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Channel shift by consumers fuelling D2C growth: HUL

Updated at : 2022-01-22 19:10:04

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"If you look at the total FMCG industry, direct to consumers (D2C) is still a very small part of the total mix," HUL chairman Sanjiv Mehta said at an investor call. "A large part of the growth that is coming to many of the ecommerce players are not consumer growth; they are channel shift growth."

Nearly 590 new D2C companies have entered the Indian market in the past three years, and they have raised Rs 6,700 crore altogether, according to Tracxn, a market intelligence provider of private company data.

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Crypto-centric stocks dropped on Friday, with Coinbase Global Inc. at one point losing nearly 16% and falling to its lowest level since its public debut in the spring of 2021, Bloomberg data show.

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As the budget approaches, these tremors in the domestic markets are expected to continue in the coming week as well. History suggests that in 7 out of the last 10 years, Indian indices have delivered negative returns or remained range-bound in the week preceding the budget.

According to Vinall, when investors start their careers they rightly place a lot of emphasis on their analytical abilities and so they try and understand what a company does and analyse the various risks involved in all the different parts of its functionality after which they form an opinion on whether it’s a good investment based on that analysis.

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The operational performance across segments seems strong. The O2C plus oil and gas EBITDA is more than what the Street was working with. So, it is a better than expected result.

The bank reported a 31 per cent YoY drop in net interest income (NII) at Rs 1,764 crore from Rs 2,560 crore in the same quarter last year. Net interest margin (NIM) for the quarter came in at 2.4 per cent compared with 2.2 per cent in the September quarter and 3.4 per cent in the year-ago quarter.

Regional banks make a hefty chunk of their revenues from net interest margins, boosting their appeal as investors increasingly expect the Fed to hike interest rates more aggressively this year to control inflation. The central bank meets next week and is expected to raise interest rates as soon as March.

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You might see some degree of bounce shaping up on the indices but that four days of selling which you have seen on the trot for the indices indicate that there could be more pain ahead in terms of individual stocks.

Drugmaker Biocon is banking on the ramp-up of interchangeable biosimilar insulin glargine expecting the product to boost the revenue and profit growth in the next several quarters, primarily from the US market.

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