Expect FMCG sector to be muted; margins to be disappointing: Mehraboon Irani, Nirmal Bang Securities

In a chat with ET Now, Mehraboon Irani, Nirmal Bang Securities, shares his views on the current outlook of the FMCG sector. Excerpts:

ET Now: What is your call in the consumption space?

Mehraboon Irani: From an investment angle, I like this space. However, the numbers may be disappointing in terms of margins for this quarter.

A large part of the market has started to expect numbers to be muted. I would look for buying in something like a Colgate that has come from Rs 1550 up to the present Rs 1275-odd levels. I treat it as an opportunity and people expect the margins to remain under pressure in Colgate.

Glaxo Consumer is another company which I like; Jyothy Labs in the midcap is an interesting name. Unfortunately, that stock has gone up from Rs 130 to around the present Rs 177 level. If that comes above 5 per cent-7 per cent, it would be a good buy because we have a target of Rs 200 for the stock.