FMCG Stocks Outlook for the week – 26 to 30.09.2016
Click Here & Register To Get 2 days Trial Tips
May fall next week as raw material cost high
Click Here & Register To Get 2 days Trial Tips
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Stocks of fast moving consumer goods companies may fall in the coming days as the sector continues to face pressure from rising cost of raw materials. Prices of crude oil rose 10.8% on month, palm oil over 20% and sugar about 2% in August. Revenue momentum in the fast moving consumer goods sector will continue to remain subdued. Though expectations of an earnings recovery are strong in the Oct-Mar period owing to normal monsoon this year, the green shoots may appear very late. The extent of recovery may not be as strong as market expectations. In the Jun-Sep monsoon season, India received 813.1 mm of rainfall until Thursday, 96% of the long period average. A normal monsoon could also see the demand for household insecticide business rise during the Jul-Sep quarter. The brokerage has a 'buy' rating for stocks of Emami Ltd and a 'sell' rating for Godrej Consumer Products Ltd. A pick-up in consumer demand in the festive season will
help companies perform better in the immediate quarter. HUL (Hindustan Unilever Ltd), given its widest rural reach, is expected to be the biggest beneficiary of this pick-up in consumer demand. Jubilant FoodWorks Ltd, the food service company that operates Domino's Pizza and Dunkin Donuts chains in India, may face a tough time ahead. The resignation of the company's chief executive Ajay Kaul on Sep 19 after being at the helm for 11 years is seen by many in the market as an outcome of the company's poor show in the Apr-Jun quarter this year. The company reported a net profit of 189.9 mln rupees in Apr-Jun, down 31% on year. The company's volume in the same-store sales category fell 3.2% on year. The de-growth in same-store sales was a "matter of concern". The long-term story of food service industry is in place and Jubilant FoodWorks Ltd may benefit from the demand revival. But until same store sales improves, margins and earnings may remain suppressed
help companies perform better in the immediate quarter. HUL (Hindustan Unilever Ltd), given its widest rural reach, is expected to be the biggest beneficiary of this pick-up in consumer demand. Jubilant FoodWorks Ltd, the food service company that operates Domino's Pizza and Dunkin Donuts chains in India, may face a tough time ahead. The resignation of the company's chief executive Ajay Kaul on Sep 19 after being at the helm for 11 years is seen by many in the market as an outcome of the company's poor show in the Apr-Jun quarter this year. The company reported a net profit of 189.9 mln rupees in Apr-Jun, down 31% on year. The company's volume in the same-store sales category fell 3.2% on year. The de-growth in same-store sales was a "matter of concern". The long-term story of food service industry is in place and Jubilant FoodWorks Ltd may benefit from the demand revival. But until same store sales improves, margins and earnings may remain suppressed
Free Intraday Tips : Join Our Whatsapp No : 9841986753