3 FMCG shares that gained up to 49% in FY20, even as investors lose Rs 38 lakh crore in BSE stocks

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March 31, 2020 4:28 PM

Nestle India stock withstood the recent giant fall in the broader markets but still offers an attractive price level to outperform the market in the next one year.

Sensex, NiftyDue to the fall investors lost a whopping Rs 38 lakh crore worth of wealth during this financial year

Financial year 2019-20 witnessed extreme volatility in stocks owing to a host of domestic and global factors that guided the share market’s movement. During this period, headline indices gained impressively to touch record highs before plummeting to their three-year low levels. S&P BSE Sensex zoomed to all-time high of 42,273 in FY 20 from 39,000 at the end of previous fiscal; while Nifty 50 soared from 11,624 to 12,430.50 points. As of March 31, 2020 closing, Sensex ended at 29,468 while NSE’s Nifty settled at 8,597 points.

Due to the fall investors lost a whopping Rs 38 lakh crore worth of wealth during this financial year. At the start of the financial year 2019-20, market capitalisation of BSE listed firms stood at Rs 151 lakh crore, while on March 31, 2020 it slipped to Rs 113 lakh crore. S&P BSE Sensex delivered a negative return of 24 per cent while Nifty 50 fell 26 per cent during this period. However, there are few stocks which have outperformed the headline indices.

Hindustan Unilever Ltd (HUL): This FMCG major gained around 34 per cent since April 1, 2019, even as Sensex and Nifty plunged to hit three-year low levels. HUL share price rose from Rs 1,690 to Rs 2,298.15. “The coming quarters will witness lower volumes in many segments but with the opportunity to add more products/ regions and use its reach to penetrate the products pan India will ensure quick bounce back as the economy recovers,” Ravi Singh, VP-Head of Research, Karvy Stock Broking said.

Nestle India Ltd: Nestle India share has delivered a return of 49 per cent since April 1 of last year. Nestle India share price was at Rs 10,915 on April 1, 2019, while it settled at 16,289. “The company has a cash balance to the tune of Rs 2,300 crore. The company’s business could affect the least as the primary product line is of the essential food sector. The stock withstood the recent giant fall in the broader markets but still offers an attractive price level to outperform the market in the next one year,” Singh added.

Dabur India Ltd: Dabur India outperformed the equity benchmarks by delivering a return of over 4 per cent even as Sensex and Nifty were in tight grip of bears. Dabur India shares ended at Rs 447.35 apiece on BSE in Tuesday’s trade.

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