FMCG Stocks
Outlook for the week - 02 to 06.02.2015
( www.rupeedesk.in )
Stocks of fast moving consumer
goods companies are likely to trade rangebound next week
tracking the overall broader
market trend and lack of any major triggers. Market participants will
eye Oct-Dec earnings of Godrej
Consumer Products, to be released on Thursday. We expect,
Godrej Consumer is likely to
report a consolidated net profit of 2.43 bln rupees for the quarter
ended December, up 24% from a
year ago, and net sales of 21.98 bln rupees, up 11% year-onyear.
Among the heavyweights, we remain
positive on Hindustan Unilever, despite a 3% fall in its
stock price this week. Revival in
consumer demand and fall in input costs are seen supporting
HUL in the long run.
However, we do not expect any
significant upward movement due to overhang of likely changes
in government's fiscal policies
on cigarettes, which could hit the company.
Tata Global Beverages Ltd
yesterday reported a 29.54% on-year fall in Oct-Dec consolidated net
profit to 842.4 mln rupees, way
below the 1.32-bln-rupee. As far as fundamentals are concerned,
concerns over tepid volume growth
in sales may offset the fall in raw material costs for
companies.
In the broader market, Nifty and
Sensex are expected to consolidate next week. The Reserve
Bank of India's bimonthly
monetary policy on Tuesday will be in focus. The policy, however,
may largely turn out to be a
non-event, as the central bank is widely expected to keep rates
unchanged after the surprise
25-basis-point cut announced earlier this month. Most expect the RBI to take the next rate cut only after the Union
Budget.
