FMCG Stocks Outlook
Seen down next week; urban demand remains muted
This story was originally published at 20:29 IST on 21 March 2025
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MUMBAI – Shares of fast-moving consumer goods companies are likely to face some selling pressure next week due to muted consumption trends in urban areas, analysts said. They anticipate no major improvement in earnings for the March quarter, with volumes likely remaining subdued. Investors will track the upcoming monsoon season, a crucial factor for the sector, as it influences agricultural output.
FMCG companies are expected to report flat-to-2% volume growth in the March quarter as demand and margins remain under pressure, according to a research analyst from a domestic broking firm.
The increase in palm oil prices and the rise in import duties announced in September are likely to impact soap manufacturers such as Hindustan Unilever and Godrej Consumer Products, Nirmal Bang Institutional Equities said in a report. A sharp on-year rise in tea and coffee prices in the wholesale price index is likely to affect the margins of companies such as Nestle India, Tata Consumer Products, and Hindustan Unilever. The brokerage expects a potentially strong summer season in 2025-26 (Apr-Mar), driven by heatwaves and the weak base of the preceding two summer seasons.
However, the FMCG sector is expected to report a 6-8% growth in revenue in FY26 on the back of a 4-6% volume growth, CRISIL Ratings said in a report Wednesday. Additionally, these companies may also take leverage of realisations to see up to a 2% uptick in their revenue, the rating agency said.
The Nifty FMCG index is likely to find support at 51600 points and face resistance at 54000 points, according to Brijesh Ail, head of technical and derivatives at IDBI Capital Markets & Securities. The index rose to a one-month high of 53096.15 points Friday, but came slightly off highs to close at 52986.05 points, up 0.2%.
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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 | Resistance | Support |
Adani Wilmar | 265.25 | 7.40 | 274.30 | 250.00 |
Britannia Industries | 4814.00 | 1.80 | 4884.50 | 4751.30 |
Colgate Palmolive India | 2401.10 | (-)0.40 | 2445.70 | 2362.70 |
Dabur India | 506.80 | 1.20 | 514.20 | 494.20 |
Emami | 576.00 | 2.50 | 595.10 | 556.80 |
Godrej Consumer Products | 1111.95 | 8.40 | 1135.40 | 1082.30 |
Hindustan Unilever | 2246.20 | 3.30 | 2271.80 | 2213.00 |
ITC | 405.55 | (-)1.60 | 410.70 | 399.10 |
Jyothy Labs | 345.50 | 4.40 | 355.70 | 331.30 |
Marico | 630.80 | 4.00 | 638.00 | 623.90 |
Nestle India | 2268.85 | 3.50 | 2301.70 | 2215.60 |
Procter & Gamble Hygiene and Health Care | 13859.80 | 3.50 | 14272.60 | 13234.10 |
Tata Consumer Products | 961.20 | 1.60 | 978.90 | 947.80 |
Varun Beverages | 537.95 | 10.20 | 560.00 | 522.00 |
Nifty FMCG | 52986.05 | 2.10 | 53343.20 | 52492.10 |
Nifty 50 | 23350.40 | 4.30 | 23565.20 | 23025.40 |
S&P BSE Sensex | 76905.51 | 4.20 | 77627.60 | 75734.20 |
End
US$1 = INR 85.9725
Reported by Simran Rede
Edited by Subhojit Sarkar
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