FMCG Stocks Outlook For The Week - 09 to 13.10.2017
FMCG Stocks Outlook For The Week - 09 to 13.10.2017
( www.rupeedesk.in )
Stocks of fast moving consumer goods companies may trade positively in the coming week, with ITC Ltd and Hindustan Unilever Ltd expected to lead the rally due to better-than-expected festival sales. We expect Jul-Sep (2017-18) to be a relatively robust quarter aided by restocking after goods and services tax implementation. Wholesale and canteen supplies department sales have not yet fully recovered. there is strong festival season sales. In the near term, gains driven by low base and goods and services tax for organised players are likely to reflect in an improvement in revenue and profit
growth trajectory. Cigarette-to-hotel conglomerate ITC will remain in focus this week due to reports that the government may not ban vendors of tobacco products from selling food products. The government had on Wednesday written to state and local bodies asking them to stop cigarette shops from selling non tobacco products such as toffees, candies, chips, biscuits, and soft drinks items
that typically lure children towards tobacco outlets. Among bellwether stocks, though cigarette volumes for ITC are expected to decline 4% on year due to price hike, an 11% on-year growth in the segment's earnings before interest and taxes is seen in Jul-Sep quarter. HUL is likely to witness 8% revenue growth in its domestic FMCG business during the quarter aided by a price-led growth. Rural markets that have witnessed maximum Seen in narrow range ahead of Jul-Sep earnings deceleration on account of macro challenges could potentially see an improvement aided by increase in food
inflation and higher rural outlay. The focus will also shift to Jul-Sep quarter earnings of FMCG companies to gauge the impact of the new indirect tax rollout. Companies with discretionary products are expected to perform slightly better, though volumes are likely to remain low for all companies.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Stocks of fast moving consumer goods companies may trade positively in the coming week, with ITC Ltd and Hindustan Unilever Ltd expected to lead the rally due to better-than-expected festival sales. We expect Jul-Sep (2017-18) to be a relatively robust quarter aided by restocking after goods and services tax implementation. Wholesale and canteen supplies department sales have not yet fully recovered. there is strong festival season sales. In the near term, gains driven by low base and goods and services tax for organised players are likely to reflect in an improvement in revenue and profit
growth trajectory. Cigarette-to-hotel conglomerate ITC will remain in focus this week due to reports that the government may not ban vendors of tobacco products from selling food products. The government had on Wednesday written to state and local bodies asking them to stop cigarette shops from selling non tobacco products such as toffees, candies, chips, biscuits, and soft drinks items
that typically lure children towards tobacco outlets. Among bellwether stocks, though cigarette volumes for ITC are expected to decline 4% on year due to price hike, an 11% on-year growth in the segment's earnings before interest and taxes is seen in Jul-Sep quarter. HUL is likely to witness 8% revenue growth in its domestic FMCG business during the quarter aided by a price-led growth. Rural markets that have witnessed maximum Seen in narrow range ahead of Jul-Sep earnings deceleration on account of macro challenges could potentially see an improvement aided by increase in food
inflation and higher rural outlay. The focus will also shift to Jul-Sep quarter earnings of FMCG companies to gauge the impact of the new indirect tax rollout. Companies with discretionary products are expected to perform slightly better, though volumes are likely to remain low for all companies.
Godrej Consumer - Down
Procter&Gamble - Up
Hindunilvr - Up
Colgate - Up
Itc - Down
Procter&Gamble - Up
Hindunilvr - Up
Colgate - Up
Itc - Down
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Source : Cogencis Information Services Ltd.
