FMCG Stocks Outlook for the week - 21 to 24.08.2017
FMCG Stocks Outlook for the week - 21 to 24.08.2017
( www.rupeedesk.in )
Stocks of most fast-moving consumer goods companies are seen trading lower in the coming week as demand has been subdued due to below-normal monsoon rains so far. So far, the country has received 583.5 mm rainfall in the southwest monsoon season, 5% below normal, India Meteorological Department said. Monsoon rains, which have been below normal for over three weeks now, are likely to revive over most parts of the country in the second half of August, the weather body said. Rains in August are crucial for kharif crops, as the standing crops need adequate water during the month for growth and optimal yield. After the monsoon revives, there could be improvement in demand scenario in long term. For now it is subdued due to GST (goods and services tax), and other woes.
Among bellwether companies, cigarette-to-hotel conglomerate ITC Ltd is likely to slip in trade next week as the company is likely to face action from the government over violation of anti-smoking laws, according to reports. Companies like GlaxoSmithKline Consumer Healthcare Ltd and Britannia Industries Ltd are likely to benefit in near term from their continued focus on driving their reach into rural markets. Britannia's revenues improved by 7% despite de-stocking prior to rollout of goods and services tax, while volumes of the company grew by 3%. GSK Consumer's initiative to drive growth by increasing rural and small town penetration with re-launch of small sachets is likely to help over-the-counter marketing income bounce back to normal levels. GSK Consumer is expecting demand recovery led by various marketing initiatives which can improve volume growth to mid-single digits. It is confident of improving margins on premiumisation and various cost saving Initiatives.
Source : Cogencis Information Services Ltd.
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FMCG Stocks Outlook for the week - 21 to 24.08.2017
( www.rupeedesk.in )
Stocks of most fast-moving consumer goods companies are seen trading lower in the coming week as demand has been subdued due to below-normal monsoon rains so far. So far, the country has received 583.5 mm rainfall in the southwest monsoon season, 5% below normal, India Meteorological Department said. Monsoon rains, which have been below normal for over three weeks now, are likely to revive over most parts of the country in the second half of August, the weather body said. Rains in August are crucial for kharif crops, as the standing crops need adequate water during the month for growth and optimal yield. After the monsoon revives, there could be improvement in demand scenario in long term. For now it is subdued due to GST (goods and services tax), and other woes.
Among bellwether companies, cigarette-to-hotel conglomerate ITC Ltd is likely to slip in trade next week as the company is likely to face action from the government over violation of anti-smoking laws, according to reports. Companies like GlaxoSmithKline Consumer Healthcare Ltd and Britannia Industries Ltd are likely to benefit in near term from their continued focus on driving their reach into rural markets. Britannia's revenues improved by 7% despite de-stocking prior to rollout of goods and services tax, while volumes of the company grew by 3%. GSK Consumer's initiative to drive growth by increasing rural and small town penetration with re-launch of small sachets is likely to help over-the-counter marketing income bounce back to normal levels. GSK Consumer is expecting demand recovery led by various marketing initiatives which can improve volume growth to mid-single digits. It is confident of improving margins on premiumisation and various cost saving Initiatives.
Source : Cogencis Information Services Ltd.
