Accumulate ITC, HUL, Dabur, Titan, Tata Global: Emkay

Emkay Global Financial Services' report on FMCG sector

"A one-time star, the FMCG sector, has lost significant grounds in the last few months. The sector, as a whole, has been contending with ebbing consumer confidence. The volume growth has come off for all companies, indicating a definite demand slowdown. But then having looked at the current prices, we strongly believe that it is a favourable time to start accumulating the stocks on any declines from here on." "Analyzing the price movement in the current quarter, the CNX FMCG index has clearly under-performed all major sectors. Over the benchmark Nifty, the under-performance is close to around 11 percent. The sectors that have largely contributed to the up-move in Nifty are Banks, Auto and Metals. Now, the bigger question is whether this under-performance would sustain any longer. Our answer is an emphatic 'NO'. Any decline of 2-3 percent in the stocks should be used as an opportunity to accumulate long positions. We also expect an out-performance of 12-14 percent over Nifty in the next few months. We suggest to accumulate ITC, Hindustan Unilever, Dabur India, Titan Industries and Tata Global Beverage," says Emkay Global Financial Services research. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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