Quick note on FMCG and Consumer Discretionary Valuations
Historical valuation multiples of FMCG and Consumer Discretionary sector have continued to increase in the last 18 years, how much further can they go up
From Jefferies's report, it is worth noting how one-sided the increase in the valuation multiples of India-based FMCG and Consumer companies has been.
Investors who are looking to invest or are already invested here should ask themselves whether these multiples can continue to increase further from these current levels.
We at 91 Capital will continue to stay away from this sector (barring individual bottom-up companies where valuations are in our favour).