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
( www.rupeedesk.in )
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.
