FMCG stocks
outlook for the week – 24 to 28.11.2014
( www.rupeedesk.in )
Stocks of fast moving consumer
goods companies are likely to be range bound in next week
ahead as the focus will be on
metal companies and other interest-rate sensitive counters.
There were rate cut by China post
market hours yesterday, and there is the RBI policy
announcement on Dec 2. The focus
will clearly be on metal, capital goods and other interest rate
sensitive sectors. FMCG stocks
will be range bound.
Despite an early festival season
and two state elections, most FMCG companies failed to post
strong volume growth numbers in
the Jul-Sep earnings season. An early festive season failed to
boost the sales volume of the
FMCG companies in Q2FY2015. Most of the FMCG companies
such as HUL, Dabur, Emami and
Colgate-Palmolive registered a flat volume growth on a
sequential basis.
The improving consumer sentiment
(especially in the urban markets) is yet to convert into a
strong demand for consumer goods.
As the inflationary trend is receding, we believe the sales volume of the FMCG companies will
improve from Q4FY2015 or the start of FY2016.
