FMCG stocks scale new highs despite high valuations in 2012

Fri, Dec 28, 2012 at 11:01

Investors continued to chase FMCG shares despite concerns that valuations did not justify the high stock prices. Even as the broader market picked up in the second half on hopes that economic reforms would gather steam, investors continued to lap up consumer goods stocks, betting on growing consumption theme.

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FMCG stocks scale new highs despite high valuations in 2012

Investors continued to chase FMCG shares despite concerns that valuations did not justify the high stock prices. Even as the broader market picked up in the second half on hopes that economic reforms would gather steam, investors continued to lap up consumer goods stocks, betting on growing consumption theme.

Like this story, share it with millions of investors on M3

FMCG stocks scale new highs despite high valuations in 2012

Investors continued to chase FMCG shares despite concerns that valuations did not justify the high stock prices. Even as the broader market picked up in the second half on hopes that economic reforms would gather steam, investors continued to lap up consumer goods stocks, betting on growing consumption theme.

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Moneycontrol Bureau

Investors continued to chase FMCG shares despite concerns that valuations did not justify the high stock prices. Even as the broader market picked up in the second half on hopes that economic reforms would gather steam, investors continued to lap up consumer goods stocks, betting on growing consumption theme.

Godrej Consumer Products , for instance, is up 93 percent since Dec 30, 2011. Most of its peers, including Hindustan Unilever , ITC , Dabur , Marico , Nestle India , GlaxoSmithKline Consumer and Colgate Palmolive , are up 20-50 percent.