Business Standard

Packaged food firms may witness growth rebound soon, say analysts

While reports of slower sales growth in August pulled down share prices on Monday, analysts say medium term outlook remains healthy

Packaged food
Premium

Packaged food items | Photo: Wikipedia

Shreepad S Aute New Delhi
Investor sentiment towards packaged food majors — Nestlé, Britannia Industries (Britannia), and ITC — has taken a hit, following reports and notes by brokerages on slowing sales growth of packaged/read-to-eat products in August.

The impact was relatively sharper on Britannia and Nestlé, given their pricey valuations. While ITC fell 2 per cent on Monday, Britannia and Nestlé shed over 4 per cent each. The benchmark Sensex also lost 2.1 per cent. Analysts, however, do not see this as a major concern and believe corrections could be bought into.

Sachin Bobade, vice-president of Dolat Capital, says: “Volume growth in the June

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 22 2020 | 6:10 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com