Hold ITC, book part profits on HUL: Gaurang Shah, Geojit BNP Paribas

In a chat with ET Now, Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services shares his views on FMCG space.

ET Now: What is your call on the FMCG the likes Dabur, HUL, ITC. How would you trade them?

Gaurang Shah: We have a hold on ITC. We have advised to book part profits on HUL. Godrej Consumer is the other name where we feel that there could be a potential upside even from the current levels. The stock has been consolidated for a long time. There will be definitely some more upside in stocks like Dabur and Marico.

If I have to just go by the numbers that these companies delivered in Q1 this fiscal, then I guess this time around they might be a little bit better.

The problem is with the input cost because a large part of the input for firms like HUL and ITC is in the form of agri commodities and if that is going to scale up then whether the companies are able to pass on to the end consumer or whether they are going to take some kind of hit on the margins, remains to be seen.

But in this quarter they will be better off but we will have to watch out for the next quarter.