Looking for top FMCG stocks in India? FMCG is the most significant industry not only globally but also in India. It accounts for about 5% of all factory employment in India and makes up the fourth largest economic sector in the country, contributing close to 10% of GDP.
It is one of the most important economic sectors because it serves as a barometer, revealing the state of the overall economy and its demand and consumption patterns. The FMCG sector is usually the first to feel the effects of economic stress because consumers tend to cut back on their purchases of FMCG products first. Strong economic activity is reflected in rural and urban pockets’ robust consumption and demand patterns.
FMCG Stocks Sector in India
The Indian FMCG sector was valued at $179.94 billion in 2022 and is expected to grow at a CAGR of 27.9% by 2029, reaching nearly $1.07 trillion. Growing youth population, premiumization of existing product lineup, changing lifestyle, increasing brand awareness, rising internet users fueling online purchases, and new PLI scheme for the food processing sector are some factors contributing to the growth of the Indian FMCG sector.
There are three main segments in the Indian FMCG sector- Food & Beverages, Healthcare, and Personal and Household Care. With nearly half of the sector’s revenue coming from it, the personal and household care segment is the biggest of the three.
Top 5 FMCG Stocks in India
The Nifty FMCG Index, which comprises 15 large and mid-cap stocks has given a CAGR return of 15.93% in the last five years, as of June 28th, 2024.
Top 5 FMCG stocks included in the Nifty FMCG index, which account for 73.04% of the total , are as follows:
| Company | Nifty FMCG Index Weightage |
| ITC Ltd. | 31.46% |
| Hindustan Unilever | 22.14% |
| Nestle India Ltd. | 8.63% |
| Varun Beverages Ltd. | 6.86% |
| Tata Consumer Products Ltd. | 6.04% |
ITC Limited
| Market Cap | CMP (as of 9th July 2024) | All-time High Level | PE Ratio | 5 yr CAGR Return | ROCE (FY24) |
| ₹ 5,65,393 crore | ₹453 | ₹500 | 27.7 | 10% | 37.97% |
ITC Limited is a heavily diversified conglomerate with presence in the FMCG sector from cigarettes, foods, snacks, dairy products, beverages, personal care, household care, stationary products to agarbatti segments.
In FY24, ITC’s FMCG revenue was ₹21,002 crores, a 9.6% increase from the previous fiscal year. And, total FMCG revenue including cigarettes in FY24 is ₹54,670.12 crores, up nearly 8.4% from the same period in the previous fiscal year from ₹50,420.55 crores.
FMCG Revenue Breakup
| FMCG Business | FY23 (in crores) | FY24 (in crores) |
| FMCG- Cigarettes | ₹31,267.46 | ₹ 33,667.97 |
| FMCG- Others | ₹19,153.09 | ₹ 21,002.15 |
Hindustan Unilever
| Market Cap | CMP (as of 9th July 2024) | All-time High-Level | PE Ratio | 5 yr CAGR Return | ROCE (FY24) |
| ₹ 6,08,662 crore | ₹2,590 | ₹2,859.30 | 59.2 | 8% | 96.3% |
Hindustan Unilever is India’s largest FMCG company and has an extensive product portfolio in the household and personal care segments, and is also present in the foods segment with brands like Brooke Bond, Kwality Walls ice cream, Horlicks, Kissan, etc.
In FY24, HUL reported a total revenue growth of 2.6% year-on-year to ₹62,707 crores, from ₹61,092 crores in the previous fiscal.
Nestle India
| Market Cap | CMP (as of 9th July 2024) | All-time High-Level | PE Ratio | 5 yr CAGR Return | ROCE (FY24) |
| ₹ 2,53,882 crore | ₹2,633 | ₹2,771 | 64.7 | 18% | 114.4% |
Nestle is a Swiss multinational FMCG food & beverages company that houses popular food brands like Maggi, KitKat, Munch, Nescafe, Cerelac, etc.
In FY24, Nestle India’s total revenue from operations was ₹243,93.89 crores and profit after tax was ₹3,932.84 crores.
Varun Beverages
| Market Cap | CMP (as of 9th July 2024) | All-time High-Level | PE Ratio | 5 yr CAGR Return | ROCE 2023 |
| ₹ 2,09,392 crore | ₹1,612 | ₹1,674 | 96.8 | 62% | 21.26% |
Varun Beverages Limited (VBL) is the largest bottling company for PepsiCo beverages outside of the United States. VBL manufactures a variety of carbonated soft drinks, non-carbonated beverages, and packaged drinking water marketed under the Pepsi brand.
The company follows the calendar year as its financial year and in 2023, Varun Beverages total income was ₹16,400 crore, up from ₹13,429 crores in 2022.
Net profit in 2023 increased by 35% to ₹2,101.81 crores, from ₹1,550.11 crores.
Tata Consumer Products Limited
| Market Cap | CMP (as of 9th July 2024) | All-time High-Level | PE Ratio | 5 yr CAGR Return | ROCE (FY23) |
| ₹ 1,08,875 crore | ₹1,142 | ₹1,270 | 80.9 | 35% | 43.25% |
Tata Consumer Products is a leading global foods & beverages and largest tea company in India which houses brands like Tata Tea, Sampann, Tata Salt, Tata Starbucks, Himalayan Natural Mineral Water, etc. The company was earlier known as Tata Global Beverages Limited.
In FY24, the company earned about 10% more revenue compared to FY23 to ₹15,205 crores from ₹13,783 crores.
Conclusion
Solid companies with substantial brand equity, a diversified product portfolio, a robust distribution network, and consistent financial performance, the FMCG sector in India is one of the country’s most resilient and fastest-growing industries.
According to Nielsen’s report, the FMCG stocks sector is also witnessing a change in consumption behavior, with e-commerce platforms projected to contribute 11% of the overall FMCG sales by 2030. So, the companies with strong presence and visibility across both offline and online platforms are likely to witness growth in the coming years in terms of profitability and stock price.
FAQs on FMCG Stocks in India
What are FMCG stocks?
FMCG stocks, or Fast-Moving Consumer Goods stocks, pertain to shares in companies producing essential, quickly consumed goods such as food, personal care, and household items. These stocks are characterized by steady demand, brand recognition, low price points, and repeat purchases. Often considered defensive investments, FMCG stocks tend to remain stable even during economic downturns, offering consistent returns.
Why FMCG stocks are falling?
FMCG stocks may fall due to various reasons such as economic downturns, changes in consumer preferences, increased competition, rising input costs, or broader market trends. Economic factors, geopolitical events, and shifts in consumer behavior can impact the performance of FMCG stocks. Investors should stay informed about market dynamics, company fundamentals, and industry trends to make informed decisions in the ever-changing landscape of stock markets.
How to analyze FMCG stocks?
FMCG stocks, or Fast-Moving Consumer Goods stocks, represent shares in companies that produce everyday consumer products with a quick turnover. The fall in FMCG stocks can be attributed to various factors, including shifts in consumer preferences, economic downturns, increased competition, or disruptions in the supply chain. Investors should monitor market trends, company financials, and industry developments to understand the reasons behind the decline. Analyzing FMCG stocks involves assessing financial performance, brand strength, market share, distribution networks, consumer trends, competitor positioning, regulatory impacts, global influences, innovation strategies, and traditional valuation metrics like P/E ratio and dividend yield. A holistic approach to analysis is essential for making well-informed investment decisions in the FMCG sector.
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