Sales rise, lower input costs to drive Indian FMCG growth - Analysts

Emami

22/03/2023 07:56

** Rising sales in large companies, expansion of
distribution for smaller firms and slide in input costs to aid
consumer staples and discretionary firms in India, say analysts
    ** ICICI Securities believe Nestle India  NEST.NS ,
Britannia Industries  BRIT.NS  are likely to witness
industry-leading sales driven growth due to aggressive expansion
plans
    ** Distribution-driven growth opportunity in Emami
 EMAM.NS , Jyothy Labs  JYOI.NS  and Mrs. Bectors Food
Specialities  MRSB.NS  too - ICICI
    ** ICICI Securities picks Hindustan Unilever  HLL.NS , NEST,
ITC  ITC.NS  and JYOI as its top picks in consumer staples
    ** Raw material headwinds for consumer staples firms are now
ebbing with decline in costs of key inputs like vegetable oil
and crude oil, according to Jefferies
    ** Adds wheat and milk are the only major exceptions which
have inched higher, with wheat prices jumping more than 30% in
the last 18 months    
    ** Jefferies picks HLL, BRIT, Godrej Consumer Products
 GOCP.NS , Varun Beverages  VARB.NS  as its top picks
    ** Nifty FMCG Index  .NIFTYFMCG  up 1.68% YTD, as of last
close vs 17.54% rise in 2022
    
    

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))