Don't buy FMCG stocks, look expensive: Pathik Gandotra

Pathik Gandotra of Dron Capital told CNBC-TV18, “I would extremely be cautious on FMCG space after Unilever (parent company of Hindustan Unilever) warned that a slowdown in its emerging markets, including India, has accelerated in third quarter. If you look at the India HSBC services purchasing managers’ index (PMI), the number is showing a very steep decline sequentially. So I am going to be worried about consumer staple.”

“I would be watchful. I would not buy these stocks because they are anyway very expensive stocks. You could only justify these valuations if you could see consistent growth. So if they start faltering on growth, there could be very steep corrections in these stocks,” Gandotra said.