FMCG Stocks Outlook for the week (04.06.2012 - 08.06.2012)
Stocks of fast-moving consumer goods companies may move in a narrow range in the week ahead as the weakness in the broad market may prompt investors to stay put in these stocks, which are generally considered a defensive bet in a falling market. The clear demand outlook for products of these companies and their good set of numbers in the Jan-Mar quarter are also likely to support these stocks. This week, while the BSE's FMCG index remained flat, the National Stock Exchange's Nifty and BSE's Sensex lost 1.6% each. Yesterday, Macquarie upgraded Hindustan Unilever's stock to outperform from underperform, as it sees the company's growth improving due to such factors like improvement in sales of its high margin products and improved market and cost competitiveness. The outperform rating on Dabur India and Emami and has a underperform rating for Colgate Palmolive India scrip. In its report on the Indian FMCG sector, Macquarie has observed that the demand outlook for products will improve over the next five years with consumers seen upgrading to high-margin consumer care products.
No comments:
Post a Comment