Suresh Kumar
The fast-moving consumer goods (FMCG) space has been out of action for a long time in the stock market. Over the last two times, the Indian stock requests have been dominated by stocks from the pharma and IT sectors originally.
The common chorus is that FMCG stocks quote at over 30 times P/ E, but that's off the point. What matters is that the volume growth in FMCG companies appears to be back. FMCG now looks to sustain about 7 volume growth and 5 consummation growth constantly time on time.
One of the sectors where the demonetization exercise took its risk was in FMCG. With nearly half of its incremental demand coming from pastoral and semi-urban areas, these were the worst hit by the demonetization exercise. A liquidity crunch in these-urban centers and detainments in consummation meant that FMCG companies saw a genuine compression in demand.
What we get to see in telecom assiduity moment is what was visible in the FMCG sector about 10 times back. For illustration, there was a clear pricing battle between Hindustan Unilever and Procter & Gamble in the cleansers space and at the end of the day; neither could really gain an important fresh share in the request.
