FMCG Stocks Outlook
Consolidation on cards, all eyes on key earnings
This story was originally published at 22:29 IST on 24 January 2025
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MUMBAI – Having outperformed the Nifty 50 this week, the Nifty FMCG index may take a breather in the upcoming week. Shares of fast-moving consumer goods companies are expected to consolidate in the coming week, Mugilan K., technical analyst at DBS Cholamandalam Securities, said. A consolidation would not exactly mean a correction, Mugilan said, as he expects to see positive sentiment for the sector in the near term.
The slowdown in urban consumption, along with a gradual recovery in rural demand, led to muted growth for companies in the December quarter, as in the September quarter. Growth in smaller packs appears to be higher, reflecting the current macroeconomic situation, analysts have noted. FMCG bellwether Hindustan Unilever's home-care and beauty and well-being segments outperformed the others, while the personal care business declined due to inflation and a delayed winter.
On Wednesday, Hindustan Unilever posted strong results for the December quarter. The company expects growth in rural demand to be more robust than in urban areas. The premium segment, such as skin cleansing, has seen a fall in demand due to higher inflation and unemployment in urban areas, Soham Samanta, FMCG analyst at Centrum Broking, said.
Large-cap FMCG companies such as Nestle India and Tata Consumer Products are scheduled to release their financial results next week. Tata Consumer Products is expected to report 17% on-year rise in net profit and around 16% increase in revenue on a consolidated basis, based on an average of analyst estimates collated by Informist. The net profit of Nestle India is likely to rise 8.3% on year and its revenue is also expected to increase around 16% in the reporting quarter.
The Nifty FMCG index rose this week after falling for two consecutive weeks and gained nearly 0.5% over the week. Investors await the upcoming Union Budget, due to be presented Feb. 1, for any changes in income-tax slabs, Ganesh Angaj, technical equity analyst at NVS Brokerage, said. Angaj expects the index to face resistance at 57785 points and to find support at 55780 points.
Shares of Adani Wilmar fell around 4% ahead of its earnings disclosure next week. Colgate India, Dabur, and Marico are among the other FMCG companies slated to announce their December quarter financials during the week.
TOP HEADLINES
* Earnings Review:United Spirits PAT rises 36% YoY to INR 5 bln on volume surge
* Patanjali Foods gets FSSAI notice to recall packaged red chilli powder batch
* P&G Hygiene changes financial year to Apr-Mar from Jul-Jun
* Earnings Outlook: Higher input costs to weigh on Godrej Consumer in Oct-Dec
* Analyst Concall: Minimalist to be key in premium portfolio shift, says HUL
* HUL sees rural demand growing faster vs urban; demand for small packs rises
* Earnings Review: Pureit divestment helps HUL beat Street view amid low demand
* HUL to acquire 'Minimalist' brand owner Uprising Science
* HUL to buy Vishwatej Oil's palm undertaking for localisation
* HUL to list ice cream business on exchanges; board OKs 1:1 share ratio
* Unilever in pact with Telangana govt to set up palm oil refinery
* With more than INR 20 bln dues, NCLT orders Shakti Bhog Foods' liquidation
* Earnings Outlook: Slow volume growth, high input costs to weigh on HUL
* Analyst Concall: Zomato sees Blinkit EBITDA loss continuing on adding stores
* Earnings Review:Zomato PAT contracts for first time since turning profitable
* United Breweries to resume beer supply to Telangana Beverages Corp
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Adani Wilmar | 251.85 | (-)6.00 | 273.80 | 239.80 |
| Britannia Industries | 5101.55 | 5.10 | 5169.10 | 4979.40 |
| Colgate-Palmolive (India) | 2751.90 | 2.50 | 2807.90 | 2668.10 |
| Dabur India | 521.65 | (-)0.80 | 530.80 | 514.00 |
| Emami | 551.30 | (-)2.40 | 571.90 | 536.40 |
| Godrej Consumer Products | 1130.35 | (-)4.80 | 1157.10 | 1112.00 |
| Hindustan Unilever | 2368.10 | 0.60 | 2415.10 | 2299.50 |
| ITC | 441.60 | 0.30 | 447.80 | 435.90 |
| Jyothy Labs | 368.55 | (-)7.30 | 378.10 | 359.30 |
| Marico | 666.20 | 0.30 | 676.50 | 658.20 |
| Nestle India | 2207.90 | (-)0.40 | 2239.60 | 2174.30 |
| Procter & Gamble Hygiene and Health Care | 14600.00 | (-)1.00 | 14833.30 | 14308.30 |
| Tata Consumer Products | 992.35 | 4.00 | 1011.90 | 976.70 |
| Varun Beverages | 541.70 | (-)2.60 | 554.20 | 530.60 |
| Nifty FMCG | 56069.35 | 0.50 | 56716.40 | 55355.50 |
| Nifty 50 | 23092.20 | (-)0.50 | 23460.50 | 22865.90 |
| S&P BSE Sensex | 76190.46 | (-)0.60 | 77316.90 | 75528.50 |
End
Reported by Simran Rede
Edited by Rajeev Pai
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