FMCG Stocks Tumble Amid Weak Demand

Shares of Godrej Consumer Products and other major FMCG companies fell sharply as weak demand conditions persisted. Godrej reported challenges in the Home Insecticides segment due to weather impacts and inflationary pressures. Despite these, it maintained a 7% average organic volume growth over six quarters.

Shares of Godrej Consumer Products took a significant hit on Monday, plummeting 9% after the company released a discouraging mid-quarter business update pointing to persistent demand challenges.

The company's stock fell 8.72% to close at Rs 1,127.90 on the BSE. This decline didn't leave other FMCG stocks unscathed; Tata Consumer saw a 4.18% drop, Marico fell by 4.07%, and Hindustan Unilever slipped 3.37% on the exchange. Colgate-Palmolive and Britannia Industries also recorded declines of 2.76% and 1.63%, respectively.

The BSE FMCG Index slumped by 408.75 points, marking a 1.93% fall. Godrej Consumer, in its update, noted subdued demand in India's market over recent months, citing unsupportive weather conditions and inflationary strains as additional pressures on its Home Insecticides segment, which has hindered category growth this quarter.

(With inputs from agencies.)