Stocks purchased by FMCG: Hul, Godrej Consumer, UBL in 5 long-term stock drafts at Anand Rathi
FMCG Stock Purchase: As the country’s massive fast-moving consumer goods (FMCG) sector shows signs of recovery (especially in rural areas), Analyers can identify profit opportunities for the industry.
Anand Rathi broker analysts highlighted several FMCG stocks that could give returns in future semesters.
FMCG department performance
According to the broker, the FMCG sector rose 10.7% year-on-year in the fourth quarter of fiscal 4, up from 10.6% in the previous quarter. Although volume growth fell to 5.1%, price growth also increased to 5.6% from 7.1% in the previous quarter.
It is worth noting that the market in rural areas outperforms urban areas, with a batch growth of 8.4%, almost four times higher than urban areas (2.6%). This is the fourth quarter where rural performance is increasing.
Early hair risk may affect summer demand
Analysts warned by brokers could impact demand for summer center products in April and May, such as soft drinks, ice cream and skin care products.
While some summer product manufacturers may face short-term challenges, brokers remain optimistic about the overall recovery of demand, especially in rural areas.
The impact of investment in inflation on the industry
The pressure on the edge fell in the fourth quarter as input costs of key raw materials rose, such as palm oil, cocoa, milk, tea and wheat. However, commodity prices fell, and price increases expected in the second half of FY25 and second half of FY26.
What is input inflation?
Inflation also known as cost-volume inflation refers to the rise in production costs by higher prices of raw materials, labor, transportation or energy, which in turn raises the price of the final commodity.
How fast is business growing
According to the brokerage, modern e-commerce and fast business platforms grew 40% in the fourth quarter among metropolitan cities.
What should long-term investors do?
Analysts noted that most major fast-moving consumer goods stocks have risen 5% to 20% in the past three months after the decline in the past six months. Meanwhile, Dabur and Colgate exhibit flat to slightly negative performance. As these analysts say several companies have been standardized to historical averages and are expected to receive future returns.
They (analysts) estimate revenue growth of 9% in fiscal 25-27 and revenue growth of 14%.
Analysts bullish on Hul, Godrej Consumers, UBL, other stocks; Check Target
Anand Rathi proposed several stocks in the FMCG industry, including Hindustan Unilever Ltd (HUL), Godrej Consumer Products Limited (GCPL) and United Breweries Ltd (UBL). Here are the analyst’s recommendations and their respective goals:
HUL Share Price Target
The brokerage suggests buying HUL shares at Rs 2,840.
Godrej consumer product sharing price target
For Godrej consumer stocks, brokers have a “buy” stance, with the goal of Rs 1,430 per share.
EMAMI Shared Price Target
Analysts recommend buying EMAMI shares for Rs 840.
Zydus Wellness Share Price Target
Anand Rathi recommends buying Zydus Wellness shares at a target of Rs 2,570 per share. The broker suggested buying Bector Food Shoars Mr at a goal of Rs 1,875.
Bector Food Share Engust Target
The broker suggested buying Bector Food Shoars Mr at a goal of Rs 1,875.
(Disclaimer: The views/advices/advices expressed here in this article are only by investment experts. Zee Business recommends that its readers consult their investment advisors before making any financial decisions.)
