|There are many factors to consider while investing in FMCG Industry. Few of which I would consider are - |
1) Industry Outlook - A trending Industry is always a affirming factor to invest in a stock in that Industry. If you look at FMCG, with increasing consumer demand in India there are high hopes of growth from this sector
.2) Economy - FMCG sector is consumer facing. Hence macro factors like Domestic Output and Per capita Income majorly affect the perfomance of this sector.
3)CPI - Consumer Price Inflation may help you decide the future trend for FMCG stocks. Entry/exit points - The price at which you enter a stock is crucial to determine your profits. Entering at high level when stock is over valued will be redundant since you are looking to invest
4) Peer Comparison - Peer comparison is another factor where you need to compare if your script is performing better or worse than peers. You may need to reconsider investing in a peer company if it shows better potential. ( You can make use for valuation ratios for this.)
PS- Different investors look for different factors based on their investing framework.