FMCG stocks stumble on subdued Q3 updates
The Nifty FMCG index closed 1.7% lower today. This was after the leading FMCG makers are expecting a low to mid-single digit growth in Q3 sales. Key players in the sector like Dabur (-2.8%), Marico (-3.9%), and Godrej Consumer (-3.6%), noted a decline in consumer demand specifically in rural markets, while urban markets remained resilient in the third quarter. It's noteworthy that nearly 35% to 38% of FMCG sales in the country are attributed to rural India.
ACC acquires additional stake in ACCPL
ACC Limited, a subsidiary of Adani-owned Ambuja Cement, acquired the remaining 55% stake in Asian Concretes and Cements Private Ltd (ACCPL) for ₹425.96 crore on Monday. With this acquisition, ACC’s cement production capacity rose to 38.55 MTPA and elevated Adani Group's total cement capacity to 77.40 MTPA. Meanwhile, the shares of ACC Ltd closed 0.7% lower today.
DLF gains on record sales of luxury residences
Shares of the real estate developer closed 0.9% higher. This was after the company reported a pre-launch sales of ₹7,200 crore and sold more than 1,000 luxury residences of its latest project in Gurugram. The company said it met its FY24 booking guidance after selling its most recent project.
Godrej Industries hit 52-week high
Shares of the Godrej Industries closed 5.2% higher after hitting a 52-week high today. This came after the company’s chemical division announced that it has signed an Memorandum of Understanding (MoU) with the Government of Gujarat, to invest ₹600 crore in Valia over the next four years and potentially creating around 250 job opportunities.
Sula Vineyards surges for second straight day
Shares of Sula Vineyards closed at a record high, locked in a 20% circuit today. The Maharashtra government's decision to extend wine subsidies for five more years is expected to boost Sula's production. With over 50% market share, Sula is a leader in domestic wine and wine tourism. Experts predict a 15% CAGR in wine consumption over the next decade, positioning Sula to become a market leader amid rising incomes and a growing middle class.
IPO Corner
The IPO of Jyoti CNC Automation, a leading manufacturer and supplier of CNC machines will open for subscription between 9 and 11 January. The price band for the public issue is ₹315-331 per share. The company plans to raise ₹1,000 crore through this IPO.
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