Best FMCG Stocks to Buy in India 2022 - Tips Mandi

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If you are an investor looking for a value investment in the stock market, you must check out the most durable FMCG sector stocks. The FMCG sector is the fourth largest sector in India, generating employment above three million people in India. In the last ten years, the revenue in the FMCG sector has been growing at the rate of 21.5%. According to analysts, the FMCG market has a projection at a CAGR (Compound Annual Growth Rate) of 14.5% to reach USD 220 billion by 2025. Here we listed out some best FMCG Stocks to buy in India.

Nifty FMCG Performance 

CMP: Rs. 37,279/-

52-week low: Rs. 33,407/-

52-week High: Rs. 42,021/-

The current Market Price is pretty much lower than its 52-week high value, making it a lucrative option to make an investment.

A brief Understanding of FMCG

FMCG stands for Fast Moving Consumer Goods. As the name suggests, the FMCG products are sold very quickly. The cost of these products or the FMCG manufacturer’s profit margin is pretty less than other businesses; though the profit margin is low, the sales are at a high volume. 

These goods are purchased frequently as they are highly perishable and consumed rapidly in large quantities. FMCGs have a pretty high turnover rate, making the market very competitive.

Some FMCG products are:

  • Beverages
  • Packaged foods
  • Personal care or beauty products
  • Over-the-counter drugs
  • Candies
  • Cosmetics
  • Ready to eat meals
  • Office supplies like a pen, marker, etc.
  • Fruits, vegetables, etc.

List of Best FMCG Stocks to Buy in India

In the FMCG sector, there are many market leaders. If you are confused about the best FMCG stocks to buy now, your wait is over. Here in this article, we will assist you in finding the best FMCG stock to buy.

We streamlined our research and brought you the 10 most promising FMCG stocks in nifty 50. After a short discussion about their businesses, we will look at a comparison chart.

ITC Ltd.

ITC, or the Imperial Tobacco Company, started its journey on August 24, 1910, as a cigarette-making company. Over time the company has diversified its business. ITC holds almost 30% of FMCG’s market share and has become one of the top FMCG stocks in the sector.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 1,070(again of7%).

Some key brands under ITC are:

  • India Kings(cigarette)
  • Classic(cigarette)
  • Gold Flake(cigarette)
  • Navy Cut(cigarette)
  • Bingo(salted snacks)
  • Aashirvaad(staples and spices)
  • Savlon(antiseptic liquid)
  • John Players(clothing)
  • Classmate(stationary)

NESTLE India Ltd.

Nestle is the world’s largest food and beverage company, established on March 28, 1959. Nestle was able to understand the daily food habit of Indians. At present, Nestle holds over 5% of the FMCG market share.

If someone invested Rs. 1,000 exactly five years ago, it would have grown to Rs. 2,530(a gain of 153%).

Some key brands under NESTLE India are: 

  • Nescafe(coffee)
  • KitKat(chocolate)
  • Munch(chocolate)
  • Maggi(noodles)
  • Polo(Mint & sweet confectionery)
  • Milkmaid(a milk product)

Hindustan Unilever Ltd.

Hindustan Unilever Ltd or HUL is the market leader in the FMCG segment, established in 1931. HUL has a strong presence in the Indian FMCG market with over 20 consumer categories.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 2,250(a gain of 125%).

Some key brands under HUL are: 

  • Axe(men’s grooming product)
  • KwalityWall’s(ice cream)
  • Dove(soap)
  • LifeBuoy(soap, hand wash)
  • Brooke Bond Red Label(tea)
  • Vim(dishwashing soap & liquid)
  • Vaseline(petroleum jelly)
  • Bru(coffee)
  • Glow & Lovely(skincare)
  • Lakme(cosmetics)
  • Ckoseup(dental hygiene)

Britannia

Established in 1892, Britannia is one of the oldest companies in the country. Well it is known for its biscuit and cake products. Over a while, Britannia earns praise from its investors as the company has made a good return.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 1,867(a gain of 87%).

Some key brands under Britannia are: 

  • Good Day(biscuit)
  • Nutri Choice(biscuit)
  • Marie Gold(biscuit)
  • Little Hearts(biscuit)
  • Bourbon(biscuit)
  • Tiger(biscuit)
  • Milk Bikis(biscuit)

Godrej Consumer Products Ltd.(GCPL)

When counting the country’s top FMCG stocks, nobody can ignore the strong presence of Godrej Consumer Products. The range of products with affordable prices has made its strong presence since its inception in 2001.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 1,293(a gain of 29%).

Some key brands under Godrej Consumer Products Ltd. are: 

  • Good Knight(mosquito repellant)
  • Cinthol(hygiene product)
  • Ezee(liquid detergent)
  • Godrej Expert(hair color)
  • Aer(fragrances for car and house)
  • Godrej No. 1(bath soap)

Dabur India Ltd.

Established in 1884, Dabur is one of the country’s best Ayurvedic and Natural health care companies. Dabur is a company with strong fundamentals and has maintained its purity for over 136 years.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 1,870(a gain of 87%).

Some key brands under Dabur India are: 

  • Odomos(mosquito repellant)
  • Dabur Red(ayurvedic toothpaste)
  • Odonil(home fragrance)
  • Chyawanaprash(dietary supplement)
  • PudinHara(ayurvedic medicine)
  • Lal Tail(ayurvedic baby massage oil)
  • Vatika(coconut hair oil)
  • Glucose-D(energy drink)
  • Gulabari(rose water skin cleanser)

Marico Ltd.

One of the most promising names in the FMCG sector. Marico offers a wide range of consumer products in the beauty and wellness segment. The company has a strong presence in the stock market as well.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 1,660(a gain of 66%).

Some key brands under Marico Ltd. are: 

  • Parachute(hair oil)
  • Saffola(edible oil)
  • Livon(hair serum)
  • Revive(cold water starch)
  • Set Wet(grooming products)

Tata Consumer Product Ltd.

Tata brand is omnipresent in every business sector in the country. Tata’s most trusted Indian brand offers a specific consumer product company combining the food and beverage products under one umbrella.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 5,000(a gain of 400%).

Some key brands under Britannia are: 

  • Tata Tea
  • Tetley(green tea)
  • Tata salt
  • Tata Sampann(packaged pulses)
  • Vitax(fruit tea)
  • Himalayan Natural Mineral Water
  • Eight O’Clock coffee
  • Tata Coffee Grand
  • GlucoPlus(energy drink)

Jubilant Foodworks Ltd.

Jubilant Foodworks Ltd. Engage in food services. The company has legal rights to develop and run Domino’s Pizza brands in India, Bangladesh, Nepal, and Sri Lanka, and the same rights it has for Dunkin’ Donuts restaurants in India.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 4,910(a gain of 391%).

Some key brands under Jubilant Foodworks Ltd. are: 

  • Domino’s Pizza(pizza restaurant chain)
  • Dunkin Donuts(baked goods and coffee)

Procter & Gamble Hygiene and Healthcare Ltd.

This FMCG player may not be well known by itself but by its wide range of products. This stock has made its presence in the top FMCG stocks to invest in with strong fundamentals.

If someone invested Rs. 1,000 exactly 5 years ago, it would have grown to Rs. 3,520(a gain of 252%).

Some key brands under P&G are: 

  • Pampers(baby diaper)
  • Ariel(detergent)
  • Tide(detergent)
  • Whisper(Feminine care pads)
  • Gillette(razor and skincare)
  • Head & Shoulder(haircare)
  • AmbiPur(Air care)
  • Oral-B(dental products)
  • Pantene(haircare)
  • Joy(dishwashing product)

Let’s have a look at a comparison table of all discussed company’s financials:

Stock Name Market Cap (in Cr.) Face Value (in Rs.) CMP (in Rs.) 52 week High (in Rs.) 52 week Low (in Rs.) Dividend yield(%) Promoter’s holding(%) Debt to equity ratio (%) Sale growth in last 5 years (%)
ITC 3,28,848 1 267 273 199 4.01 0 0 4.68
Nestle 1,64,054 10 17,011 20,609 16,457 1.16 62.8 0.13 9.98
HUL 5,04,998 1 2,150 2,859 1,901 1.60 61.9 0.02 9.60
Britannia 79,730 1 3,308 4,153 3,050 4.76 50.6 0.97 9.32
GCPL 77,471 1 756 1,138 660 0 63.2 0.21 5.54
Dabur 90,277 1 511 658 502 0.93 67.4 0.12 7.42
Marico 64,972 1 503 607 451 1.83 59.5 0.12 9.96
TCPL 70,512 1 765 889 614 0.78 34.7 0.09 12.9
JFL 32,781 2 497 918 488 0.24 41.9 1 6.32
P&G HHC 44,488 10 13,756 16,448 12,310 1.20 70.6 0 9.45

FAQs:

Ques – Which is the No. 1 FMCG Company in India? 

It is very tough to answer this. Because no one is best in every parameter, but if we take business size as prime, we could consider “Hindustan Unilever” as a winner as the company has the Largest Market Capitalization.

Ques – Which FMCG company pays the highest dividend?

We can see the “Dividend Yield” for the 10 most popular FMCG brands from the above table. We choose between ITC and Britannia to get such a good dividend.

Ques – Which one is the best FMCG stock to buy now?

If you have gone through the entire discussion, almost every brand we discussed is almost debt-free with decent or no promoter’s holding (both are equally good) and consistent sales growth. So, you can choose any from the list.

Ques – Are all FMCG stocks listed in nifty 50?

All 10 companies we have explored are listed in NSE and BSE. So, no availability issue is there.

Ques – Why is FMCG slowing down?

The FMCG sector is affected by worldwide high economic inflation, forcing these companies to hike product prices, promoting less consumption. But as FMCG products are perishable and inevitable from daily life, the future of this sector is fully secure.