Avoid FMCG stocks except ITC: Dhirendra Tiwari

Dhirendra Tiwari, Head of Research at Antique Institutional Equities told CNBC-TV18, "In FMCG space, there is apparent volume growth pressure across product categories, there is no doubt about that, but the growth is still better than many other sectors. So that's the catch."

He further added, "We as a house have an elective view on FMCG. We have a neutral to negative view on most of the top tabs excluding ITC. There is a pressure on volumes, there is a likely moderation in growth rates, but if one looks at many other pockets of the industry, the growth rates are far worse. So it is a matter of choice. The way we see reversal in trend, there will be a major shocker for lot of investors in FMCG."
"The valuations are high, the growth rates are moderating, but still they are showing some sort of growth rates. So that is a divided view. Our view is that it is best to avoid it. One should be looking outside the space excluding the places where there is a monopolistic situation like cigarettes where ITC is like a monopoly. So those are the ones we will refer. Rest of them are definitely avoidable at this point in time or probably exiting because of high valuations," Tiwari said.