Why FMCG Stocks Are Lagging Despite Policy Push | Sharad Avasthi Explains

FMCG stocks continue to lag despite supportive government policies, timely monsoons, and monetary easing. Sharad Avasthi, Head of Research (PCG) at SMIFS, explains why the sector hasn’t moved meaningfully. He cites expensive valuations, rising input costs like palm oil and milk, and disruption from new-age players such as Onasa. Traditional distribution advantages are fading in an increasingly digital world. While urban consumption is expected to improve, high valuation stocks may still struggle to justify their premiums. Avasthi believes the underperformance could continue for another year, but select emerging players might surprise on the upside. Listen in