5 FMCG Stocks Rajat Sharma is Excited About for the Near Future

Rajat Sharma, Founder & CEO of Sana Securities, is bullish on several FMCG stocks. He believes these companies will perform well in the near term. Here’s what he has to say:

Sharma likes Hyundai as a stock, noting that while Maruti Suzuki is the market leader, Hyundai has a better product lineup and attractive valuations. He sees potential in Hyundai as it gets ready to be listed.

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When asked about Paytm, which has recently seen a 14% increase in its stock price, Sharma expressed that he has consistently recommended the stock. He highlights Paytm’s strong brand value and wide network of vendors. Despite a previous ban affecting its Payments Bank, he remains optimistic about Paytm’s business fundamentals.

Conversely, Sharma is not optimistic about Ola Electric, which he believes has weak fundamentals and is currently trading between ₹90-95. He thinks it might drop to its price band of ₹70-76 and advises against buying it.

On the topic of Hyundai versus Swiggy, Sharma firmly favors Hyundai. He acknowledges that Hyundai is a significant player in the market and should perform well once listed, while Swiggy, being a second mover, faces tough competition from Zomato.

Sharma highlights two sectors he’s excited about: pure FMCG and private banking. He is particularly interested in stocks like ITC, HUL, Asian Paints, Britannia, and Nestle, as they have not seen much growth lately. He specifically mentions adding Asian Paints and Hindustan Unilever to his portfolio due to their improving earnings.

In the private banking sector, Sharma notes that banks like HDFC Bank are trading at lower valuations compared to their historical performance. He believes this will eventually improve, making it a good time to invest.

He also sees potential in technology stocks like Infosys and Mphasis, which are offering good dividends and could benefit from the growing interest in artificial intelligence.

Finally, regarding Asian Paints, Sharma thinks that if the company acquires assets like AkzoNobel, it could benefit from the consolidation happening in the paints and cement sectors. As the market leader, Asian Paints would likely gain from any such deals.