothy Laboratories Ltd, Tata Coffee and Kansai Nerolac
Paints
Ltd will detail their Oct-Dec earnings. Colgate India is estimated to post a
12%
rise
in net profit at 1.5 bln rupees and net sales is expected to rise 5% to 10.4
bln
rupees.
Analysts expect Colgate India to see some impact due to competition from
Patanjali
Ayurveda.
Patanjalis
increasing its market share at the expense of established players. Dabur is
expected
to see an impact due to Pantanjali's expanding market share while rural
demand
has been weak in the quarter, which is also expected to have an impact.
Dabur
is expected to post a 13% rise in net profit at 3.2 bln rupees in the December
ended
quarter, while net sales in the period are expected to rise 8% to 22.3 bln
rupees.