FMCG stocks like Britannia Industries and Pidilite can offer good value in medium term: Ajay Bodke

In a chat with ET Now, Ajay Bodke, Head-Investment Strategist & Advisory, Prabhudas Lilladher shares his views on FMCG stocks.

ET Now: What is your take on the FMCG space?

Ajay Bodke: In addition to the names like Jubilant Foodworks, Dabur, Bata and VIP, I would also look at stocks like Britannia Industries and Pidilite in the FMCG space.

Fundamentally, our analyst is very positive on these names. In Britannia, he is looking at a target price of Rs 1110 over a 12-month perspective. He is expecting a strong revenue growth of 15% in FY15.

With the earnings growth of around 21% in FY15 followed by 23-24% in FY16 and strong ROE of around 52% expected in FY16 and 47% in FY15, he is expecting an upside of around 32% in one year period in Britannia.

The second stock in FMCG is Pidilite, where we are expecting a strong growth in earnings of around 22% CAGR over 2015 and 2016 and strong ROE of around 29% in FY15. Valuations remain at around 21 times in FY16. These two stocks in FMCG space can still offer a good value in medium term.