Stocks of most FMCG multinationals rich in valuations: Anand Tandon

In a chat with ET Now, Anand Tandon, an independent analyst, shares his view on multinational companies.

ET Now: Have you looked at select MNCs. You cannot paint them with the same brush because their business models are different substantially. Having said that, a bunch of these names have had a good run. These include stocks such as Untied Spirits and Gillette. The whole smart city concept is doing extremely well. How you see MNC shares?

Anand Tandon: I like Gillette's business; it is quite interesting. I am not sure about the valuations, but I remain focused on whether MNCs are working in favor of domestic shareholders. Many a time, we have seen that whenever MNCs' exports from India surge, margins drop miraculously. This is generally followed by a buyback plan. Here, I am not talking about Gillette. I am just telling a general trend.

Therefore, not all MNCs, as you mentioned, can be painted by the same brush. But having said that, the managements which are focused on domestic shareholders add value. By and large valuations in FMCG are extremely expensive, therefore, I do not necessarily have a view on any of them.