Safest FMCG Bets Before Q2 Results: Goldman Sachs Picks Marico, Tata Consumer
Marico is in focus in a quarterly results development.
· NDTV Profit
Weak monsoon, costlier inputs and a high base from last year’s GST cuts worry investors, but Goldman Sachs says Marico and Tata Consumer face the lowest risk of an earnings…
The analysis
Against that, the stock is +0.2% on the day at ₹784.70, and has returned -7.0% over three months. It sits 11% below its 52-week high. The fmcg sector has moved -2.9% over the same period, so Marico is running 4.1 points behind its peers.
This is a Monsoon / rural demand event. Rural demand is a large share of staples and two-wheeler volumes, and it tracks the monsoon and support prices with a lag of a quarter or two. On the day the stock is +0.2%, so the price barely moved, which suggests this was expected or is seen as immaterial.
For Marico, the question is how much of this is already reflected in the price and how much re-rates the fmcg peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
- Tax changes flow through to post-tax earnings and can shift the relative appeal of entire asset classes.
- With GST Council involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The company directly in focus is MARICO.
- Sector exposure: FMCG, Consumer & Retail, Consumer Durables.
In this story
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