FMCG Stocks Outlook for the week – 27 to 31.03.2017
FMCG Stocks Outlook for the week – 27 to 31.03.2017
( www.rupeedesk.in )
The shares of fast moving consumer goods companies are expected to rise further next week as fundamentals for most companies remain strong. The near completion of re-monetisation will also help sales in most urban and rural areas. A fall in prices of key raw materials such as barley, maize, palm oil, sugar and wheat over the past month is likely to provide further impetus to companies operating in the food segment. While prices of barley fell 12% in March, those of palm oil fell 34% during the month. Price hikes by some companies in biscuit and cigarette vertical is also likely to help. ITC Ltd had hiked prices of most of its premium variant cigarettes by 11-12%. In the non-food segment, prices of detergents and soaps were raised as raw material prices, other than palm oil, rose. Due to rising raw material cost, detergent prices were raised by 2-3%. In food, prices largely remained stable across categories except 4% price hike for 'Nescafe Classic- 100% natural coffee'. Amul has undertaken price hike of 2 rupees per ltr for its milk pouches. We expect sales to recover in second half of 2017-18 (Apr-Mar) but do not expect growth getting back to pre-slowdown levels. The uptrend in Hindustan Unilever Ltd is intact, but the stock is likely to see consolidation in near term.
Source : Cogencis Information Services Ltd.
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FMCG Stocks Outlook for the week – 27 to 31.03.2017
( www.rupeedesk.in )
The shares of fast moving consumer goods companies are expected to rise further next week as fundamentals for most companies remain strong. The near completion of re-monetisation will also help sales in most urban and rural areas. A fall in prices of key raw materials such as barley, maize, palm oil, sugar and wheat over the past month is likely to provide further impetus to companies operating in the food segment. While prices of barley fell 12% in March, those of palm oil fell 34% during the month. Price hikes by some companies in biscuit and cigarette vertical is also likely to help. ITC Ltd had hiked prices of most of its premium variant cigarettes by 11-12%. In the non-food segment, prices of detergents and soaps were raised as raw material prices, other than palm oil, rose. Due to rising raw material cost, detergent prices were raised by 2-3%. In food, prices largely remained stable across categories except 4% price hike for 'Nescafe Classic- 100% natural coffee'. Amul has undertaken price hike of 2 rupees per ltr for its milk pouches. We expect sales to recover in second half of 2017-18 (Apr-Mar) but do not expect growth getting back to pre-slowdown levels. The uptrend in Hindustan Unilever Ltd is intact, but the stock is likely to see consolidation in near term.
Source : Cogencis Information Services Ltd.