Preeyam Tolia, Equity Research Analyst at Axis Securities, expects gradual rural demand recovery and only in the second half of FY25. Likes Nestle, Jyothy Labs, Varun Beverages. FMCG companies focus on distribution, market expansion, and new products. Margins of paint sector under pressure. Positive outlook for Nestle, Jyothy Labs, Varun Beverages despite raw material inflation.
It is worth noting here that HUL’s September quarter revenue and net profit before exceptional items benefitted to some extent by a one-off credit from favourable resolution of past indirect tax litigation.
The company said that its domestic volumes grew in ‘low single digit’ as rural demand recovery remained subdued due to rising food prices and scanty rains.