Fast Moving Consumer Goods are common products for day to day life. They are quickly sold and relatively low cost products. FMCG or CPG (consumer packaged goods) companies can be divided in to two – Personal Care and Food Processing Companies. Here we are analyzing June 2019 quater results and last 1 month and 1 year performance of these companies in Indian stock markets – NSE and BSE.
Personal Care Companies
In the personal care area Hindustan Uniliver leads the pack with a market cap of 4 lakh crore rupees.
HINDUNILVR reported 14% gain in profit after tax in June 2019 quarter and gained 7% in last one month and 3% in last 1 year.
Dabur is the second most valued firm in this section with a market cap of 76k crore. Dabur reported 11% standalone gain and 10% consolidated gain in PAT and the stock gained 5% in last one month and -8% in last 1 year period.
Godrej Consumer Products or GODREJCP in the third position with 64k crore market cap and Marico in the fourth position with 51k crore. Godrej reported 8% gain pat while Marico reported impressive 17% standalone gain and 21% consolidated gain in June 2019 quarter. Godrejcp tanked 37% in last 52 weeks while marico managed to gain 5% in last 1 year in a weak market.
Procter & Gamble Hygiene & Health Care (PGHH), Colgate-Palmolive (COLPAL), Gillette, Godrej Industries and Emami are the other players in section with more than 10k market cap. PGHH and Gillette reported more than 30% yoy pat numbers and managed to keep 2% and 8% yearly gains when most other midcaps and smallcaps shares tanked between 30 to 60%. Even though Colgate reported 10% decrease in pat it gained 6% in last one month and 8% in last 52 weeks.
In June 2019 quarter Emami reported better than expected results with 104% yoy standalone pat and 47% yoy consolidated pat but that failed to lift the stock.
Zydus Wellness (ZYDUSWELL) is a midcap FMCG personal care company which reported impressive June quarter results and market responded very positively. Zydus Wellness reported 333% sales gain and 205% pat gain (consolidated yoy) and that reflected in the stock too with 21% gain in last one month.
Other players in this section are Jyothy Laboratories (Jyothilab), Kaya Limited and JHS Svendgaard Laboratories. Jyothilab reported more than 10% standalone and consolidated results but that failed to lift the stock which tanked 33%. Both Kaya and Jhs reported negative yoy pat and tanked more than 50% in last one year time frame like most mid and smallcap stocks.
Overall in June 2019 quarter most largecap and midcap stocks in the Indian personal care industry reported 10%+ yoy PAT which is not bad compared to other industries and overall sluggish economic situation in India.