Best FMCG stocks to buy in 2024 - SMC Global Securities

Best FMCG Stocks to Buy in 2024 – SMC Global Securities

The fast-moving Consumer Goods (FMCG) market has proven on numerous occasions to be a solid and trustworthy investment option in the ever-evolving field of finance. The Indian FMCG business continues to prosper as we enter the promising year of 2024, fueled by changing consumer tastes, technology innovations, and a rising middle class.

What are FMCG stocks?

FMCG stocks represent shares in companies dealing with Fast-Moving Consumer Goods—products like food, toiletries, and cleaning items with a swift turnover. These stocks are valued for their defensive nature, displaying resilience in the face of economic fluctuations due to the consistent demand for essential daily items. FMCG companies often enjoy brand loyalty and widespread distribution networks, contributing to their stability.

Top 10 FMCG Stocks to Invest in 2024

  1. Hindustan Unilever Limited (HUL)
  2. ITC Limited
  3. Nestle India Limited
  4. Varun Beverages Limited (VBL)
  5. Britannia Industries Limited
  6. Godrej Consumer Products
  7. Tata Consumer Product
  8. Dabur India Limited
  9. United Spirits
  10. Marico

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Overview of Best FMCG Stocks to Invest in 2024

1. Hindustan Unilever Limited (HUL)

HUL thrives in India thanks to a broad range of personal care, home care, and food products. Renowned brands such as Surf Excel, Dove, and Lux reflect customer confidence, securing HUL’s leading position in the fiercely competitive market.

2. ITC Limited

ITC is a leading FMCG force in India, thriving on a diverse business canvas that includes consumer goods, hotels, agri-business, paperboards, and packaging. This strategic variety fosters stability, reducing reliance on a single industry and enhancing overall market resilience.

3. Nestle India Limited

Nestle India is a major force in the food and beverage industry, widely known for its endless commitment to health and wellness. The brand’s broad products, which include Kit Kat chocolates, Maggi noodles, and baby food, combine taste with stability.

4. Varun Beverages Limited (VBL)

VBL stands out in India’s FMCG sector, experiencing a significant rise. Its strategic partnership with PepsiCo amplifies global reach, while a diverse product lineup, from carbonated drinks to fruit juices, strategically addresses varied consumer preferences, solidifying its competitive edge.

5. Britannia Industries Limited

Britannia has a rich legacy dating back to 1892 and is a venerable presence in India’s culinary landscape, renowned for its cherished biscuits and bakery offerings. Britannia’s adeptness in adapting to evolving market trends is evident in its swift response to the rising demand for millets.

6. Godrej Consumer Products

Accumulating significant brand equity and consumer trust over time, Godrej has become synonymous with quality and reliability. This trust forms the bedrock for GCPL’s devoted customer base.

7. Tata Consumer Product

Historically linked with the prestigious Tata Group, Tata Consumer Product distinguishes itself by emulating its legacy of ethical, superior, and customer-oriented values, hence building long-term trust.

8. Dabur India Limited

Dabur takes the spotlight with its proficiency in crafting Ayurvedic and natural healthcare solutions, addressing the growing demand for traditional remedies. The diverse product range, featuring trusted offerings like Dabur Chyawanprash, Vatika hair oil, and Real fruit juices, has cultivated a loyal following among Indian consumers.

9. United Spirits

United Spirits has extensive Fast-Moving Consumer Goods (FMCG) offerings. Distinguished top-notch liquor and spirits, such as McDowell’s No. 1, Royal Challenge, and Signature, solidify its unrivalled position in the Indian market, encompassing numerous spirit categories.

10. Marico

Marico distinguishes itself through a dynamic portfolio tailored to diverse consumer needs, featuring renowned brands like Parachute, Saffola, Hair & Care, and Livon. Prioritising quality assurance and product consistency, Marico implements stringent measures to uphold consumer trust.

Latest Performance of Top 10 FMCG Stocks

Company Name CMP Rs. Mar Cap Rs.Cr. ROCE % CMP / BV Debt / Eq ROE % EPS 12M Rs. P/E Div Yld %
Hindustan Unilever Limited 2439.90 570,903 26.6  11.34 0.0253 20.5  42.40 55.3 1.61 
ITC Limited 431 5,38,037 39.0  7.8 0.0013 29.1  15.15 26.3 2.95 
Nestle India Limited 2,496 2,40,620 138  76.84 0.01 108  247.94 83.2 0.90 
Varun Beverages Limited 1,345 1,74,756 33.0  22.70 0.69 40.3  13.66 85.1 0.09 
Brittania Industries Limited 5,087 1,22,538 48.6  34.85 0.84 66.6  88.82 56.8 1.37 
Godrej Consumer Products 1,237 1,26,510 16.5 7.92 0.00 13.5  14.80 67.6 0.40 
Tata Consumer Product 1,162 1,10,762 9.32 5.18 0.00 6.86 10.27 89.7 0.73 
Dabur India Limited 537 95,034 22.7 15.36 0.09 19.5 7.75 54.0 0.98
United spirits 1,079 78,408 20.0 9.26 0.00 17.5  14.46 61.6 0.37
Marico 525 67,869 41.9 17.88 0.02 35.8 9.13 46.4 0.85

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Overview of the FMCG Industry in Indian Market

Customer preferences play a pivotal role in the fast-moving consumer goods (FMCG) sector, guiding businesses towards groundbreaking innovations. The route of this sector is undeniably influenced by a convergence of several factors, including digitalisation, sustainability, convenience, and the prevailing health and wellness trends.

Additionally, the future of the FMCG sector is gradually shaped by the influence of e-commerce, advancements in technology, growing environmental consciousness, and evolving regulatory landscapes.

Advantages and Risks Associated with Investing in FMCG Stocks

Investing in best FMCG stocks gives investors stability, durability, and a revenue flow. FMCG companies are attractive investments because they frequently have diversified product portfolios, strong brand loyalty, and defensive qualities.

On the other hand, dangers include fierce competition, shifting customer tastes, and recessions that impact discretionary spending. Challenges also include growing raw material costs and supply chain disruptions.

Why should you invest in FMCG stocks in India?

FMCG companies are regarded as defensive investments known for their reliability in market volatility. Investors seeking stability and regular returns in the dynamic Indian market consider the sector tempting due to its established brands, wide product portfolios, and ability to adjust to changing market conditions.

How do you start Investing in FMCG Stocks?

Get on the enriching journey of investing in Fast-Moving Consumer Goods (FMCG) products with SMC, the definitive haven for FMCG stocks. Start your journey in 4 easy steps with us:

  1. Go the official website of SMC Global Securities or simply download the app (SMC ACE)
  2. Open a free demat account
  3. Start investing

Conclusion

Investing in Indian FMCG stocks can be an exhilarating experience. With leading FMCG companies establishing their claims to supremacy and as the Indian economy grows, the industry’s upward trajectory offers investors an exciting future. However, picking the appropriate travel partner is essential for this thrilling adventure.

References: 
https://www.forbesindia.com/article/explainers/top-10-fmcg-companies-in-india-by-market-cap/89367/1

https://www.moneycontrol.com/promo/mc_interstitial_dfp.php?size=1280×540

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


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