The volume was affected in the third quarter, led by the price increase by firms to combat inflation pressure. The operating margin for large consumer goods companies shrunk, as the rural demand was an offset from weak urban sales.
Emkay Global Financial Services analysts said in a note that the one-year forward valuation of the sector is a firm for a historic 10-year mean, but it is at 11% discount for five years.
It would be important for evaluation to arrest the arrest of earnings, MK said that while maintaining ‘low weight’ stance. Companies need to increase execution and thus combat demand and double stress of inflation.
Heavyweight ITC Limited has lost about Rs 1.03 lakh crore in the market cap so far in 2025, while alcohol names Varun Beverages Limited and United Spirits Limited fall to Rs 61,400 crore and Rs 23,500 crore respectively.
Tata Consumer Limited and Nestle India Limited held the highest rally this year, while eight out of 15 shares since September summit did business under the so -called ‘recession’ area.
(Tagstotranslate) FMCG (T) Nifty 50 (T) Tax Cut
