Godrej Consumer, Marico, HUL preferred picks: Elara Capital

Harendra Kumar of Elara Capital told CNBC-TV18, "We are very positive on FMCG space. I think the pay hikes are coming from June-July for the government employees and of course you have good monsoon. So, Godrej Consumer Products and Marico followed by Hindustan Unilever (HUL) are preferred picks at this current juncture. However, you have to see the space from the context that the government has gone out and announced a huge stimulus for the framers and the rural economy.""The government is talking about doubling farming which we had in our conference in terms of key discussion parameter. I think they have gone and specified humongous initiatives on that space. So, my guess is that from here on, the space will become stronger and the returns will be far higher. To leave a thought if the volume growth is 7 percent and if it doubles up from here, you can imagine where the stocks will go to," he said. "On the staples, which we have a contrarian view, the stocks will tend to do very well even now. It remains a structural buy but you can’t trade in these names because there are not liquid and very volatile. So, you need to continue to own HUL has a default consumption play into India and Marico and GCPL which are other midcap names which tend to do very well."