Apart from slowing volume growth, expensive valuations too remain an area of concern. While some stocks have reverted to their average one-year forward P/E multiples, many others continue to trade at a premium of anywhere between 10-30% over their average forward multiples. We rate ITC as our top pick in the large cap space, while we prefer Bajaj Corp in the midcap space. Though we like business models of Dabur and Emami, we would wait for a favourable opportunity to enter the stocks. Meanwhile, we remain sellers in all MNC names such as HUL, Nestle, Colgate and GSK Consumer. While we are negative on the first two stocks owing to prolonged recovery period for volume growth and rich valuations, we remain cautious on the last two names, mainly due to unfavourable valuations.
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Please DATE the recommendations or posts. Its tough to know if these are an hour old, a day old, a week old, a month old OR . . . . . .