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Informist, Friday, Jul. 4, 2025

NEW DELHI – Analysts are bullish on shares of fast-moving consumer goods companies and expect some positive movement next week. Shares could also take cues from an optimistic update provided by FMCG companies late Friday for the June quarter, which spoke of a sequential revival in volume growth.

However, a Mumbai-based technical analyst remains cautious about the Nifty FMCG sectoral index's near-term prospects. He expects the index to correct 5-7% in the near-to-medium term. The sectoral index closed 0.4% higher Friday at 54735.60. For the week, the index lost 0.7%, mirroring the benchmark Nifty 50. While a fall of 4% and 3.1% in shares of United Spirits and Tata Consumer Products led the Nifty FMCG index down, gains of 2.8% in Colgate-Palmolive (India), 1.8% in Dabur India, and 1.6% in Radico Khaitan provided support.

In its quarterly update, Dabur India said the FMCG sector saw a sequential recovery in demand in the June quarter along with an uptick in volume growth, especially in urban markets. Consumer staple companies had flagged the dwindling urban demand which was dragging down their overall volume growth. Dabur India expects a consolidated revenue growth in the low single digit for the June quarter, due to a decline in its beverages business.

Godrej Consumer Products in its quarterly update said it expects its standalone business to deliver high-single-digit value growth and mid-single-digit underlying volume growth. "Volume growth has been strongly competitive and is sequentially improving," the company said. Its consolidated revenue is expected to grow in double digits, driven by a high-single-digit underlying volume growth.

Analysts expect the early onset of the southwest monsoon to have affected summer-centric categories like beverages and cooling products such as hair oil and talc. In addition, input price pressures are expected to weigh on the margins of FMCG companies, with most companies expected to report a contraction in profitability, Elara Securities said in a note.

Some companies like Marico, Tata Consumer, Mrs Bectors Food, and Britannia are expected to post double-digit revenue growth for the quarter largely driven by pricing in categories such as coconut oil, edible oil, tea, salt, and biscuits, according to Elara.

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Following are the resistance and support levels for the stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Anand JC

Edited by Nishant Maher

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