FMCG Stocks Outlook for the week – 03 to 07.07.2017
FMCG Stocks Outlook for the week – 03 to 07.07.2017
( www.rupeedesk.in )
Stocks of most fast moving consumer goods companies are expected to be narrow range next week
as the market will gauge the impact of of the goods and services tax that will be rolled out from
Saturday. The rollout of GST could lead to some uncertainty in the initial days, which would check
all stocks. Most fast moving consumer goods and products are likely to see lower effective tax rates under the new indirect tax regime. Prices could also fall in near term as transportation and warehousing costs are also likely to go down. Production volumes of shampoos, certain premium skincare cosmetics, detergents and deodorants are likely to take a hit as the segment faces a higher tax rate of 28% under GST as against 18-20% now. This could impact companies such as Emami Ltd and Procter Gamble Health and Hygiene Ltd, . Effective prices of soaps in the non-premium segment could come down due to promotional offers as companies would look to sustain market volume. Sales volumes of some companies such as Britannia Industries Ltd could also take a hit on account of lower discretionary spending and down stocking by clients. Dabur India Ltd, which has seen weak performance since the company declared its Jan-Mar results, has reached its breakout area. The prolong consolidation phase combined with indications from the chart pattern is pointing towards possibility of strong surge in near future.
Source : Cogencis Information Services Ltd.
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FMCG Stocks Outlook for the week – 03 to 07.07.2017
( www.rupeedesk.in )
Stocks of most fast moving consumer goods companies are expected to be narrow range next week
as the market will gauge the impact of of the goods and services tax that will be rolled out from
Saturday. The rollout of GST could lead to some uncertainty in the initial days, which would check
all stocks. Most fast moving consumer goods and products are likely to see lower effective tax rates under the new indirect tax regime. Prices could also fall in near term as transportation and warehousing costs are also likely to go down. Production volumes of shampoos, certain premium skincare cosmetics, detergents and deodorants are likely to take a hit as the segment faces a higher tax rate of 28% under GST as against 18-20% now. This could impact companies such as Emami Ltd and Procter Gamble Health and Hygiene Ltd, . Effective prices of soaps in the non-premium segment could come down due to promotional offers as companies would look to sustain market volume. Sales volumes of some companies such as Britannia Industries Ltd could also take a hit on account of lower discretionary spending and down stocking by clients. Dabur India Ltd, which has seen weak performance since the company declared its Jan-Mar results, has reached its breakout area. The prolong consolidation phase combined with indications from the chart pattern is pointing towards possibility of strong surge in near future.
Source : Cogencis Information Services Ltd.
