Mid and smallcap stocks show signs of excessive valuations; fundamentals key to long-term recovery: Amnish Aggarwal
«As far as your fundamentals or numbers or visibility is concerned, there is no big change in stance as far as IT services is concerned. Now, you can say they are actually dancing to the tunes of what happens in US today because that from the last 10-15 days that has become the most important narrative,» says Amnish Aggarwal, Prabhudas Lilladher.
You have a very strong association with the FMCG sector. You have tracked the sector for years now before you took over this new role. What do you make of HUL numbers?
Amnish Aggarwal: So, the numbers I would not say that there was anything big negative or positive in that because there are a few factors which are structural and a few factors which are cyclical.
Now as far as the cyclical factors are concerned, which today are visible in some of the segments, maybe due to food inflation, maybe due to the commodity inflation, so that will go away, maybe you can say 3Q was the worst, 4Q might show a little bit better numbers than 3Q.
But there are some structural issues which Lever is facing not now from past at least say two-three years or four years. So, your beauty and well-being. If you look at the past six-seven years, the CAGR in growth is hardly 4-5%. You look at say your Horlicks, this MFD category itself earlier was also in a jittery. Lever has not been able to do anything, now it is also degrowing. Now if you have got say 50% of your portfolio where the growth rates are not there or where there are structural issues, even if the demand comes back, your growth
