FMCG stocks in focus: HUL, Britannia, Nestle India hit new highs

Shares of fast moving consumer goods (FMCG) companies such as Hindustan Unilever (HUL), Britannia Industries, Nestle India and Jubilant FoodWorks have hit their respective new highs on the BSE on expectation of good profit growth.
Thus far in the month of April, all these four stocks have outperformed the market by gaining in the range of 8% to 9% on the BSE. On comparison, the S&P BSE Sensex and S&P BSE FMCG index were up 4% and 5%, respectively.

Analysts at Edelweiss Securities expect consumer goods companies to see revival on both fronts, on volume growth and margin expansion from here on. With few state elections, expected populist budget, rural consumption should benefit. This coupled with improving macros and hopefully a good monsoon should also augur well for the sector.

Jubilant FoodWorks, the largest gainer among the pace, hit a new high of Rs 2,539, up 9% thus far in current month. The stock rallied 44% so far in the calendar year 2018, against 0.96% rise in the benchmark index.