FMCG
Stocks Outlook for the week – 01 to 05.09.2014
( www.rupeedesk.in )
Stocks of fast moving
consumer goods companies trading range-bound next week, as
they believe that
bargain buying will provide support to mid-cap stocks in the sector.
There may be some
bargain buying in stocks of mid-cap FMCG companies like Tata
Global Beverages and
Godrej Consumer Products. Front line stocks are rather expensive
currently.
Stocks of India's
largest FMCG company Hindustan Unilever touched a lifetime high of
744.90 rupees on
Thursday. Dabur India also touched its all-time high of 235.55 rupees
during the week.
With a 5.4% surge in
the stock price of FMCG heavyweight Hindustan Unilever during
the week, the BSE
FMCG index rose 3.2% for the week ended Aug 28, outperforming
the 0.8% rise in the
benchmark Sensex.
Stocks of Tata Global
Beverages concerns that higher Kenyan tea prices would eat into
the profits of the
company. Tea prices in Kenya have jumped about 15% over the last
month. However, we
recommended that long-term investors could accumulate the stock
as they see
significant value unlocking in the next few years.
Godrej Consumer
Products to introduce premium products in its portfolio as a positive
strategy adopted by
the management. The company recently launched high-end hair care products under the
brand name 'B:Blunt'.
