Analysts find these stocks richly valued; can they still deliver?

Equity benchmarks may have come off over 6 per cent from August highs, but most consumer-oriented names are still trading at higher valuations. According to analysts, Hindustan Unilever (HUL), Nestle, Britannia Industries, Avenue Supermarts and Asian Paints, with PE multiples of over 50 times, are still rich against their 5-year averages, suggesting limited upside for the stocks, going ahead. Data suggest that forward P/E multiple based on FY20 earnings (FY20E P/E) estimate for HUL stands at 52 times against trailing five-year average of 44 times. This is even as shares of HUL are off 4.30 per cent from their 52-week high of Rs 1,870.50. The stock has potential to deliver 5 per cent return in coming 12 months, ETNow reported. 67552319 Price-to-earnings ratio is a valuation ratio that measures the company’s current market price as against its earnings per share. The ratio is also known earnings multiple or price multiple. Take Nestle, whose FY20E P/E is hovering at 56 times against five-year average multiple of 64 times. The scrip slipped 3.60 per cent from its 52-week high levels of Rs 11,700.05. The stock may remain flat over the next 1 year, according to the report. 67552298 Which stocks trade at high valuation and where do analysts see these stocks one year from now? @jayeshkhilnani tell… https://t.co/WDrQHRhk7r— ET NOW (@ETNOWlive) 1547610924000 D-Mart owner Avenue Supermarts is next on the list, which has plunged 18 per cent from its 52-week high levels. Forward multiples of the company is seen at 68 times with 0.60 per cent fall in coming months. Five-year average P/E figure is not available for D-Mart as the company got listed in March 2017. 67552308 With a share price of Rs 3,182.50, Britannia is hovering at a five-year average P/E of 42 times as against FY20E P/E of 54 times. Shares of the company have plunged over 8 per cent from their 52-week high of Rs 1,696.15. Market analysts see another 1.40 per cent downside in the FMCG major. 67552322 Shares of Asian Paints have slipped over 5.70 per cent from their 52-week high Rs 1,488.60. FY20E P/E of Asian Paints stands at 50 times against five-year average P/E of 51 times. There are expectations that the stock can slip another 4 per cent from the current levels. 67552327 67317117 66876172 66745695

from Economic Times http://bit.ly/2QOfOEB