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    Eye Britannia, Colgate Palmolive and ITC in FMCG space: Ajay Bodke

    Synopsis

    We are expecting Britannia’s revenues to grow at 17% CAGR over the next two years and the earnings growth of between 28% to 30% CAGR over the next two years.

    ET Now
    In a chat with ET Now, Ajay Bodke, Prabhudas Lilladher, shares his views on FMCG stocks
    What is your sense about consumer driven names and the stocks that you may like?

    Ajay Bodke: We are constructive on the consumer sector and the three stocks our analyst recommend to investors with a medium term perspective in the sector are Britannia, Colgate Palmolive and ITC.

    We have been positive on Britannia for the last year and a half and we still feel that there is tremendous value from a medium term perspective.

    We are expecting Britannia’s revenues to grow at 17% CAGR over the next two years and the earnings growth of between 28% to 30% CAGR over the next two years.

    The other company in FMCG we are positive on is Colgate Palmolive and there, we are expecting a revenue growth of 16.5% CAGR over this year and next year and a strong 18.5% earnings growth next year followed by 24% growth in earnings in 2016.

    ITC has underperformed massively as compared to the other players because of various concerns but we believe that the stock has become so inexpensive that one can start accumulating the stock although there is a concern about the hike in excise duties but the market more or less is discounted a hike in excise duties.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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