FMCG stocks are always “expensive” but they are also “compounding machines” that quietly generate 25% CAGR returns and turn into multibaggers. Karvy has carried out a superb analysis of all the top FMCG stocks and identified the ones that you should buy and the ones you should avoid
Posts in category Stock Picks
Why Are We Afraid Of “Expensive” Stocks Like ITC
ITC has always been an “expensive” FMCG stock that a “value” investor would shun. However, with a splendid 48% return in this year itself, investors have to ask whether they are hurting themselves by avoiding so-called “expensive” stocks ITC, like its peers in the FMCG sector, has always been an “expensive” stock, quoting at an […]
Buy Navneet Publications For 29% Return
At CMP of Rs. 55, Navneet is trading at 13.6x and 11.5x of its FY13E and FY14E consolidated earnings respectively while on P/BV front, it is available at 3.1x and 2.7x respectively. We value NPIL at 17.5x of its FY13 EPS of Rs. 4.0 which entails a target price of Rs. 71. This indicates an upside of Rs.16 (~29%). We reiterate BUY on the stock, with a one year horizon
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