Here are the reasons why FMCG valuations will remain high in coming days

A strong performance is always rewarded whether it’s a field of sport, movie or even the equity market. And, it is exactly what most fast moving consumer goods (FMCG) companies are likely to experience. After some choppiness in the past few quarters due to note ban and then goods and services tax (GST) rollout, many companies have posted good volume growth. The road ahead is expected to be even steadier. It won’t be surprising then if investors’ love for this pack persists in near-to-medium term, keeping their valuations or price-to-earnings ratio (P/E) elevated going ahead. .....

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