Dipan Mehta, member of BSE and NSE told CNBC-TV18, "Unless there is some additional corporate action in terms of a further buyback or something like that, there is not really much to look forward to in Hindustan Unilever (HUL) at this point of time. Growth is clearly dismal, well below the averages what the Indian fast moving consumer goods (FMCG) stocks are generating.
He further added, "Although this space particularly is exciting and we are seeing growth in the FMCG, but it is not in the categories where HUL has a large position in. In the FMCG sector we are seeing various subsectors growing much faster than the traditional ones like soaps and detergents and the companies which are engaged in those subsectors are doing far better.
" So the best way to play FMCG stocks is to go with the Indian FMCG companies, the likes of Dabur India, Emami, Marico, maybe even a Godrej Consumer and Britannia Industries. All these companies will do far better than the MNC FMCG companies like Nestle, HUL, Colgate for that matter," Mehta said.
Disclosure: Analyst has investments and recommendations in lot of Indian FMCG companies.
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