The good times seen by fast moving consumer goods (FMCG) companies and their investors may hit a rough patch in the coming months, thanks to the current downturn in consumer demand and high stock valuations. This in contrast to the situation seen until the quarter ending December 2018, when the FMCG space saw strong investor support with a robust volume-led growth.
As a result, the average price-to-earnings (P/E) valuation of the FMCG sector (barring ITC) hit a high of 51-52 times, based on one-year forward estimates. This is a 32 per cent premium to the 10-year median of 38 times and ...
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