Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

FMCG stocks in the limelight
Thu, 21 Oct 01:30 pm

Indian indices continued their upward journey on the back of buying interest in heavyweights during the previous two hours of trade. Stocks from FMCG and oil & gas spaces are seeing the maximum buying interest while those from the IT and auto sectors are seeing the minimum.

The BSE-Sensex is trading up by around 300 points while NSE-Nifty is trading 90 points above the dotted line. BSE-Midcap is up by 1.1% while BSE-Smallcap index is 1% above yesterday’s closing. The rupee is trading at 44.37 to the US dollar.

FMCG stocks are trading firm led by HUL and Dabur. Pidilite announced its 2QFY11 results yesterday. The company’s standalone net sales grew by 15% YoY. This came on the back of robust performance by its consumer & bazaar products and industrial products segments. While the former grew by 16% YoY, the latter recorded a growth of 19% YoY during the quarter. Operating margins dipped by 3.4% to stand at 21.1% during the quarter. This was a result of increase in raw material costs and higher other expenditure (both as percentage of sales). However, fall in staff costs (as percentage of sales) provided some support to the operating margins. Pidilite’s net profit fell by 3.4%. This was a result of lower operating income as well as higher effective tax rates.

Auto stocks are currently trading firm led by TVS Motor, Maruti Suzuki and Tata Motors. During the month of September 2010, M&M reported domestic scooter sales volumes of 16,569 units, which was higher by 451% YoY. For the year till date, the company has sold about 70,800 scooters. On excluding the domestic sales volumes of the month of September, the average sales per month stand at a little over 10,800 units. As such, the sales in the month of September remain quite strong. During the month, M&M’s domestic market share in the scooter segment stood at about 10%. During the year till date, the company’s market share in this segment stood at over 7%.

It must be noted that the scooter segment forms nearly 17% of the total domestic two-wheeler industry. Considering that the demand for two-wheelers is much higher than the supply at present, most of the players have long waiting periods on their products. It is quite possible that M&M would have been able to capitalise on the same, and therefore this could have been a reason for the volumes to shoot up.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "FMCG stocks in the limelight". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.