Share Market Today: The FMCG index continued to consolidate during the month of September. The NIFTY FMCG index was traded at almost 56500 levels is only 0.7% higher. Despite announcements about the GST reforms. Among stocks, while Britannia Industries and Dabur India share price have risen to 7%, ITC and Marico share flat are almost flat. Hindustan Unilever Ltd (their) share price is actually slightly lower. The analyst is vigilant about the multitude of factors to comply with the demand, namely the upcoming festive season, rural recovery helped by good monsoon, which, among other things, has inflation falling inflation. In the past two to three years, poor consumption has been in the back of the commodity inflation -driven price increases. The price increases exceeded revenue growth according to analysts who led to impact. However, this obstacle would now be partially mitigated by the deflationary effect of the GST rate reduction. In addition, the recent decrease in personal income tax, the approaching payment commission, the beneficial basis for urban consumption, relieving commodity prices (tea palm, coffee) and a healthy monsoon in the next 12 to 15 months is positive for FMCG. Here’s what analysts say analysts at Kotak Institutional Equities said they expect volume/mixture-led income growth to start from the third quarter. Choosing food categories (such as Namkeen and Biscuits) can also see some disorganized-to-organized shifts, as the lower GST rate can lower the price gap. Furthermore, the GST rate cut would provide some space for price increases in the medium term (second half FY 2027 and FY2028). We expect the majority of businesses to give the benefit to customers (anti-profit supply) in the form of increased grammar, especially in price packs, Kotak added. However, according to analysts, it still has to be seen whether companies are adjusting prices to push premise. Meanwhile, the analysts with antique stockbrokers believe that the GST rate cut is expected to drive volume growth (improved to the mid-high single digit) over the majority of FMCG businesses. Depending on the portfolio mixture, the benefit is likely to be communicated to the consumers by the grammatical (in lower SKUs) and price cuts (in larger suits). They prefer GCP, Marico and Emami in the consumer staples. Briton, Nestle and Colgate Palmolive (India) Ltd. is expected to be the most important beneficiaries of GST reforms, followed by Dabur India and Hindustan lever according to Kotak, but there are also a few words of caution. The FMCG sector, including giants such as them and Nestle, may experience a slower, more subdued reaction despite the rate reduction on necessities such as soap and toothpaste of 18% to 5%, Divam Sharma founder and fund manager at Green Porfolio PMS said. Their multifaceted distribution networks involving countless intermediaries can leak efficiency profit along the road, and it takes north of one to two years for full earnings growth to reflect in shares, Sharma added. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not coin. We advise investors to check with certified experts before making investment decisions.
-
-
-
-
