Buy into other sectors that might outperform rather than FMCG: Paras Adenwala

Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors in an interview with ET Now talks about FMCG stocks.

Are you pretty much gung-ho on FMCG space or do you think it is a non-event here and probably it just moves when markets are on a down dip, so counters like Dabur, ITC, Hindustan Unilever, do they excite you at all?

Yes, companies like Dabur do excite me. They have a very strong business model and have displayed tremendous amount of consistency in terms of performance but Hindustan Lever and ITC, while these are very large companies and have a very strong brand equity, there are better bets available in that space.

But FMCG as a sector, my sense is it has done extremely well in the last one year and has been a big outperformer. Do I find any values over the next one year in the sector? The answer is ‘No’, although fundamentally I do expect many of these companies to do very well but there are sectors, which have underperformed in the last one year, which can turn out to be an outperformer in the next one year and, therefore, I would rather buy into them rather than continuing to buying into FMCG.