Mumbai: Consumer-focused stocks fell sharply on Monday on perceptions of a demand slowdown in the economy, after market leader Hindustan Unilever (HUL) last week reported a moderation in the fourth quarter performance.
Another top loser in the fast moving consumer goods (FMCG) space was Marico, which fell 4.56 per cent.
HUL fell to a low of Rs 1,657 on the BSE in intra-day trade and finally closed at Rs 1,672.35, down 1.21 per cent, as select brokerages revised downward their short-term targets for the stock.
Last Friday HUL had reported fourth quarter profit after tax of Rs 1,538 crore and revenue of Rs 9,945 crore, which were far below analyst’s estimates.
Other consumer focused stocks that fell on Monday included Bata India (-4.72 per cent), IFB Industries (-5.70 per cent), Titan (-5.57 per cent), Motherson Sumi (-5.48 per cent), BPL (-7.59 per cent), VIP Industries (-1.87 per cent) and Whirpool (-1.69 per cent).
The BSE Consumer Discretionary Index fell 1.33 per cent while the BSE FMCG Index fell 0.23 per cent.
A Motilal Oswal Financial Services analyst, however, said HUL continues to outperform in a slowing demand environment.
“While sector commentary is weak for the first quarter of FY20 as well, four key trends which can drive an elevated earnings growth trajectory for HUL compared to the past remain relevant– rapidly improving adaptability to market requirements, recognition and strong execution on Naturals, a continuous strong trend toward premiumisation and extensive plans to employ technology, creating further entry barriers,” the analyst said.
