FMCG Stocks Outlook for the week – 27 to 31.07.2015
(Stock-specific
movement; earnings eyed)
Stock-specific
movement is likely in the fast-moving consumer goods sector next week, with a
number
of companies declaring their earnings for the quarter ended June.
ITC,
Colgate Palmolive India, Godrej Consumer Products, and Jyothy Laboratories are
among the key players releasing earnings next week. Index-heavyweight ITC is
expected to report an 8% onyear rise in Apr-Jun net profit to 23.60 bln rupees,
and a 3% rise in net sales to 94.03 bln rupees.
Godrej
Consumer's consolidated net profit is likely to increase 33% on year to 1.91
bln rupees in
Apr-Jun,
while net sales is seen up 8% at 20.30 bln rupees. Hindustan Unilever's Apr-Jun
results
detailed
earlier this week, failed to cheer market participants, as the numbers came in
below
estimates.
The stock registered an over 1% weekly fall.
The
company said in a post-earnings media conference call that it is keeping an eye
on acquisitions in the 'naturals' category, which essentially means products
with natural ingredients or ayurvedic products.
Market
participants will continue to eye progress of monsoon rains for more cues.
After a weak
patch,
the monsoon has shown signs of revival in last couple of days and if rainfall
persists in the
coming
days, it will bode well for the FMCG sector, as monsoon is crucial for rural
demand.
As
per data from the India Meteorological Department, India has received 361.88 mm
of rains
during Jun 1-Jul 24, 6% below normal.