The Nifty FMCG Index has gained one percent so far in 2019 after rising nearly 12 per cent last year. The 15 member index trades at nearly 40 times its one year forward earnings which is also the 5-year average. It is still 7 per cent below the lifetime high level of 33,167 and analysts do not expect it to reach 33,610 in the coming one year. That implies a 9 per cent return.
Here’s a list of high price-to-earnings stocks and where do analysts see them one year from now.
Trades at 52-times expected FY20 earnings, which is above the 5-year average of 44 times. The stock is 4 percent below the lifetime high and analysts expect a 5 percent return for investors in the next one year.
Asian PaintsNSE -1.15 %
Trades at 50-times expected FY20 earnings, which is close to the 5-year average of 51 times. The stock is down nearly 6 percent from the 52-week high and analysts expect the stock to decline 4 percent over one year.
NestleNSE -2.01 % India
Trades at 56-times expected FY20 earnings, which is below the 5 year average of 64-times. The stock is 3.5 percent below the 52-week high and analysts expect it to remain flat during the next 1 year.
Trades at 68-times expected FY20 earnings. The stock is down 18 percent from lifetime high of 1698.7 per share and analysts expect it to remain flat over the next one year.
Britannia IndustriesNSE -0.26 %
Trades at 54-times expected FY20 earnings, which is above the 5-year average of 42-times. The stock is 8 percent below the lifetime high and analysts expect the stock to decline a little over one percent in the next one year.