4 hrs ago
BNP Paribas Sets FMCG, Quick-Commerce Targets With Upside
BNP Paribas is a brokerage that studies companies and estimates what their shares could be worth.
It gave new target prices for several consumer companies and quick-commerce businesses.
It set Swiggy’s target at Rs 390 and Eternal’s at Rs 380.
The brokerage said some quick-commerce companies are reducing discounts, but Amazon Now is still offering aggressive deals.
Customers are also facing higher free-delivery thresholds and are being encouraged to join loyalty programmes.
Companies that sell everyday goods such as soap, shampoo and toothpaste have raised some prices.
Their costs are rising because agricultural commodities and crude-linked materials have become more expensive.
BNP Paribas expects sales to grow in 2QFY27, but it expects profit margins to remain under pressure.
It said companies may need more price increases or smaller product sizes to manage costs.
BNP Paribas set Swiggy’s target at Rs 390 and Eternal’s at Rs 380.
The brokerage said Flipkart Minutes has reduced discounting, while Amazon Now remains aggressive.
Free-delivery thresholds have risen, and spending is shifting toward loyalty programmes such as Zepto Club.
BNP Paribas expects FMCG sales growth in 2QFY27 but continued margin pressure from higher input costs.
Targets include Rs 380 for ITC, Rs 530 for Dabur India, Rs 2,450 for Hindustan Unilever and Rs 965 for Marico.
- Who
- BNP Paribas, along with the consumer companies and quick-commerce platforms discussed in its report.
- What
- The brokerage issued share-price targets and assessed discounting, consumer prices, sales growth and margin pressure.
- Where
- The companies and platforms discussed operate in the Indian consumer and quick-commerce markets.
- When
- The assessment refers to price changes over the last six months and sales expectations for 2QFY27; no publication date is provided.
- Why
- BNP Paribas cited broader raw-material cost pressure, including higher agricultural commodity and crude-linked costs, as a reason for expected price hikes and margin pressure.
Key facts
- Swiggy target
- Rs 390
- Eternal target
- Rs 380
- ITC target
- Rs 380, indicating 41% upside
- Dabur India target
- Rs 530, indicating 33-37% upside
- Britannia Industries target
- Rs 6,580, indicating 33-37% upside
- Other targets
- Emami Rs 480; Godrej Consumer Rs 1,000; Hindustan Unilever Rs 2,450; Marico Rs 965; Nestle India Rs 1,560
- Observed price hikes
- 4-14% across soaps, shampoo and toothpaste stock-keeping units over the last six months
Quotes
BNP Paribas
Foreign brokerage providing consumer-sector analysis and stock targets
“At the same time, FMCG input cost pressure has broadened with the spike in agri commodities and a resurgence in crude-linked RM costs. Companies have responded with price hikes / shrinkflation, and more may follow. FMCG seems well poised for sales growth in 2QFY27, but margin pressure is set to continue.”
businesstoday.in
“With RM pressure getting more broad-based, more price hikes will likely be needed in the coming months.”
businesstoday.in
Sources
Related news
Rising Sugar, Crude Oil and Copra Reshape Consumer Company Margins
ITC Shares Recover as Tax Concerns Clash With Mixed Targets
Equirus Rates 13 Consumer Stocks Long Amid Rising Commodity Costs
HUL Bets on Premium Products as FMCG Demand Remains Resilient
ITC Stock Faces Cigarette Pressure, But Brokerage Sees 68% Upside
New-Age Indian Stocks Rally, But Analysts See Uneven Upside
Bombay High Court Quashes Britannia Cheese Safety Case Over Safeguards
Bombay Burmah Shares Jump 9.5% After ₹249 Crore Block Deal
