FMCG Stock Outlook for the week – 10 to 14.07.2017
FMCG Stock Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The stocks of most fast moving consumer goods companies are expected to rise next week, in line
with broader market indices that are likely to consolidate following the rollout of goods and services tax. The implementation of GST on Jul 1 did not have any immediate impact on the market as prices of most fast moving consumer goods have not yet been revised. The prices of fast moving consumer goods and products are likely to be revised by companies in the next few weeks with most products and goods seeing lower effective tax rates under the new tax regime. Prices of many products are expected to fall due to lower tax rate under GST, and this may lift sales volume without hitting margins of companies. However, stocks of Emami Ltd and Procter Gamble Health and Hygiene Ltd are likely to show volatility next week as the tax rates on premium skincare cosmetics, detergents and deodorants segment have been increased to 28% under GST regime. Effective prices of wheat flour are expected to be revised in coming weeks and this could impact stocks of companies like Hindustan Unilever Ltd, ITC ltd and Britannia Industries Ltd. Wheat flour is used as a major ingredient by many companies for products such as biscuits, bread and cakes.
Source : Cogencis Information Services Ltd.
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FMCG Stock Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
The stocks of most fast moving consumer goods companies are expected to rise next week, in line
with broader market indices that are likely to consolidate following the rollout of goods and services tax. The implementation of GST on Jul 1 did not have any immediate impact on the market as prices of most fast moving consumer goods have not yet been revised. The prices of fast moving consumer goods and products are likely to be revised by companies in the next few weeks with most products and goods seeing lower effective tax rates under the new tax regime. Prices of many products are expected to fall due to lower tax rate under GST, and this may lift sales volume without hitting margins of companies. However, stocks of Emami Ltd and Procter Gamble Health and Hygiene Ltd are likely to show volatility next week as the tax rates on premium skincare cosmetics, detergents and deodorants segment have been increased to 28% under GST regime. Effective prices of wheat flour are expected to be revised in coming weeks and this could impact stocks of companies like Hindustan Unilever Ltd, ITC ltd and Britannia Industries Ltd. Wheat flour is used as a major ingredient by many companies for products such as biscuits, bread and cakes.
Source : Cogencis Information Services Ltd.
