Bearish on FMCG: IV Subramaniam

In a chat with ET Now, IV Subramaniam, MD & CIO, Quantum Advisors, Director, Quantum AMC, shares his views on FMCG sector.

ET Now: Do you think consumer staples especially consumer FMCG names have they corrected enough and do you think they offer a decent entry point once again names like ITC, HUL, Britannia, Colgate?

IV Subramaniam: I personally think they are still expensive and our in-house research still suggests that they are expensive and despite the fact that the growth is good for these companies whether you want to pay such high valuations at least we are not comfortable. We have seen these companies trade at lower valuations but it takes a long time for these kind of companies or it is like once in a decade opportunity to buy at extremely attractive valuations.

But I would rather wait and buy at attractive valuations then presume that things would work itself out even if you buy at higher valuations. Right now we do not have any consumer staple stocks in the portfolio. We sold out of HUL sometime around the beginning of last year and I continue to monitor it but at this point, I still find it expensive.