Slowdown in global food industry a worrying sign, but expect FMCG stocks to do well: Hemindra Hazari

In a chat with ET Now, market expert Hemindra Hazari shares his view on FMCG stocks.

ET Now: You like safe haven counters. But what about those five-digit stocks, which have just started to make a comeback again? We have seen a Page Industries moving to Rs 15,000 from Rs 14,000 levels. We have seen Jubilant FoodWorks touching new highs as well. Bosch has moved up by five-odd percentage. Do you like that any of these marquee branded names?

Hemindra Hazari: I do like select food names. That said, select food names may have seen pick up in same store sales (SSS), but they have been showing a declining trend. That has been the case with global majors in the US as well. For me, that is a worrying sign because are we a part of a global trend.

From what we have seen from Maggi, there is a lesson to be learnt that — food industry too may have some regulatory concerns.

The entire industry now has to restructure itself.

The news reports in fact show that these companies are slowing now waking up. So, this whole food thing may have to be relooked at.

Having said that, other names which are marquee brands would continue doing well. They may not do too well as I am expecting growth to decelerate. But definitely, they will do better than cyclical stocks.