Fund managers will consider adding these stocks to their portfolios once the PE ratio shrinks.
Synopsis
Rising commodity prices could begin squeezing the profitability of consumer companies. So far, companies have managed to pass on higher input costs to consumers without causing a big dent in volume growth but it may not go on for long.
Mumbai: Investor interest in an investment theme that has been the harbinger of optimism in Indian stocks for almost a decade might be running its course. The country’s top fund managers are increasingly baulking at shares of companies that benefited from India’s famed consumption story as growing pressures on profitability are raising questions about seemingly impregnable stock valuations.
Top consumer stocks such as Hindustan Unilever,
