FMCG stocks outlook for the week – 21 to 24.12.2015
(Seen positive next week as demand
picking up)
( www.rupeedesk.in )
Stocks
of fast-moving consumer goods companies are seen positive next
week
as the expect rise in winter demand for cold creams and health
supplements
to boost sales while fall in crude oil prices will lift margins
in
detergents and personal care segment.
The
fall in crude oil prices will bring down cost of several derivatives
of
crude which are used by FMCG companies. The average price of the
Indian
basket of crude oil has fallen 14% in Oct-Dec so far, as compared
with
Jul-Sep. Since Dec 1, the Indian basket is 20% cheaper now.
Demand
for winter products like cold creams, skin care products and
health
supplements like Chyawanprash is also picking up, which augurs
well
for companies like Hindustan Unilever Ltd, Marico Ltd and Dabur
India
Ltd.
Weak
demand has been a major concern for FMCG companies in the last
few
quarters. Rural demand remains weak due to a poor monsoon, but
urban
demand has seen some improvement in recent months.
Hindustan
Unilever and Marico will continue to see positive movement
next
week. Tata Global Beverages and Godrej Consumer Products are
also expected to trade with a positive bias.