While shares of both HUL and Varun Beverages fell 7% each, Avenue Supermarts fell as much as 6.5% before recouping some of those losses to end 4.4% lower.
Together, the three FMCG names wiped out ₹60,000 crore cumulatively in market capitalisation on Tuesday. HUL led the losses, wiping out over ₹35,000 crore in market value, both Varun Beverages and Avenue Supermarts lost over ₹11,000 crore each.
Hindustan Unilever reported June quarter results which were largely in-line or marginally below street expectations, even though the Home Care business grew at the fastest pace in three years.
However, the India business volume growth of 5% year-on-year for the quarter, turned out to be below the CNBC-TV18 poll expectations of 6% to 7%.
The 7% fall in shares of HUL turned out to be the biggest single-day fall for the FMCG major since March 23, 2020. The stock was also the top loser on the Nifty 50 index on Tuesday.
Varun Beverages also had a similar story, where numbers showed contraction on a year-on-year basis, particularly on the operational front.
The domestic volume growth stood at 14.4%, compared to street expectations which were above 20%. The company attributed this to the flat volume growth seen in April, while the rest of the months grew in the “twenties.”
The 7.4% fall seen in Varun Beverages also turned out to be the biggest single-day fall for the stock since March 2020.
Avenue Supermarts held its analyst meet today where the street was disappointed with no fresh change in the store addition outlook from the hypermarket chain parent and majority of the store addition is likely to come via the leased model.
The analyst community is also worried about quick commerce keeping a lid on same store sales growth in the urban centers and also on the fact that the store expansion plans could have been higher.
Shares of Avenue Supermarts saw some buying interest emerge at lower levels but still ended the session with losses of 4.4% at ₹3,850. The stock has now trimmed its year-to-date gains down to 3.6%.
