“Last year's high base is also likely to hurt volume growth," Varun Lohchab, equity analyst, Jefferies India said in the note. Though rural growth continues to be ahead of urban, it has slowed down over the past few quarters. Jefferies has pegged volume growth for companies such as Hindustan Unilever, Dabur and Marico at 5%, 4%, and 7%, respectively, for Q1FY20. Nestle, the note added, is expected to clock 11% growth in domestic sales led by 7% volume growth. It also depends on what the budget brings to the table for the rural consumer.

Source: Mint July 04, 2019 09:45 UTC