Ad spends to remain high for Indian consumer cos, Anand Rathi says

Emami

27/02/2024 10:09

** Advertising and promotional (A&SP) spends for Indian
fast-moving consumer goods (FMCG) makers to stay high with
modest growth rates, brokerage Anand Rathi says
    ** A&SP spends rose 24% for eight FMCG cos in Q3 on heated
up competition, festivals and the World Cup - note
    ** Expects ~9% rev growth in FY25 for paints, 17% for
alcoholic beverages
    ** Prefers Hindustan Unilever (HUL)  HLL.NS , Godrej
Consumer Products  GOCP.NS  among large-caps, Zydus Wellness
 ZYDS.NS  and Emami  EMAM.NS  among mid-caps, United Breweries
 UBBW.NS  in consumer discretionary 
    ** Rates all preferred picks "buy"
    ** Says favourable input price trend likely to continue for
FMCG and paint cos, expect modest margin gains ahead 
    ** Earlier in Feb, NielsenIQ data showed slowing growth of
Indian consumer goods sector 
    ** GOCP up 1.2%, ZYDS, HLL, EMAM largely flat while UBBW
down 1% 

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))