Revamped distribution, portfolio may help Emami, TGBL, Jyothy, Bajaj stocks

While major companies in the FMCG sector have over the last two years clocked an average sales growth of over 6 per cent, the growth for the four underperformers is between 0.8-1.4 per cent

Prior to the recent correction, fast moving consumer goods companies have been among the best-performing stocks on the back of a recovery in volume growth as well as expectations of an uptick in rural spending. However, within the FMCG pack, four companies–Emami, Tata Global Beverages, Jyothy Laboratories (Jyothy) and Bajaj Corp–have consistently been underperforming on the returns front.

While year-to-date returns for Emami, Tata Global Beverages and Bajaj Corp are in the negative, Jyothy Laboratories (Jyothy) has barely managed to push into the positive territory. Shareholders have lost 10-30 per cent in the first three stocks since January this year while