FMCG Stocks Outlook For The Week – 25 to 29.09.2017
FMCG Stocks Outlook For The Week – 25 to 29.09.2017
( www.rupeedesk.in )
Stocks of most fast moving consumer goods companies are seen rising next week after consolidating at a lower level this week. All companies in the segment fell this week. Fast moving consumer goods Companies have largely recovered from disruptions caused by demonetisation and de-stocking
before the rollout of goods and services tax. Hereon, sales volume of most companies may accelerate to 7- 8% as against the current growth of 5-6%. On other hand, fast moving consumer goods companies are also likely to hike prices of their products by 5-6% during the ongoing festival season.
Higher input tax credits under goods and services tax, continued low advertising and promotion spend, and low reinvestment could also boost operating margins for most companies. Volumes at quick service restaurants are also likely to pick up in the near term after subdued quarters as companies focus on shifting to healthier and more nutritious food. QSRs (Quick Service Restaurants) have also started cost cutting by shutting unprofitable stores and use of smart electronic equipment in their branches. Opening of new stores has also seen low digit growth, which will further help them.
Source : Cogencis Information Services Ltd.
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FMCG Stocks Outlook For The Week – 25 to 29.09.2017
( www.rupeedesk.in )
Stocks of most fast moving consumer goods companies are seen rising next week after consolidating at a lower level this week. All companies in the segment fell this week. Fast moving consumer goods Companies have largely recovered from disruptions caused by demonetisation and de-stocking
before the rollout of goods and services tax. Hereon, sales volume of most companies may accelerate to 7- 8% as against the current growth of 5-6%. On other hand, fast moving consumer goods companies are also likely to hike prices of their products by 5-6% during the ongoing festival season.
Higher input tax credits under goods and services tax, continued low advertising and promotion spend, and low reinvestment could also boost operating margins for most companies. Volumes at quick service restaurants are also likely to pick up in the near term after subdued quarters as companies focus on shifting to healthier and more nutritious food. QSRs (Quick Service Restaurants) have also started cost cutting by shutting unprofitable stores and use of smart electronic equipment in their branches. Opening of new stores has also seen low digit growth, which will further help them.
Source : Cogencis Information Services Ltd.
