FMCG Stocks Outlook
Seen down next week; Britannia Jul-Sept results eyed
This story was originally published at 21:28 IST on 8 November 2024
Register to read our real-time news.Informist, Friday, Nov. 8, 2024
MUMBAI – Shares of fast-moving consumer goods companies are seen down next week as Jul-Sept earnings have been below expectation with these companies facing the brunt of slower urban demand. However, hope of better rural demand ahead as the monsoon has been above average may keep losses in check.
Some analysts have shown concern over some large FMCG companies correcting their inventories with dealers due to muted demand. Earlier in the week, Incred Equities removed Dabur India from its list of high-conviction stock ideas due to intense competition and channel inventory correction.
Investors will now look at Jul-Sept earnings of Britannia Industries, Jyothy Labs, and Honasa Consumer for cues related to demand in the sector. The Nifty 50 company, Britannia, will report its earnings on Monday. It is expected to report a consolidated net profit of INR 6.3 billion rupees, up nearly 8% on year, according to an average of estimates from 13 brokerages. This net profit growth is expected to come on the back of higher sales volume and market share gains during the quarter.
The overall weakness in the market may affect FMCG companies' stock prices next week. Donald Trump's win in the US presidential election earlier this week has raised concerns that flows will move to the US on hopes of better earnings prospects.
TOP HEADLINES
* Emami Jul-Sept consol net profit rises 19.1% on year to INR 2.13 bln
* Honasa Consumer launches new moisturising product range across brands
* CCL Products Jul-Sept consol net profit rises 21.5% on yr to INR 739.54 mln
* Based on Marico plea, HC bars Alpino Health from advertising against oats
* PRESS: Rural demand for FMCG continues to grow faster than urban markets
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 | 333.65 | (-)3.00 | 349.80 | 324.00 |
| Britannia Industries | 5747.15 | 1.00 | 5878.50 | 5575.90 |
| Colgate Palmolive India | 2870.90 | (-)6.40 | 2940.00 | 2828.80 |
| Dabur India | 531.50 | (-)2.00 | 538.10 | 525.30 |
| Emami | 669.85 | (-)6.50 | 715.70 | 638.20 |
| Godrej Consumer Products | 1251.05 | (-)1.90 | 1271.80 | 1232.50 |
| Hindustan Unilever | 2507.70 | (-)1.20 | 2544.70 | 2448.80 |
| ITC | 478.05 | (-)2.50 | 483.90 | 471.70 |
| Jyothy Labs | 488.65 | (-)7.40 | 495.90 | 482.40 |
| Marico | 629.85 | (-)2.50 | 640.80 | 621.90 |
| Nestle India | 2295.65 | 0.60 | 2323.40 | 2245.00 |
| Procter & Gamble Hygiene and Health Care | 15553.20 | (-)4.30 | 16009.70 | 15271.70 |
| Tata Consumer Products | 992.95 | (-)1.10 | 1010.50 | 966.70 |
| Varun Beverages | 591.55 | (-)2.80 | 604.30 | 580.70 |
| Nifty FMCG | 58359.40 | (-)1.80 | 58792.10 | 57638.50 |
| Nifty 50 | 24148.20 | (-)0.60 | 24373.20 | 23954.20 |
| S&P BSE Sensex | 79486.32 | (-)0.30 | 80160.20 | 78780.40 |
End
Reported by Anshul Choudhary
Edited by Vandana Hingorani
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