Top FMCG Stocks in India

Best FMCG Stocks in India 2024 as per Analyst Ratings

The below table represents the best FMCG stocks in 2024 as per analyst ratings. We have chosen analyst ratings as a criterion to make the list as these stocks are rated by the analysts after a thorough market study.

Now, let’s have a look at the list-

Top FMCG Stocks in India in 2024 as per Market Capitalisation

Here is a list of the top FMCG stocks in India as per market capitalisation:

Overview of Best FMCG Stocks in India as per Analyst Ratings

The following section outlines a comprehensive overview of the best FMCG sector stocks in India as per analyst ratings:

1) ITC

Established in 1910, ITC transformed from a tobacco-centric company into a diversified conglomerate, expanding its presence in various sectors such as FMCGs, personal care products, agricultural commodities, paperboards, packaging, branded apparel, stationery, hotels, agarbattis, etc. Additionally, it expanded its branded packaged foods segment to include luxury chocolates, ghee, dairy and frozen food products.

Some of the popular food brands of this company include Kitchens of India, Aashirvaad, Sunrise, Bingo, Sunfeast Milkshake, Sunfeast Yippee, Candyman, Jelimals, GumOn, Fabelle, B Natural, etc.

Under the personal care segment, ITC offers a diverse range of products, including EDW Essenza, Dermafique, Fiama, Vivel, Engage, Superia, Nimyle, Savlon, etc. In the education sector, ITC provides Classmate and Paperkraft products. Additionally, the matches and agarbatti section includes AIM, Mangaldeep and Homelites. Its operations span across North America, Europe and Southeast Asian countries.

2) Varun Beverages

An Indian beverage company, Varun Beverages Limited (VBL) operates as a franchisee of PepsiCo. VBL manufactures and distributes a wide range of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including packaged drinking water under PepsiCo trademarks.

Some of the PepsiCo CSD brands produced and sold by VBL are Pepsi, Mountain Dew, Pepsi Black, Sting, Seven-Up, Seven-Up Nimbooz Masala Soda, Mirinda Orange and Evervess. VBL also produces and sells PepsiCo NCB brands like Seven-Up Nimbooz, Tropicana Slice, Tropicana Juices, Aquafina and Gatorade. 

Its food segment includes brands like Lays, Doritos, Cheetos and Kurkure. It has about 31 manufacturing plants in India, 2 in Nepal, and one each in Morocco, Zambia, Sri Lanka and Zimbabwe.

3) Godrej Consumer Products

Headquartered in Mumbai and established in 2001, Godrej Consumer Products Limited is one of the popular FMCG company, operating primarily in the home care and personal care sectors.

Its personal care brands include Saniter, PAMELAGRANT Beauty, Villeneuve, Millefiori, Cinthol, etc. Home care brands include Stella, Good Knight, Ezee, HIT, etc. Additionally, haircare brands encompass DARLING, PROFECTIV Mega Growth, INECTO, ISSUE, nupur, PROFESSIONAL, ROBY, AFRICAN PRIDE, Just for Me, nyu, etc. 

The company operates in India, Africa, Indonesia and other regions. Godrej Consumer Products Limited has subsidiaries, including Godrej Household Products (Lanka) Pvt. Ltd, Beleza Mozambique LDA, Godrej South Africa Proprietary Ltd, Godrej Africa Holdings Limited, Cosmetica Nacional, Godrej East Africa Holdings Ltd and Deciral SA.

4) Hindustan Unilever

Established in 1933, Hindustan Unilever Limited dominates the FMCG market in India with a strong portfolio comprising over 50 brands across 14 FMCG categories. These brands are essential for millions of people across the country in their everyday lives. The company operates in five segments: beauty and well-being, nutrition, ice cream, home care, and personal care. 

Their food segment includes products from brands Kissan, Knorr, Bru coffee, Magnum, Horlicks, Annapurna, etc. The company’s personal care segment focuses on skin cleansing, deodorants and oral care items. Its personal care products include Clinic Plus, Fair and Lovely, Ponds, Lakme, Sunsilk, Dove, Lifebuoy, Close Up, etc. Home care includes fabric care and cleaning products from brands like Domex, Sunlight, Surf Excel, Comfort, Rin, and others.

5) Britannia Industries

Britannia Industries Limited is well-known across the country as one of the top biscuit manufacturers. The company focuses solely on the food sector and has 7 different parts within it. Its product range includes bakery items like biscuits, croissants, bread, cakes, rusks and wafers, as well as dairy products such as milk, butter, cheese, ready-to-drink milk beverages, and yoghurt. 

BIL sells its products under various brands like Milk Bikis, MarieGold, Good Day, Tiger, Crackers, Treat, 50-50, Bourbon and NutriChoice, which remain popular today. The company distributes its products through distributors, vendors, direct sales channels and contract packers. It supplies its products to the Middle East, Africa, Europe, America and various other countries.

Factors to Consider Before Investing in FMCG Stocks in India

Here are some essential factors you need to consider before buying the best FMCG shares in India to make informed investment decisions:

• Supply Chain Management

It is important to understand how companies manage their raw materials throughout production. This ensures efficiency remains constant, safeguarding your investment from losses due to shortages in materials or finished products.

• Distribution Network

A well-organised distribution network is crucial for companies to reach their target audience effectively and boost profits through increased sales.

Examining the distribution network of FMCG shares in India gives you insight into potential sales smoothness and the company's ability to capture a larger market share.

• Financial Performance

Before you choose which FMCG stocks to buy, as an investor, you need to understand the company's current financial performance. You must examine the company's profit margins, how it makes money, return on equity and other important measures before deciding to invest.

• Brand Equity and Market Share

These two factors play a vital role in determining whether a company can sustain itself in the long run. To ensure the reliability of FMCG shares in India, you need to check that the company has a strong brand image among its target audience and that its market share remains consistent over time.

• Government Policies

When investing in FMCG stocks, it is important to think about how government regulations might affect the company's operations and profits. These regulations cover manufacturing, labelling and advertising, so you should consider their potential impact.

Should You Invest in FMCG Stocks?

Buying FMCG sector shares keeps you engaged in a diverse range of industries, from food and beverages to personal care and household products. These companies play a crucial role in India's economy, offering stability and growth potential. However, investing in FMCG stocks comes with its challenges.

FMCG stocks may be affected by changing consumer trends, economic conditions, and competition. To make informed decisions while investing in FMCG stocks, you must thoroughly research the market, stay updated on market developments, and monitor the financial performance of FMCG companies closely. Moreover, you must periodically review your investment strategy to ensure it aligns with your financial goals and risk tolerance. 

The Bottom Line 

The FMCG sector is rapidly growing and is expected to continue expanding in the coming years.

To make smart investment choices, you should stay updated with the FMCG stocks in India. It is a competitive industry with significant growth potential, providing attractive investment opportunities in the long run.