In this article, we will be discussing the sectors which should be on the Investor’s radar in the calendar year 2022 with the developing scenario domestically as well as globally.
1) Multiplex Sector:
- The Multiplex sector earns the largest portion of its revenue from Maharashtra. And now Maharashtra Government has lifted COVID-related restrictions, there could be a revival of the multiplex sector in this calendar year.
- Multiplexes, Restaurants, Shopping Complexes are allowed to Function at 100% Capacity.
- 14 out of the 36 Districts in Maharashtra lifted COVID-related restrictions. The City names include Pune, Mumbai city, Mumbai suburban district, Raigad, Ratnagiri, Sindhudurg, Satara, Sangli, Kolhapur, Nagpur, Bhandara, Wardha, Gondia, Chandrapur
- Major players in Mutlipex Sector are INOX and PVR.
2) FMCG Sector:
- On account of ongoing geopolitical tensions between Russia and Ukraine due to which Commodity Prices are Soaring All-time High which led to Pressure on Margins of FMCG Companies.
- Some examples of commodity inflation are:
- Brent crude oil touched a high of $129 per barrel
- Crude palm oil is also at an all-time high of $1,854 per tonne
- Wheat prices on CBOT (Chicago Board of Trade) touched a high of $9.97 per bushel, last seen in 2008. Russia & Ukraine are major Exporters of Wheat, providing nearly 30% of Global Wheat Exports.
- In this situation, companies like HUL remain in a position to take calibrated price actions which not only helps them to maintain margin levels but also to gain market share from the unorganized market. For instance, HUL has taken prices hikes of 3%-13% in February 2021 across its product categories.
3) Oil Marketing Companies (OMCs):
- OMCs have not been allowed to pass on the Cost escalation ie. Rise in Crude Oil Prices by raising the Petrol & Diesel due to Assembly Elections.
- During this phase, Crude Oil Prices are already soared by 40-45%. Thus, a large hike is anticipated in Petrol, Diesel, Aviation fuels, and Gas (CNG / LPG) prices after March 10, 2022.
- Stocks in watch this sector are Reliance Industries, ONGC, and Oil India.
What Should Investors Do?
The Multiplexor the overall Entertainment & Hospitality sectors are expected to rebound with the removal of Covid-19 related restrictions. Further, big FMCG companies especially MNCs like HUL, Nestle India, etc. enjoy the advantage of calibrated price actions and gaining market share over a longer period. Then, Refining companies like Reliance Industries get benefited from rising crude oil prices, as they receive income in terms of margins as per its prices.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.