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Time of India
2 days ago
- Business
- Time of India
Improved consumption trends bring cheer to FMCG counters
Mumbai: Shares of fast-moving consumer goods (FMCG) firms advanced Monday after Godrej Consumer's quarterly business update pointed to improved demand prospects. Godrej is the third company after Dabur and Marico to signal a stronger-than-expected growth outlook, but some analysts warn against painting these performances as an industry-wide trend. "A sequential improvement in volume growth and revenue growth indicated by Godrej Consumer Products , Dabur and Marico led to renewed investor sentiment," said Ajay Thakur, research analyst - FMCG, Anand Rathi Institutional Equities. "A good monsoon is seen propping up rural demand and an uptick in urban demand also supports sentiment." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo The Nifty FMCG Index gained 1.7% on Monday, while the benchmark Nifty remained flat. Of the 15 stocks on the FMCG Index, 13 advanced and two declined. Agencies Godrej Consumer jumped 6.4%, leading the gains in FMCG stocks. Dabur gained 3.5%, while HUL and Emami rose over 2.5% each. Britannia Industries climbed 2.1%, and Varun Beverages and Tata Consumer advanced 1.7% and 1.5%, respectively. While the pickup in volumes is expected to stronger in the second half of FY26, gains might be limited to stocks that offer better growth prospects. "The positive guidance was largely for Godrej Consumer and Marico but since the FMCG stocks have been beaten down, the other stocks also rose in hopes of a recovery," said Amit Purohit, VP, Elara Capital. "Although second half is anticipated to be better, Q1 is expected to be muted." Live Events Godrej Consumer Products said in its quarterly update that the volume growth is improving from the previous quarter, and the company expects double-digit rupee revenue growth on the back of high single-digit volume growth. Dabur's growth guidance is softer than that of Godrej, but investors were expecting far worse. "There were expectations of flat to declining growth in Dabur, but the company expects low single-digit growth, which might be perceived optimistically in the otherwise lacklustre quarterly update," said Purohit. So far this year, the Nifty FMCG Index has declined 2%, while the benchmark Nifty has gained 7.7% in the same period. Thakur said he prefers Godrej Consumer among large cap FMCG stocks, while Dabur's valuations are attractive. Purohit said investors should focus on specific stocks in the sector based on their reported growth. "Godrej Consumer Products and Marico are clear standouts and as the market rewards growth, gains are likely in these stocks," said Purohit. "Other stocks may move up as the narrative around the government focus on consumption, good monsoon, and base effect to play out."
Economic Times
2 days ago
- Business
- Economic Times
Improved consumption trends bring cheer to FMCG counters
Mumbai: Shares of fast-moving consumer goods (FMCG) firms advanced Monday after Godrej Consumer's quarterly business update pointed to improved demand prospects. Godrej is the third company after Dabur and Marico to signal a stronger-than-expected growth outlook, but some analysts warn against painting these performances as an industry-wide trend. ADVERTISEMENT "A sequential improvement in volume growth and revenue growth indicated by Godrej Consumer Products, Dabur and Marico led to renewed investor sentiment," said Ajay Thakur, research analyst - FMCG, Anand Rathi Institutional Equities. "A good monsoon is seen propping up rural demand and an uptick in urban demand also supports sentiment." The Nifty FMCG Index gained 1.7% on Monday, while the benchmark Nifty remained flat. Of the 15 stocks on the FMCG Index, 13 advanced and two declined. Godrej Consumer jumped 6.4%, leading the gains in FMCG stocks. Dabur gained 3.5%, while HUL and Emami rose over 2.5% each. Britannia Industries climbed 2.1%, and Varun Beverages and Tata Consumer advanced 1.7% and 1.5%, respectively. While the pickup in volumes is expected to stronger in the second half of FY26, gains might be limited to stocks that offer better growth prospects."The positive guidance was largely for Godrej Consumer and Marico but since the FMCG stocks have been beaten down, the other stocks also rose in hopes of a recovery," said Amit Purohit, VP, Elara Capital. "Although second half is anticipated to be better, Q1 is expected to be muted."Godrej Consumer Products said in its quarterly update that the volume growth is improving from the previous quarter, and the company expects double-digit rupee revenue growth on the back of high single-digit volume growth. ADVERTISEMENT Dabur's growth guidance is softer than that of Godrej, but investors were expecting far worse. "There were expectations of flat to declining growth in Dabur, but the company expects low single-digit growth, which might be perceived optimistically in the otherwise lacklustre quarterly update," said Purohit. So far this year, the Nifty FMCG Index has declined 2%, while the benchmark Nifty has gained 7.7% in the same period. Thakur said he prefers Godrej Consumer among large cap FMCG stocks, while Dabur's valuations are attractive. ADVERTISEMENT Purohit said investors should focus on specific stocks in the sector based on their reported growth."Godrej Consumer Products and Marico are clear standouts and as the market rewards growth, gains are likely in these stocks," said Purohit. "Other stocks may move up as the narrative around the government focus on consumption, good monsoon, and base effect to play out." (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
27-06-2025
- Business
- Time of India
MNC mutual funds struggle to perform, lose 3% in 1 year. What's driving the underperformance?
Live Events With MNC theme based mutual funds losing out an average of around 2.94% in the last one year, a market expert mentions that as MNC funds have heavily invested in the underperforming sectors, their overall returns have naturally been impacted.'Over the past year, MNC funds have delivered returns much below their benchmarks. The Nifty MNC index has itself seen low returns. MNC funds invest mostly in companies that are part of the Nifty MNC index. This index is heavily weighted in two main sectors: FMCG at 35.13% and Capital Goods at 23.80%. Both these sectors have not done well over the past year,' Arjun Guha Thakurta, Executive Director, Anand Rathi Wealth Limited shared with to Thakurta, the Nifty FMCG Index, which fell nearly 3% over the past year, includes a 2.06% drop from April to May and a further 0.3% decline from May to June. Similarly, the S&P BSE Capital Goods Index fell around 2% in the past year and dropped 0.2% from May to June. Nifty India Manufacturing Index, which also reflects capital goods and industrial exposure, declined by nearly 5% over the last year and with MNC funds heavily invested in these underperforming sectors, their overall returns have naturally been impacted, Thakurta further adds that the MNC funds are also restricted to a relatively small universe of MNCs listed in India, which limits diversification and can lead to underperformance if the broader market rallies but MNC stocks do funds were the second biggest losing category in the said period after auto sector based funds lost 7.15% on an average in the same period. There were around five schemes in the MNC category that completed one year in the MNC Fund lost the most at around 9.75% in the last one year, followed by UTI MNC Fund which lost 2.68% in the said period. Aditya Birla Sun Life MNC Fund lost 1.65% in the mentioned lastly, SBI Magnum Global Fund and ICICI Prudential MNC Fund lost 0.59% and 0.04% respectively in the same time comparing the performance of MNC funds with that of Nifty50 where Nifty MNC has failed to beat Nifty 50 in 3 out of the past 5 years, and is lagging behind this year as well, Thakurta advises investors not to invest solely in any single sector, as it increases the concentration further advises investors to invest in broad based diversified equity funds such as market cap based funds and strategy based funds which gives exposure across the sectors, categories and market caps & helps to reduce the concentration risk associated with performance of any single sector and additionally strategy based diversification helps to ride across the market funds are benchmarked against NIFTY MNC - TRI which went down by 4.28% in the last one year. In the last three years, MNC based funds gave double-digit returns upto 17% with ICICI Prudential MNC Fund being the topper and SBI Magnum Global Fund offering the lowest return of around 13.36% returnA similar picture was seen in the returns offered by these schemes in the last five years. On the other hand, in the last three months, only two funds gave double-digit returns. Aditya Birla Sun Life MNC Fund and Kotak MNC Fund gave 12.24% and 10.68% returns respectively in the last three months. ICICI Prudential MNC Fund gave the lowest return of 5.96% in the last three observing the recent trends or returns offered by these funds, Thakurta said that the outlook for MNC funds remains cautious and while these funds appear to offer steady, long-term returns due to the strength of multinational companies, historical data suggests that strong outperformance is unlikely in the near term unless MNC stocks come back into favor or global conditions further added that even if these positive shifts occur, the performance of MNC funds is expected to remain cyclical rather than consistently strong and such funds are riskier than diversified funds due to their concentrated exposure therefore, investors are advised to avoid investing in a single sector and should opt for more diversified funds which invest across multiple sectors and market considered all MNC theme based funds. We considered regular and growth options only. One should always make investment decisions based on their risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and twitter handle.
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Business Standard
28-05-2025
- Business
- Business Standard
Fall in ITC shares drag Nifty FMCG index 2%; Nestle, Emami down 2% each
Nifty FMCG Index in focus: The Nifty FMCG index, a stock market index that tracks the performance of the Indian Fast-Moving Consumer Goods (FMCG) sector, came under pressure on Wednesday, May 28, 2025, slipping as much as 1.56 per cent to hit an intraday low of 55,663.40 levels. Leading the decline in the FMCG pack around 3:00 PM were shares of ITC, Nestle, Emami, and Tata Consumer, which fell between 1.1 per cent and 2.5 per cent. Other notable laggards included United Spirits (down 0.78 per cent), Hindustan Unilever (down 0.63 per cent), Varun Beverages (down 0.25 per cent), Britannia (down 0.16 per cent), and Godrej Consumer (down 0.12 per cent). However, not all stocks in the index were in the red. Gainers included Dabur (up 0.08 per cent), Patanjali Foods (up 0.16 per cent), Marico (up 0.50 per cent), Radico Khaitan (up 0.51 per cent), Colgate-Palmolive (up 1.17 per cent), and United Breweries (up 1.36 per cent). ITC slides on block deal In a filing to the London Stock Exchange (LSE) on Wednesday, the maker of Dunhill and Lucky Strike cigarettes said it had completed the sale of 313 million ordinary shares in ITC through an accelerated bookbuild process targeting institutional investors. The transaction, representing 2.5 per cent of ITC's equity, generated net proceeds of ₹12,900 crore. Following the sale, BAT's stake in ITC is expected to decrease to approximately 22.9 per cent. A day earlier, BAT had announced plans to divest part of its holding, stating it would remain a significant shareholder with a 23.1 per cent stake. At 2:44 PM, the FMCG index remained near its day's low, trading 1.31 per cent lower at 55,804.10. In contrast, the benchmark Nifty50 was down just 0.17 per cent, hovering at 24,784.50 level.
Time of India
27-05-2025
- Business
- Time of India
Nestlé India's outgoing CEO Narayanan weathered the Maggi storm; Tiwary must tackle slowing growth
Nestlé India's outgoing CEO Narayanan weathered the Maggi storm; Tiwary must tackle slowing growth Manish Tiwary (left) will be the MD of Nestle India on 1st of August 2025, Suresh Narayanan (right) current Chairman and MD of Nestle India; Collage by Mohommad Arshad Synopsis Come June 23, Nestlé India will be moved out of the Sensex 30 to Sensex Next 30. The company has remained flat for the last one year. It has even underperformed the Nifty FMCG Index in the past 5 years. The shift captures the woes faced by the company and the sector. An overall revival seems like a long-term story. PRAVIN PALANDE By VARSHA SANTOSH 8 Mins Read, May 28, 2025, 04:55 AM IST SHARE THIS NEWS Close Font Size Abc Small Small Abc Normal Normal Abc Large Close When the world's biggest food and beverages maker brings in a new chief executive to its Indian operations, some challenges come along. Nestlé, which successfully battled the Maggi image problem with Suresh Narayanan a decade ago, is now bringing in Manish Tiwary and he not only needs to fix the multi-year growth slowdown, but also convince index managers that the makers of KitKat chocolates deserve to be a part of the elite index. Nestlé India
