Valuation in fast-moving FMCG stocks highest in nearly three decades

As a result, the valuation premium that FMCG stock enjoys over the broader market is at a two-decade high

As investors rush to grab a piece of India's consumer demand story, they have pushed the valuation of fast-moving consumer goods companies (FMCG) to the highest in nearly three decades. 

India's top consumer goods makers such as Hindustan Unilever, ITC, Nestle, Colgate-Palmolive, Dabur, Britannia, Asian Paints and P&G Hygiene are trading at nearly 48 times their earnings (or net profits) in latest trailing 12-months, up from 41.2 times at the end of March. The previous record high was 53 times at the end of March 1994 during the stock rally post 1991 economic reforms.

As a result, the valuation premium that FMCG