Credit Suisse sees these FMCG cos gaining from low crude

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Moneycontrol Bureau

Brokerage house Credit Suisse sees FMCG companies like GSK Consumer, Dabur, Colgate Palmolive, Emami, and Hindustan Unilever seeing an expansion of between 18.-3.3 percent in their earnings per share for every 10 percent drop in crude prices, by way of lower input costs. The expansion is after assuming that the companies will utilize half of the benefits from lower operating costs on advertising and sales promotion.

Credit Suisse sees Asian Paints as the biggest beneficiary with a 6.5 percent increase in EPS for a 10 percent decline in crude prices, even after assuming that the company passes on some of the benefits to its customers by way of lower prices.

The brokerage sees L&T and Aban Offshore as being big losers from falling crude prices as oil exploration companies cut down on capex.