Fast moving consumer goods (FMCG) stocks have been moving slowly in the recent past. Some of them have taken a beating while some have fallen slightly from their recent highs as investors lose fancy. Funds are booking at least partial profits in their FMCG holdings. Also, with a recovery now definitely round the corner, cyclicals would remain in flavour. So should investors sell FMCG? The Smart Investor conducted an opinion poll to see what some of the fund managers thought. SV Prasad, president, Zurich Asset Management Company, feels that the recent `low' prices of FMCG scrips largely represent a buying opportunity. Prasad is particularly bullish on HLL and Pidilite.
Farokh Pandole, vice president, Alliance Capital, also mirrors Prasad's view. He adds that in the past consumer spending has been weak, a fact which has been reflected in low volume growth for most FMCG companies. And yet, most FMCG companies managed to show good bottomline performance. Now with a recovery round the corner, consumer spending should improve. The fourth quarter with so many festivals could be the turning point. Pandole says, "Cyclicals have already run up hugely and so FMCG stocks are not so expensive vis-
