At a time when large sections of the market are grappling with valuation fatigue and concerns over uneven consumption recovery, the fast-moving consumer goods (FMCG) and broader consumption space has largely been avoided by momentum-driven investors. Elevated multiples in consumer staples, coupled with slower-than-expected urban demand revival, have kept sentiment restrained. Yet, veteran market participant Sushil Kedia is taking a sharply contrarian view.

Kedia describes himself as an “unbridled bull” on FMCG and consumption, not because of near-term growth acceleration, but due to the role these businesses play during prolonged uncertainty. His core argument is behavioural rather than cyclical: when markets are dominated by volatility, geopolitical tensions, and macro noise, investor fear itself becomes a demand driver for defensive consumption stocks.

Global markets continue to operate under an overhang of persistent risks—tight financial conditions, geopolitical instability, and uneven global growth signals. In such an environment, risk appetite tends to oscillate rather than trend decisively. Historically, Indian markets have seen consumption stocks emerge as safe havens during phases of heightened uncertainty, even when earnings growth is modest.

Kedia believes this pattern is reasserting itself. According to him, the “non-positive” news cycle globally is unlikely to dissipate quickly. As a result, capital flows gravitate toward businesses with predictable demand, pricing power, and balance sheet resilience traits typically associated with FMCG and consumer-facing companies.

What differentiates the current phase, Kedia argues, is that the consumption story is no longer limited to staples alone. He traces the inflection back to last year’s Union Budget, which enhanced household disposable income through income tax adjustments and GST rationalisation. While the immediate impact was muted, demand has gradually filtered into discretionary categories.

White goods such as air conditioners, washing machines, and dishwashers saw improving traction over recent quarters as purchasing power stabilised. However, Kedia believes that this phase is now maturing. With a significant portion of pent-up asset consumption already addressed, the next shift is underway from owning goods to spending on experiences.

Experiential consumption, in Kedia’s view, represents the next durable growth engine. He points to hotels, restaurants, leisure parks, and travel-related services as emerging beneficiaries of this shift. The argument is grounded in observable behaviour: urban consumers, having met basic and discretionary appliance needs, are increasingly allocating incremental income toward travel, dining, and leisure.

This transition matters for markets because experiential businesses often demonstrate operating leverage once capacity utilisation improves. Unlike staples, where growth is steady but incremental, experiential plays can see sharper earnings expansion during demand upcycles provided balance sheets are healthy and execution remains disciplined.

Within travel-linked businesses, Kedia highlights BLS International Services, describing it as a structural beneficiary of rising overseas travel. The company’s exposure to visa processing and consular services positions it to gain from sustained outbound mobility, rather than cyclical tourism spikes.

In hospitality, he believes multiple hotel stocks are positioned for meaningful long-term re-rating, though liquidity remains a key consideration. For larger portfolios, he prefers established names such as EIH, where balance sheet strength and asset quality provide downside protection.

The quick-service restaurant (QSR) segment also features prominently in his thesis. Kedia remains constructive on Jubilant FoodWorks and Westlife Foodworld, citing their ability to capture the shift toward eating out as a lifestyle choice rather than an occasional indulgence.

Leisure and entertainment stocks such as Imagicaa and Wonderla Holidays are also on his radar. Long consolidation phases, combined with capacity expansion, could translate into operating leverage if footfalls remain strong.

Kedia does not restrict his optimism to consumption alone. He expects traditional cyclicals to participate in a broader market uptrend. In two-wheelers, he sees significant upside potential in Bajaj Auto and Hero MotoCorp, as rural demand stabilises and premiumisation continues.

He also remains positive on the passenger vehicle business of Tata Motors, particularly after its corporate restructuring, which he believes improves strategic clarity and capital allocation.