Our coverage universe is likely to see a 50 bps margin contraction due to a sharp rise in raw material prices. Palm oil, copra prices have risen 47%, 25%, respectively, in the last one year. Also, crude prices have risen above US$60 per barrel. Further, tea prices are still up ~50% YoY. This has pushed FMCG companies to take price hikes to the tune of 5-12%. We expect gross margin contraction for HUL, Marico and Tata Consumer. However, favourable prices of sorbitol & calcium carbonate would enhance gross margins for Colgate. Though milk prices have risen sharply in the last...