FMCG Stock Outlook for the week – 11 to 15.09.2017

FMCG Stock Outlook for the week – 11 to 15.09.2017

Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040

FMCG Stock Outlook for the week – 11 to 15.09.2017 )

 Seen consolidating next week; HUL may decline Stocks of fast moving consumer goods companies are likely to consolidate next week. Even as a near-normal monsoon and stability in sales after the rollout of goods and services tax are likely to spur rural and urban spending, the overhang of demonetisation is still to wane and allow shares to rise further. Sales volumes of the consumer goods companies, however, have not reached pre-demonetisation levels and hence an absolutely positive momentum for these companies is lacking as of now. Biscuit-maker Britannia Industries Ltd's strong pipeline, sales from new categories and recovery in industry growth rate is likely to help the company sustain growth in the near term. Owing to slower off-take, companies are focusing more on expanding their direct reach in rural areas rather than opting for per store reach. Hand-held devices that make use of big data and analytics have also helped in improving rural sales. Gains due to these measures will be much more in segments such as toothpaste, soaps, dairy and hair colour. Undercutting is also likely to dip and more wholesalers and retailers are opting to join the formal sales channel. Undercutting is when retailers transact only with wholesalers who offer them better rates, thereby limiting the company's reach and sales volume. 

Source : Cogencis Information Services Ltd.