FMCG stocks underperformed benchmark index in last one year

by IANS |



New Delhi, Feb 21 (IANS) Corporate commentary in the quarter gone by lacked any concrete evidence of pickup in rural demand which reflected in the underperformance of the FMCG sector in every time frame in last one year, JM Financial Institutional Securities said in a report.


Risk-on sentiments are still prevalent in 2024, as is evident from the small and mid caps outperformance over Nifty in last one month. However, we continue to believe that 2024 would be the year of large caps over SMID, as asset allocators would prioritise valuation comfort. On a sectoral level, most notable outperformance came from utilities (13.5%), energy (13.4%) and pharma (10.2%) while FMCG underperformed the benchmark in every time frame (1W/M/Y) in last one year, the report said.


66% of the companies in JMFL coverage universe have either met or beaten expectations in Q3 FY24. Revenue growth of 5.7% YoY in companies under coverage (exc. BFSI) missed estimates by 2.3%. EBITDA margin of 17.5% exceeded expectations of 16.7%, but has tapered sequentially (18.7% in Q2FY24). Margins exceeded expectations in sectors like ports, metals, oil & gas and utilities while chemicals and media missed expectations, the report said.


Emerging market equities gained 4.7% in last one month, while Nifty (2.9%) underperformed the EM and DM basket by a wide margin. Entire commodity basket reverted with a gain of 3.2%, while crude prices were up 5.1%.



Latest News
After 10-yr stint in BJP, Haryana's Jat leader Birender Singh rejoins Congress Tue, Apr 09, 2024, 02:50 PM
PM Modi to address first public rally for LS polls in MP's Maoist-hit Balaghat Tue, Apr 09, 2024, 12:52 PM
Why India is seeing a rising trend of diseases Tue, Apr 09, 2024, 12:40 PM
IPL 2024: 'Chennai Super Kings should be called Chepauk Super Kings', says Aakash Chopra Tue, Apr 09, 2024, 12:37 PM
Real Madrid request UEFA permission to play Manchester City under a closed roof: Report Tue, Apr 09, 2024, 12:36 PM
IPL 2024: Jonny Bairstow ready to put best foot forward' vs former side SRH Tue, Apr 09, 2024, 12:36 PM
Two killed in road accident in J&K's Udhampur Tue, Apr 09, 2024, 12:33 PM
MVA cracks seat-share formula, Uddhav Thackeray grabs maximum Tue, Apr 09, 2024, 12:31 PM
Toronto, other Canadian cities go dark as millions watch total solar eclipse Tue, Apr 09, 2024, 12:28 PM
MSCI India index rebalancing could see inclusion of 18 stocks with inflow of $2.7 bn Tue, Apr 09, 2024, 12:18 PM
South Korean Prez vows to be among top 3 nations in AI technology Tue, Apr 09, 2024, 12:10 PM
Mobile messenger KakaoTalk's users fall below 45 million for 1st time: Report Tue, Apr 09, 2024, 12:09 PM
X employees facing arrest in Brazil: Elon Musk Tue, Apr 09, 2024, 12:06 PM
Sectors like capital goods, auto lead Sensex to new high Tue, Apr 09, 2024, 12:04 PM
Egypt, Jordan, France urge immediate ceasefire in Gaza Tue, Apr 09, 2024, 12:03 PM