 "BSE FMCG index nears 52-week low; Dabur, Godrej Consumer slips up to 9%")
Shares of fast moving consumer goods (FMCG) companies continued to reel under pressure with most of the frontline stocks from the sector trading at their respective 52-week lows as operating environment in the near-term is likely to remain challenging due to rising commodity inflation.
Godrej Consumer Products plunged 9 per cent, while Emami and Dabur India slipped 7 per cent and 6 per cent, respectively, on the BSE in Monday’s intra-day trade. Britannia Industries, Procter & Gamble Hygiene & Health Care, CCL Products, Marico and Hindustan Unilever (HUL) were down between 4 per cent and 5 per cent on the BSE.
The S&P BSE FMCG index hit a 10-month low of 12,355, down 3 per cent in intra-day trade. It was trading close to its 52-week low of 12,091 hit on March 15, 2021. In the past one month, the index has fallen 9 per cent in line with the benchmark S&P BSE Sensex. Including HUL, Britannia Industries, Dabur India and Gillette India, total eight stocks from the index hit their respective 52-week lows today.
FMCG market growth is soft with rural volume pressure more acute than that of urban markets. The near-term operating environment remains challenging, with higher inflation expected sequentially.
Among the individual stocks, HUL hit a fresh 52-week low of Rs 1,942, down 4 per cent in intra-day trade today. In the past two weeks, the stock tanked 15 per cent, as compared to a 9 per cent decline in the S&P BSE Sensex.
Analysts at HDFC Securities said near-term demand outlook for HUL continues to be a concern, with rural India witnessing an inflation-led slowdown. Elevated input costs, besides slowing down growth, continued to impact the gross margin, which contracted by 186bps year-on-year in December quarter (Q3FY22). Given the inflationary environment, the brokerage firm expects the gross margin pressure to continue in H1FY23 despite staggered price hikes.
Godrej Consumer Products plunged 9 per cent, while Emami and Dabur India slipped 7 per cent and 6 per cent, respectively, on the BSE in Monday’s intra-day trade. Britannia Industries, Procter & Gamble Hygiene & Health Care, CCL Products, Marico and Hindustan Unilever (HUL) were down between 4 per cent and 5 per cent on the BSE.
The S&P BSE FMCG index hit a 10-month low of 12,355, down 3 per cent in intra-day trade. It was trading close to its 52-week low of 12,091 hit on March 15, 2021. In the past one month, the index has fallen 9 per cent in line with the benchmark S&P BSE Sensex. Including HUL, Britannia Industries, Dabur India and Gillette India, total eight stocks from the index hit their respective 52-week lows today.
FMCG market growth is soft with rural volume pressure more acute than that of urban markets. The near-term operating environment remains challenging, with higher inflation expected sequentially.
Among the individual stocks, HUL hit a fresh 52-week low of Rs 1,942, down 4 per cent in intra-day trade today. In the past two weeks, the stock tanked 15 per cent, as compared to a 9 per cent decline in the S&P BSE Sensex.
Analysts at HDFC Securities said near-term demand outlook for HUL continues to be a concern, with rural India witnessing an inflation-led slowdown. Elevated input costs, besides slowing down growth, continued to impact the gross margin, which contracted by 186bps year-on-year in December quarter (Q3FY22). Given the inflationary environment, the brokerage firm expects the gross margin pressure to continue in H1FY23 despite staggered price hikes.
| COMPANY | LATEST | PREV CLOSE | LOSS(%) |
| Godrej Consumer | 667.75 | 725.30 | -7.9 |
| Dabur India | 507.30 | 539.45 | -6.0 |
| P & G Hygiene | 14170.05 | 14970.35 | -5.4 |
| DCM Shriram | 958.55 | 1012.50 | -5.3 |
| CCL Products | 385.05 | 406.55 | -5.3 |
| Britannia Inds. | 3200.00 | 3371.35 | -5.1 |
| Bombay Burmah | 889.00 | 934.65 | -4.9 |
| Emami | 455.25 | 478.00 | -4.8 |
| Tilaknagar Inds. | 66.80 | 69.95 | -4.5 |
| DFM Foods | 235.10 | 246.05 | -4.5 |
| Globus Spirits | 1317.35 | 1377.30 | -4.4 |
| AVT Natural Prod | 87.10 | 91.05 | -4.3 |
| Marico | 481.05 | 500.65 | -3.9 |
| Bannari Amm.Sug. | 2198.00 | 2286.10 | -3.9 |
| Heritage Foods | 301.15 | 312.40 | -3.6 |
| Hind. Unilever | 1947.65 | 2019.90 | -3.6 |
| Tasty Bite Eat. | 11238.05 | 11639.05 | -3.5 |
| Varun Beverages | 901.40 | 931.85 | -3.3 |
| Gillette India | 4933.00 | 5099.25 | -3.3 |
| United Breweries | 1297.70 | 1339.05 | -3.1 |
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