Jyothy Laboratory, Colgate, Dabur India good bets in the FMCG space: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani of Nirmal Bang Securities, shares his views on FMCG stocks. Excerpts:

ET Now: HUL is now at 723. ITC is also looking strong above 350 odd. Are these trades on your recommendation list?

Mehraboon Irani: FMCG and to some extent even pharma normally start performing better whenever the market feels that the high beta stocks and the cyclical stocks need to take a backseat. With this uncertainty at the fore - especially after what has happened around coal and power - you are virtually seeing more and more money shifting into the step. This is more as a protection and more to be in the market, because nobody can take a call on what is going to happen in the market.

Thus, if the cyclicals come back to form, may be money will again go back into cyclicals. But I do not see that happening. HUL is expensive because it deserves to be expensive.

I do not see ITC going above 375, despite it being a great company. This stock will continue to move between 310 to 375 over the next two quarters because at the present level, there are many reasons for me to put more money into this particular stock. But in FMCG, we like names like Jyothy Laboratory, Colgate and Dabur India.