Most FMCG firms were hit by de-stocking by channel partners ahead of the implementation of the Goods and Services Tax (GST) in July this year due to uncertainties of transition to the new system.
Shares of FMCG major Godrej Consumer Products Ltd (GCPL) today fell by 2 percent after the company reported 8.70 percent decline in consolidated net profit for the quarter to June.
Net sales during the period under review were up 3.42 per cent at Rs 2,266.69 crore as against Rs 2,191.64 crore of the corresponding quarter of the previous fiscal, the company said in a BSE filing.
Investors should use every bounce to make short position with keeping stop loss placed at 9,580. However, if Nifty closes above 9,630 then we may see Nifty to continue its overall trend which is on the higher side.
The GST will be positive for Colgate and Dabur and will have neutral to negative for cigarette manufacturers
Religare Securities recommends Jubilant FoodWorks, Power Grid Corp and Godrej Consumer Products
Prakash Gaba of prakashgaba.com feels that Nifty has support at 9050 and resistance at 9119-9218 while Bank Nifty has support at 21000 and resistance at 21500.
In the past, the group's FMCG firm Godrej Consumer Products Ltd (GCPL) has acquired many companies and brands mainly in South East Asia, Latin America and Africa.
CNBC-TV18's Farah Bookwala reports that upheavals in regions across the globe that account for a large portion of FMCG revenues could hurt fourth-quarter performance.
GCPL chairman Adi Godrej, in an interview, on CNBC-TV18, expects the acquisition of Soft & Gentleto be accretive in the first year and is optimistic that the UK business will continue to outperform the market.
In an interview to CNBC-TV18, A. Mahendran, MD, Godrej Consumer Products Ltd explained what will be the advantages to Godrej consumers and such soap makers due to export tax cut on palm oil by Malaysia. Although he believes that it won't be much of an impact for this quarter.
Attracted by good financial performance and valuations, foreign investors increased their exposure to large fast-moving consumer goods companies such as ITC and Britannia in the three months to March this year.