Graphic: MintThe packaged consumer goods sector’s sky- high valuations have appeared unrealistic for long, this column having written on it as well. If final crop output declines or if the government’s price support programme underperforms, rural growth could stumble. About half of most FMCG (fast-moving consumer goods) companies’ sales go towards meeting input costs. Advertising and promotion costs may remain high as a proportion of sales, as companies move to capitalize on higher growth. Or, high valuations and turbulent macro conditions are giving investors an excuse to move some of those gains to the bank.

Source: Mint September 05, 2018 03:35 UTC