FMCG, IT and pharma facing slowdown; new growth may come from privatisation: Manish Chokhani
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Indian equity markets may face a slow “derating” in sectors like FMCG, IT, and pharma unless companies change their models and innovate, according to Manish Chokhani, Director, Enam Holdings. Speaking to ET Now, Chokhani said IT companies risk losing relevance if they remain stuck in the outsourcing model. “They need to shift from just being processors to owning intellectual property and technology. Otherwise, growth will remain in single digits and current valuations won’t hold,” he said. FMCG and pharma struggles FMCG firms, despite excitement around GST cuts, are still low-growth businesses, Chokhani pointed out. “You can’t justify 40-45 PE multiples for companies delivering low single-digit growth,” he said. Pharma too faces challenges, with Indian firms still dependent on generics. “Global pharma leaders like Bristol Myers, Merck, or Roche trade at single-digit or mid-teen multiples despite innovation, while Indian generic firms are ...