HUL, Nestle, Asian Paints, Britannia and Pidilite will hit all-time highs in the next two months, said Abneesh Roy, Executive Director-Institutional Equities at Edelweiss Securities. Emami is best placed in the midcap FMCG names, he added.

“In the next two quarters, a lot of stocks like Hindustan Unilever, Nestle, Asian Paints, Pidilite, Britannia, will hit an all-time high. There is a good case study available, Tata Consumer and Marico, both companies have seen good margin improvement in spite of the current headwinds seen in Q1 and the last financial year,” Roy told CNBC-TV18.

“In the second half, if the current scenario continues, because of rupee depreciation, crude oil extremely volatile - are caveats, but for the second half 5-6 percent upgrade is possible and for FY24, with rural volume growth reviving plus full year benefit of the raw materials, I do expect further 5-7 percent upgrade for FY24, if the current scenario continues,” he said.

Also Read: Marico shares slump 2% after FMCG firm said Indians purchased lesser Saffola oil

Talking about ITC, Roy said, “We have ITC as 30 percent weightage in our model portfolio. So, I do expect the stock to do well from hereon also. If you see the first half, a lot of the businesses have a very favourably comparable, especially agriculture, cigarette, hotel business will see excellent growth even in FMCG, stationary, which is a high margin business for them, saw very tough times in the last two years. So yes, I do expect ITC stock also to do well. Of course on February 1, the next event, we need to watch out, but we recently upgraded the target price of ITC to around Rs 340-345. So we expect ITC to continue to do well in the next two quarters.”

Also, watch the accompanying video of CNBC-TV18’s Mangalam Maloo to get a handle on the Q1 expectations from the FMCG sector in the earnings special - Quarter Se Quarter Tak (QSQT).

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First Published:Jul 14, 2022 5:28 PM IST