FMCG to face considerable stress going into Q2: Saurabh Mukherjea, Execution Noble

Saurabh Mukherjea, Head of Indian Equities, Execution Noble, in a chat with ET Now talks about the auto sector and the FMCG space.

You are also bearish on FMCG. Defensives are not something that you are playing with right now.

The environment for FMCG is difficult both in terms of top line growth where the various challenges in rural India, which are hitting top line growth for the FMCG firms, and also in terms of EBITDA margin protection. Advertising spent amongst the FMCG players is rising sharply. The beneficiaries will be the media outlets such as the print media but the losers from that would be shareholders in FMCG firms who will see EBITDA margin pressure - particularly in Q2. So FMCG sector as a whole we see as one facing considerable stress as we go into Q2.