FMCG, Retail Q3 Results Preview - Demand Slowdown Will Weigh On Topline: Axis Securities

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. .Axis Securities Report.FMCG -Volume growth for most of the staple companies (excluding ITC Ltd.) under our coverage will be in the low to mid-single digits as early stocking ahead of the festive season led to limited stocking by the retailers in the first half of the quarter, while revenue growth will primarily be price-led (price hikes undertaken to offset the impact of high inflation in the past). Rural demand growth which was hampered in the last several quarters witnessed some revival towards the end of the quarter. However, the sustenance of rural growth will define future growth momentum. .Paints- After a strong run-up in the last several quarters, paints company are likely to report a sharp fall in revenue as a combination of factors –Subdued demand environment on account of high inflation,limited opportunity for further market share gains, anddecline in pent-up demand..Retail-We expect the topline of most of the retail companies to report strong doubledigit growth in Q3 FY23, led by festive demand, store expansion, increase mobility, and social gatherings. Having said that retailers that have a presence in metros/ tier-I towns are likely to fair well vis-a-vis retailers in tier-II/III towns as these towns continue to remain under pressure due to high inflation..Click on the attachment to read the full report:.FMCG Q3 Results Preview - Slow Pace Of Earnings Recovery In Staples: Motilal Oswal.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.

FMCG, Retail Q3 Results Preview - Demand Slowdown Will Weigh On Topline: Axis Securities

Signs of revival in rural, softening of raw material prices will be the key triggers for the revival of entire consumer sector.

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