FMCG Stocks Outlook
for the week – 18 to 22.07.2016
(Seen sideways to
weak, HUL earnings eyed)
The shares of fast moving consumer goods companies are seen
trading sideways-to-weak next week
due to lack of cues and tracking movement in the broader
market. The market will eye Hindustan
Unilever Ltd's Apr-Jun results, which will lend cues to the
consumer goods stocks.
HUL's net profit for Apr-Jun is seen rising 9.4% on year to
11.6 bln rupees on the back of volume
growth and margin expansion. Net sales of the company are
likely to rise 7.5% on year to 85.7 bln
rupees on the back of 3-6% volume growth. We expect the
company's operating margins to be in the
range of 17.3-20.1%. A pick-up in the progress of monsoon
rains over the past few days has improved sentiment for FMCG stocks.
