Although 2015 has not been an easy year for Indian industry in general, what with the disappointing rainfall and slow growth, FMCG companies seem to be more than a little worse for wear. “There is the reality of the rural market being under stress. We all know that this segment used to deliver 1.5-1.7x the growth seen in urban markets,” Hindustan Unilever’s CFO PB Balaji said during the company’s Q2 earnings call, as the company reported earnings lower than analyst estimates.
Not so fast
Slow growth and high valuations seem to be making investors wary of FMCG stocks
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