Analysts expect HUL to report double-digit revenue driven by price hikes and anticipate pricing growth to impact volume growth, with volume growth likely to be close to mid-single digits.
Tata Consumer Products share price: JM Financial analysts also expect margin delivery to improve, with full benefits of the price hikes in tea and salt to be seen in Q3FY27.
Nestle India on Thursday reported a 36.3% YoY growth in Q2FY27 net profit at ₹1,026.70 crore, backed by a 20.5% YoY surge in sales to ₹6,782.17 crore.
Analysts said higher sugar prices and input cost inflation could weigh on FMCG stocks in the near term, with the impact varying across companies depending on their product mix and pricing power.
Rising input costs are likely to put pressure on operating margins for Indian fast-moving consumer goods companies in the September quarter, even as resilient demand and growth in key product categories support revenue expansion. A sharp rise in crude oil and its derivative products used in packaging, along with a persistent inflationary trend in various commodities and deficit rainfall, has increased cost pressures across companies depending on their product mix, pricing power and cost-saving measures. A report from brokerage ICICI Direct said higher crude and crude-derivative prices, coupled with increases in other key input costs, are likely to affect earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of most home and personal care companies. "Spike in the crude oil/crude derivative prices coupled with increase in the other key input prices will have impact on the EBITDA margins of most of the home care and personal care companies under coverage," it
Top buyers in ITC's block deal on Thursday: Fidelity Advisor Series VIII-Fidelity Advisor Overseas Fund, ICICI Prudential MF, SBI MF, Nippon India MF and Citigroup Global Markets Singapore Pte.
Dabur India expects double-digit revenue growth at a consolidated level backed by healthy growth in Home & Personal Care and Food & Beverages segments.
Citi upgraded ITC stock to 'BUY' from 'SELL' despite near-term headwinds as it finds the risk-reward favourable.
Analysts flag that over the years the market closed the valuation gap built for double-digit growth in these FMCG stocks, as earnings remained muted owing to tepid volume growth and high inflation.
Emami's board approved a share buyback for an aggregate amount not exceeding ₹282 crore at a price not exceeding ₹475 per equity share, via the open market through the stock exchange mechanism.
In the Nifty FMCG basket 13 stocks advanced while only 2 declined. Intraday, the FMCG index was up 1.82 per cent to 45,645.20.
In the past month, the BSE FMCG index underperformed the market by falling 3.3 per cent, compared to a 1.5 per cent fall in the BSE Sensex.
At the bourses, meanwhile, investors sought refuge in realty, pharma and the metal pack. Their respective indexes on the NSE gained up to 17 per cent thus far, ACE Equity data shows.
Analysts said, brent crude and palm oil respectively remained elevated by 47% and 13% on year-to-date (YTD) basis, which might keep margins under pressure for FMCG sector.
Tractor sales, the JM Financial study said, were most sensitive to El Nino conditions, recording weaker sales growth during the La Niña period, which is associated with excess rainfall.
Automobile, and fast-moving consumer goods (FMCG) companies are expected to post a mixed performance in the first quarter of FY27, with healthy demand offset by margin pressure from higher input costs
Aamar Deo Singh of Angel One said that it is still early to turn decisively bullish on FMCG and that "investors should wait for the monsoon outcome and further confirmation of a sustained recovery."
In the past one month, the FMCG index has underperformed the market, by falling 5 per cent, as against 2.3 per cent decline in Nifty 50.
Having witnessed a prolonged period of benign inflation in the last decade, we should have expected FMCG companies to witness great volume growth, if not value. However, the opposite has been true
Ajit Mishra of Religare Broking flags that ITC's overall chart structure remains negative, and the stock is likely to consolidate further in the near-term.