Consumer-facing stocks plunge
Another top loser in the fast moving consumer goods (FMCG) space was Marico, which fell 4.56 per cent.
Mumbai: Consumer-focused stocks fell sharply on Monday on perceptions of a demand slowdown in the economy, after market leader Hindustan Unilever (HUL) last week reported a moderation in the fourth quarter performance.
Another top loser in the fast moving consumer goods (FMCG) space was Marico, which fell 4.56 per cent.
HUL fell to a low of Rs 1,657 on the BSE in intra-day trade and finally closed at Rs 1,672.35, down 1.21 per cent, as select brokerages revised downward their short-term targets for the stock.
Last Friday HUL had reported fourth quarter profit after tax of Rs 1,538 crore and revenue of Rs 9,945 crore, which were far below analyst’s estimates.
Other consumer focused stocks that fell on Monday included Bata India (-4.72 per cent), IFB Industries (-5.70 per cent), Titan (-5.57 per cent), Motherson Sumi (-5.48 per cent), BPL (-7.59 per cent), VIP Industries (-1.87 per cent) and Whirpool (-1.69 per cent).
The BSE Consumer Discretionary Index fell 1.33 per cent while the BSE FMCG Index fell 0.23 per cent.
A Motilal Oswal Financial Services analyst, however, said HUL continues to outperform in a slowing demand environment.
“While sector commentary is weak for the first quarter of FY20 as well, four key trends which can drive an elevated earnings growth trajectory for HUL compared to the past remain relevant– rapidly improving adaptability to market requirements, recognition and strong execution on Naturals, a continuous strong trend toward premiumisation and extensive plans to employ technology, creating further entry barriers,” the analyst said.
Marico net zooms 2-fold
FMCG firm Marico on Monday posted over two-fold rise in its consolidated net profit at Rs 405 crore for the fourth quarter of 2018-19, aided by one-time write-back of tax provisions amounting to Rs 188 crore. The company had reported a net profit of Rs 183 crore in the year-ago quarter.
Revenue from operations rose to Rs 1,609 crore for the March quarter from Rs 1,503 crore a year ago, Marico said in a regulatory filing.
For the full year, 2018-19, the company posted a net profit of Rs 1,135 crore, up 37.24 per cent from Rs 827 crore in 2017-18. Revenue from operations during the last fiscal rose to Rs 7,334 crore from Rs 6,333 crore in 2017-18.
The firm said the capital expenditure in current fiscal is likely to be around Rs 125–150 crore.