Thanks for the details & your perspective. Last I had checked, current PE is around 50 for HUL. I maybe wrong.
Again, I have some doubts although cannot say for sure, but HUL was around 50 since a long time.
Regarding NIFTY PE vs HUL PE…I think in addition to EPS CAGR, what matters is the longevity & relative surety with less relative risks & variables for achieving that EPS CAGR.
I am not justifying the high PE nor have any opinion about it…just trying to see that if a relatively risky infra/defence/cement/power etc. can trade at “x” valuation, what can an FMCG trade at.
Of course with digital era there have been disruptions in terms of D2C, retail private labels & ecommerce…this is according me a defining decade in progress for what will be about to come…whether the delta to X would sustain or not…how rural, rurban & urban would behave and which FMCG firms are able to work their way around it & how soon & how efficiently…
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