FMCG Stocks
Outlook for the week – 20 to 24.07.2015
(Seen range bound trade next
week)
Stocks of fast moving consumer
goods companies are likely to witness range bound movement next
week amid consolidation in
broader markets. Hindustan Unilever will be in focus as the company
will release its Apr-Jun earnings
on Tuesday.
HUL is expected to post a 4%
year-on-year rise in its net profit to 11.02 bln rupees in the quarter
ended June as benign raw material
prices led to margin improvement. Net sales are expected to
increase 12% on year to 83.34 bln
rupees in Apr-Jun on the back of a 6-7% volume growth. Results
of HUL will give some indication
of the demand scenario for consumer goods and set the tone for
the sector.
Asian Paints will also detail its
Apr-Jun earnings on Tuesday. Asian Paints' consolidated net profit is
seen rising 20% year-on-year to
4.06 bln rupees in Apr-Jun. The paint major's consolidated net sales
during the quarter are expected
to increase 9% on year to 36.21 bln rupees.
After a good start, monsoon rains
have been below normal since the past three weeks, which has
raised concerns over lower kharif
crop output and in turn on likely build up of inflationary pressures.
As per data from the India
Meteorological Department, monsoon rainfall in the country was 14%
below normal in the week ended
Jul 15, 51% below normal in week to Jul 8 and 14% below normal
in the week ended Jul 1.
