FMCG companies may remain see marging pressure ahead: Fullerton Securities & Wealth Advisors

In a chat with ET Now, Rajnish Kumar, Executive Vice President, Fullerton Securities & Wealth Advisors, shares his stock ideas.

What do you make of the numbers that have come out from the FMCG basket, particularly HUL?

FMCG currently seems to have done reasonably well but we need to be careful of a few things - across the board most of them seem to have cut down on the ad spend of late while volume growth has been good and there has been a lot of pressure on the margins. So the next 1 or 2 quarters are going to be tough for FMCG companies because to what extent they are able to pass on the increased input prices to the customers is something to be seen. I would expect them to be under some bit of margin pressure and this cushion of reducing ad spend will not be there forever. So, we need to see them through for the next quarter or so and then probably get into that sector.