Stay away from FMCG space: Ajay Srivastava

Ajay Srivastava, CEO of Dimensions Consulting is of the view that one should stay away from FMCG space for the time being.

Srivastava told CNBC-TV18, "We missed that 17 percent on HUL, because we were expecting a disappointing results, so we sold out and missed out. In FMCG we are telling the customers to stay away, book profits, lot of them have booked profit last week itself, because we are seeing a stagnant demand scenario, a very high profitability scenario and the tradeoff is whether the profitability will get accounted more in market cap or sales. Sales is going to be flat this year, so therefore we are telling our customers, for the time being book the profits and stay away.”
He further added, “When we see the sales growth coming back we will come back and reinvest; that is for the consumer staple. Last time liquor companies interest for the last two months are lot. Those two Mallya twins are the principal area of interest and focus for us.”