Godrej Defies Sector Slump

Stocks of soap and detergent companies have been moving in a mixed trend with some falling, some rising and some remaining constant.

The only gainer was Godrej Consumer Products which closed the day today at Rs 105.70, up by over 13 per cent since the beginning of July.

HLL, the biggest soapmaker, has slipped since the beginning of July by over 9 per cent to end the day today at Rs 175.50. Gillette India ended the day today at Rs 289, down 18.66 per cent while JL Morison finished at Rs 17.65, down a marginal 0.2 per cent in the last three months. Muller and Phipps closed at Rs 67.10, down by 43.51 per cent while Reckitt and Benckiser closed at Rs 241.85, down 2.91 per cent.

Procter & Gamble ended the day at Rs 390, down by over 13 per cent in the last three months while Vashisti Detergents closed at Rs 12, down 32.58 per cent. Nirma, another leader in the detergent market has fallen by over 8 per cent to end the day today at Rs 240.25.

Manufacturers of linear alkylybenzene (LAB), a key ingredient in soaps and detergents, have been facing a squeeze in their margins due to a hike in the price of benzene, an important raw material.

Detergents and soaps may see an eventual price hike, if the prices of LAB start to rise which are currently stagnant despite increasing prices of benzene.