FMCG Stocks Outlook
Seen in a range ahead of Nestle India Jul-Sept earnings
This story was originally published at 21:27 IST on 11 October 2024
Register to read our real-time news.Informist, Friday, Oct. 11, 2024
MUMBAI – Shares of fast-moving consumer goods companies are seen in a range next week ahead of Nestle India's Jul-Sept earnings, which are scheduled on Thursday. Analysts will look for cues on demand environment for the sector and the extent of impact of high prices of some commodities.
Nestle India's net profit for the September quarter may decline 3% on year to INR 8.8 billion due to rise in prices of key raw materials such as coffee, cocoa, and milk, according to the average of estimates by nine brokerages. At the same time, the company's revenue is seen up 6% on year at INR 53.20 billion.
Shares of several FMCG companies have declined in the past few weeks on concerns that floods in some areas may hurt demand in the coming quarters with food inflation posing a major risk for the sector. Reserve Bank of India Governor Shaktikanta Das also pointed to this risk in the monetary policy statement on Wednesday, saying that adverse weather conditions continue to pose risk to food inflation. The Nifty FMCG index was down for the third straight week, declining 5.8% during this period to close at 62080.20 points Friday.
Though analysts said there are near-term risks, they also said things are likely to get better in the medium to long term. "Low base of last year and good monsoon this year suggest recovery in rural demand is bound to happen. But, considering above average rainfall in some areas and risk of spike in food inflation, we may debate on the quantum of this recovery," Vishal Gutka, vice-president of institutional research at HDFC Securities, said. He said the negative effects of COVID-19 and hyperinflation are slowing down and high reservoir levels post monsoon bode well for the sector.
TOP HEADLINES
* Arbitration tribunal awards Patanjali Foods' 18.67 mln shr to Ashav Advisory
* Britannia Ind to acquire 6.04% stake in Suryaurja One for INR 8.75 million
* Britannia JV inaugurates cheese plant in Maharashtra, invests INR 2.2 bln
* Earnings Outlook: Input cost pressure may weigh on Nestle India Jul-Sept
* Mamaearth partners with Meesho; aims INR 1-bln accounting rate of return
* CCI OKs acquisition of non-food ops of Patanjali Ayurved by Patanjali Foods
* Emami buys another 1.22% shares in Helios Lifestyles, stake now at 98.3%
* Godrej Consumer sees low Jul-Sept consol EBITDA growth on high input cost
* FSN E-Commerce's consol revenue for Jul-Sept rises in mid-twenties
* Nestle India CMD Narayanan to retire Jul 2025; Manish Tiwary nominated as MD
* Adani Wilmar says Jul-Sept standalone revenue rose 16%, volume up 10%
* Dubai court rejects Honasa Consumer's appeal against attachment of assets
Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Adani Wilmar | 337.45 | 0.30 | 342.30 | 331.80 |
| Britannia Industries | 5978.50 | (-)3.70 | 6071.40 | 5914.60 |
| Colgate Palmolive India | 3689.65 | (-)1.40 | 3734.40 | 3610.90 |
| Dabur India | 570.85 | (-)0.30 | 577.40 | 565.90 |
| Emami | 730.25 | (-)1.70 | 754.80 | 716.70 |
| Godrej Consumer Products | 1315.70 | (-)2.10 | 1331.20 | 1303.20 |
| Hindustan Unilever | 2783.20 | (-)2.30 | 2823.00 | 2717.10 |
| ITC | 488.20 | (-)3.10 | 496.40 | 483.30 |
| Jyothy Labs | 527.25 | (-)2.30 | 542.80 | 518.20 |
| Marico | 685.50 | (-)0.70 | 698.90 | 674.60 |
| Nestle India | 2511.80 | (-)3.30 | 2535.90 | 2484.10 |
| Procter & Gamble Hygiene and Health Care | 16634.90 | (-)0.70 | 16907.40 | 16468.70 |
| Tata Consumer Products | 1113.10 | (-)1.50 | 1133.10 | 1091.70 |
| Varun Beverages | 592.35 | 2.30 | 601.30 | 581.60 |
| Nifty FMCG | 62080.20 | (-)2.10 | 62543.60 | 61617.90 |
| Nifty 50 | 24964.25 | (-)0.20 | 25079.60 | 24862.40 |
| S&P BSE Sensex | 81381.36 | (-)0.40 | 81819.50 | 81085.10 |
End
Reported by Anshul Choudhary
Edited by Ashish Shirke
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