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Informist, Friday, Jul. 25, 2025

NEW DELHI – Fast-moving consumer goods companies are likely to see stock-specific movement next week as the earnings season gains steam. At least six of the Nifty FMCG index constituents are set to announce their June quarter earnings in the coming week. Varun Beverages will report its results Tuesday, followed by Dabur India, Emami, Radico Khaitan, and sectoral bellwether Hindustan Unilever on Thursday. Another Index heavyweight, ITC, will declare its earnings Friday.  

In the near term, analysts are fundamentally positive on the sector amid growth factors seen for improvement in consumption demand. "We expect the FMCG sector to perform well going into the second half of this financial year, that is the third, fourth quarter. That is when, at the ground level, you will see green shoots in terms of demand coming up," said Gaurang Shah, senior vice president at Geojit Investments Ltd. Besides an uptick in demand for FMCG products, Shah expects lower crude oil prices and input costs to aid business of companies in the sector.

This week, after Nestle India posted weak results for the June quarter, Prabhudas Lilladher Institutional Equities downgraded its rating on the stock to 'hold' from 'accumulate' and cut the target price to INR 2,392 from INR 2,550 earlier. This was on account of a premium valuation and pressure seen for the FMCG major's Milk Products & Nutrition category. Meanwhile, YES Securities revised the target price for United Breweries to INR 1,800 from INR 1,950 earlier while maintaining a 'sell' rating on the stock. On Tata Consumer Products, the brokerage upgraded its rating to 'buy' from 'add' with a marginal revision in the target price to INR 1,260 from INR 1,280 earlier. "Price hikes already taken in tea portfolio and expectation of softer tea input cost will continue to aid margin recovery in FY26," Yes Securities said in a note.

"Earnings have been disappointing for some of the FMCG companies who have declared the numbers, primarily because of certain constraints in terms of volume growth, margin squeeze, and of course the overall demand-supply side kind of a scenario," Shah said adding that investors with a long-term time horizon would see the recent correction as a buying opportunity in "strong" FMCG stocks.

Friday, the Nifty FMCG Index closed almost 1% lower at 54579.95 points, falling for a sixth consecutive session. The index has fallen 3.4% through the week, considerably higher than the Nifty 50, which has fallen 0.5%. All the Nifty FMCG index constituents ended the day in red, barring United Breweries, which closed 0.7% higher.

TOP HEADLINES

* ITC focussing on organic, healthy foods portfolio, says CMD Puri at AGM
* LT Foods Apr-Jun consol PAT rises 10% YoY to INR 1.69 billion
* Earnings Review: Nestle India Jun qtr PAT falls 12% YoY, misses Street view
* Bikaji Foods to form 50:50 JV with Nepal's Chaudhary Group, set up new unit
* Analyst Concall: Tata Consumer hopes tea margins rebound to normal by Q3
* Earnings Review: Tata Consumer consol PAT 15% up on strong tea, salt sales
* Bikaji Foods Apr-Jun consol net profit rises nearly 3% YoY to INR 598.96 mln
* Earnings Review: Tata Consumer PAT 15% up owing to strong tea, salt sales
* United Breweries Apr-Jun PAT rises 6% YoY to INR 1.84 billion
* Earnings Outlook: Nestle India Q1 sales seen higher on price hikes, PAT down
* Earnings Review: Colgate Q1 PAT, sales slump on low demand, high competition
* IPO Alert: Milky Mist Dairy Food files DRHP with SEBI for INR-20.35-bln IPO
* Tilaknagar Ind says no word from Andhra police on naming co in liquor scam
* Andhra police charge sheet says Tilaknagar Ind, others paid bribes for orders
* Earnings Outlook:Slow demand may hurt Colgate's Q1 results; margin view hazy
* Adani Enterprises exits AWL Agri Business, sells remaining 10.4% stake

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:

End

Reported by Shakshi Jain

Edited by Akul Nishant Akhoury

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