Investors in consumer discretionary stocks believe the pent-up demand would be robust as the country gradually reopens post the second covid wave. Ltd’s analysts said, “Indian discretionary stocks are at a significant premium to global staples, discretionary and even China Tech as well as FAANG/ FANGMAN stocks! FANGMAN additionally includes Nvidia Corp. and Microsoft Corp.View Full Image Great expectationsBack home, among consumer discretionary stocks, Trent Ltd’s shares are the priciest, trading at a price-to-earnings (PE) multiple of 258 times, based on Jefferies’ FY23 estimates. The earnings growth estimates for consumer staples peers is lower in the range of 10-12.5%. The pricey valuations of consumer discretionary stocks mean any disappointments on the earnings front will be a rude shock.

Source: Mint July 06, 2021 17:26 UTC