Won‘t be surprised to see consolidation in FMCG: Gandhi

Jayesh Gandhi, Executive Director, Morgan Stanley MF said he would not be surprised to see some consolidation in FMCG stocks despite decent set of numbers.

Gandhi told CNBC-TV18, “From our portfolio perspective, we have been underweight on large FMCG for some months and that was a valuation trade. According to our view some large FMCG companies had a good run up and valuations were ahead of longer term fundamentals.”
“As investors move more and more towards some of the riskier stocks or sectors, the so called defensive sectors will see some selling or cool off which has happened to some of the large FMCG names. I won't be surprised to see some consolidation in these stocks despite decent set of numbers. I think FMCGs are taking a breather after a very good run in 2011-12,” Gandhi added.