How can rural demand revive if rural distress is knocking at the door?
While FY19 should see better rural demand, it may taper subsequently if rural incomes don't grow
A revival in rural demand is a central pillar in the argument in favour of buying FMCG stocks. The sector is holding on to an eye-watering price-to-earnings multiple of 41 times trailing 12-month earnings, compared to the broad market’s 23 times. A normal monsoon forecast is being seen as strengthening the case for a revival in rural demand.