Easing Of Crude, Palm Oil Prices Augurs Wells For FMCG, Paint Companies: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.We have analysed price movements of key commodities in Q4 FY23 so far and identified companies from our coverage universe that could benefit or be impaired by such price movements.The crude oil price has been easing for the last three quarters after being on the boil since the start of the Russia-Ukraine conflict. It is at the lowest level since the beginning of CY22, declining the most in March 2023 (down 31.5% YoY). However, it historically remains at elevated levels. The crude oil price is currently hovering at $72-75/barrel of oil, down 45% from its all-time high of $134/bbl.Palm oil is a key raw material for soap companies and, to some extent, food players. Both Malaysian palm oil and Palm Fatty Acid Distillate remained flat QoQ after a sharp correction recently from all-time high levels (down 49% and 61% respectively). The Malaysian palm oil price has inched up 5.9% month-on-month in March 2023 to myr4,083/million tonne, while the PFAD price has remained flat month-on-month at $707/million tonne. With the sharp correction in few key commodities such as crude oil and palm oil, we expect companies to pass on the benefits to consumers; some of them have already started to do so..Click on the attachment to read the full report:.Indian Agriculture Sector — Unseasonal Weather Disturbance Cause Havoc In Few Districts: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Easing Of Crude, Palm Oil Prices Augurs Wells For FMCG, Paint Companies: Motilal Oswal

The downward momentum in crude and crude derivatives and palm oil prices augurs well for Pidilite, GCPL, HUL and paint companies.

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