FMCG Stocks Outlook For The Week - 03 to 06.10.2017
FMCG Stocks Outlook For The Week - 03 to 06.10.2017
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Stocks of fast moving consumer goods companies are seen moving higher in the coming weeks as rural sales in most areas have picked up owing to better-than-expected festive season sales. The penetration level of bellwether companies like Hindustan Unilever Ltd and Britannia Industries Ltd as well as the underlying growth at retail level for most players is better than a month ago. Organised players, especially in the biscuits segment are benefiting from lower competition from local players post the rollout of the goods and services tax on July 1. Though the prices of some raw materials such as vegetable oil and cereals have increased over the past few days, it is unlikely to have a bearing on the overall sales for most companies. Most of the increase is seasonal. Lower-than-expected monsoon rains could, however, act as a dampener for rabi crops and put pressure on company margins. As of Sep 28, India received 830.7 mm of rainfall, 6% below the normal weighted average of 879.6 mm for the period. The monsoon current has also started to withdraw from some parts of Punjab, Haryana, and parts of west Rajasthan, nearly a month late. For ITC Ltd, though the price hike taken by the company post the new indirect tax rollout could have an adverse impact on volume, margins of the company could witness an incremental growth. Non-cigarette FMCG business is also poised to do well, on the back of revival in overall consumer sentiment, increased market shares, improved product mix and foray in newer categories.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Stocks of fast moving consumer goods companies are seen moving higher in the coming weeks as rural sales in most areas have picked up owing to better-than-expected festive season sales. The penetration level of bellwether companies like Hindustan Unilever Ltd and Britannia Industries Ltd as well as the underlying growth at retail level for most players is better than a month ago. Organised players, especially in the biscuits segment are benefiting from lower competition from local players post the rollout of the goods and services tax on July 1. Though the prices of some raw materials such as vegetable oil and cereals have increased over the past few days, it is unlikely to have a bearing on the overall sales for most companies. Most of the increase is seasonal. Lower-than-expected monsoon rains could, however, act as a dampener for rabi crops and put pressure on company margins. As of Sep 28, India received 830.7 mm of rainfall, 6% below the normal weighted average of 879.6 mm for the period. The monsoon current has also started to withdraw from some parts of Punjab, Haryana, and parts of west Rajasthan, nearly a month late. For ITC Ltd, though the price hike taken by the company post the new indirect tax rollout could have an adverse impact on volume, margins of the company could witness an incremental growth. Non-cigarette FMCG business is also poised to do well, on the back of revival in overall consumer sentiment, increased market shares, improved product mix and foray in newer categories.
ITC - Up
Hindunilvr - Down
Godrej Consumer - Up
Procter&Gamble - Down
Colgate - Down
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Source : Cogencis Information Services Ltd.
