Go for selective buying in FMCG: Saurabh Mukherjea
FMCG companies are better placed from an inflation and pricing power perspective, but would prefer selective buying.
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| Updated: ET Now spoke to Saurabh Mukherjea, Head of Equities, Ambit Capital, on his view on Bharti Airtel.
What is the call on FMCG?
Historically, the FMCG companies have shown that they can deal with input cost prices much better than the B2B companies. So yes, they are better placed from an inflation and pricing power perspective than many of the other B2B names. The challenge however is valuations are fairly full for this sector as a whole. Hence I would prefer to do selective buying in a name like ITC for example rather than buy the sector as a whole.
What is the call on FMCG?
Historically, the FMCG companies have shown that they can deal with input cost prices much better than the B2B companies. So yes, they are better placed from an inflation and pricing power perspective than many of the other B2B names. The challenge however is valuations are fairly full for this sector as a whole. Hence I would prefer to do selective buying in a name like ITC for example rather than buy the sector as a whole.
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