{"id":12707,"date":"2022-11-24T11:27:44","date_gmt":"2022-11-24T05:57:44","guid":{"rendered":"https:\/\/univest.in\/blogs\/?p=12707"},"modified":"2022-11-24T11:27:44","modified_gmt":"2022-11-24T05:57:44","slug":"price-hikes-lead-growth-for-fmcg-in-q2fy23-weak-rural-demand-a-red-flag","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/price-hikes-lead-growth-for-fmcg-in-q2fy23-weak-rural-demand-a-red-flag\/","title":{"rendered":"Price hikes lead growth for FMCG in Q2FY23, weak rural demand a red flag"},"content":{"rendered":"

FMCG sector with well-established names such as HUL, ITC, Dabur, and Varun Beverages are all key players in this sector. While these brands are popular among consumers they are also on the radar of investors as well. The investment rationale is that these are mostly daily consumption goods whose demand will be either consistently rising.<\/p>\n

While NIFTY this year has seen severe volatility and is currently trading at 18,000 levels, NIFTY FMCG Index has seen a breakout in July i.e., at the beginning of Q2FY23 and that too after a huge consolidation. Further, this break-out drove this index to a sharp upward movement as seen in the chart below, indicating a rally also experienced by several FMCG stocks due to their strong performance in Q2FY23.<\/p>\n

\"FMCG<\/p>\n

While many investors believe Q2FY23 has been robust for FMCG players, the main reason behind this was the price hikes taken by the FMCG players to pass on the burden of inflation in raw material prices. This enabled FMCG players to boost their sales in Q2, which also affected their share prices positively. The graph below shows the YTD and Q2FY23 share returns delivered by a few well known FMCG players.<\/p>\n

Varun Beverages has been the leader with respect to investor gains delivered compared to any other FMCG stock in consideration. Whereas Marico and Dabur appeared to be laggards as they not only saw the lowest share price increase in Q2FY23 but also went on to deliver negative YTD returns.<\/p>\n

\"FMCG<\/p>\n

Therefore, it becomes important to conduct a comparative analysis of the Q2FY23 performance of select FMCG stocks from different segments to understand which ones carry the potential for maximum future returns. So, let\u2019s now look and compare the Q2FY23 performance of a few major stocks like HUL, ITC, Dabur, Marico, and Varun Beverages.<\/p>\n

You may also like:\u00a0<\/em>Mutual Fund Buys in October 2022<\/span><\/a><\/p>\n

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