The FMCG industry is one of the largest industries in India, as of now it comes under the top 5 industries of India. Most probably in the future, the industry will grow very quickly as the earnings of people increase with time and the consumption of FMCG products too. Almost every good investor has FMCG stocks for the long term in their portfolio.
The reasons behind the rapidly growing industry are people’s lifestyle changes, population, increasing income, and much more. You can also calculate it by your spending on FMCG products in the last two years vs now.
Due to social media and the Internet, the lifestyle of the pole is changing very quickly and they are consuming more products and they are becoming dependent on them. In the future, consumption of these products will increase very rapidly.
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What is FMCG?
FMCG (Fast-moving consumer goods) is one of the largest and fastest-growing sectors in the world. There is no doubt that the sector will perform very well in the upcoming years because people are changing their lifestyles, the population is growing, etc.
3 Major Segments in the FMCG Industry.
- House and personal care products account for 50% of sales in the industry.
- Healthcare accounts for 31% – 32% of sales in the industry.
- Food and beverages account for 18% – 19% of sales in the industry.
Investing Rules You Should Follow
Here are some investing rules given by experts to minimize your risk and maximize your profit or return on your investments. We strongly suggest you follow the rules in case you want good returns in the future.
All the below-mentioned rules are basic but hard to follow because of the fear of losing money. So, control your emotions and increase your knowledge of investing.
Rule #1: Do not invest all the money in one sector’s stocks. No matter what is the future of the sector. In case, you invested all the money in one sector, if the sector faces any issue then you’ll be in a huge loss.
Rule #2: Invest a maximum of 5% – 6% of the total money in any stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 6000 in any stock. This rule is applicable when you are retail, and can not track all the stocks.
Rule #3: Invest in a maximum of 2-3 stocks of a sector. When any sector faces problems then other sectors’ stock will save you from huge losses.
Rule #4: Invest in stock when the stock the available at a 10% low from its 52-week high. Some people invest in stocks at high, and as a result, they do not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 7 years to get very high returns. Keep booking the profit from time to time.
Rule #6: Keep averaging the stock if everything is right in the company and the stock is available at a high discount due to any market crash.
Rule #7: Before Investing in any stock make sure you check its fundamental and related news. It will help you to stay away from the stock which can give you huge losses.
Best FMCG Stocks for Long Term
There are a lot of companies that are involved in the FMCG business but some companies are leaders in the business. Also, there are a lot of industries in the sector and some companies are doing great or the leader in the industry. Different FMCG companies are leading in different segments which are mentioned in the below table.
So, if you are expecting any particular industry of the sector can perform very well in upcoming years then you should invest in the company/stock that is the leader or you think can do better in the sector.
Hope you also noticed the prices of most of the FMCG products increased but did not decrease. That is why a lot of investors love the investing industry is FMCG.
Below are sharing some FMCG Stock names with their leading industry. We will share information on only some best FMCG Stocks in the post.
| S. No. | FMCG Company | Industry |
|---|---|---|
| 1 | ITC Limited | Cigarettes & FMCG Products |
| 2 | HUL | Household & Personal Products |
| 3 | Bajaj Consumer Care Ltd | Household & Personal Products |
| 4 | Colgate Palmolive | Household & Personal Products |
| 5 | Emami Ltd | Household & Personal Products |
| 6 | Gillette India | Household & Personal Products |
| 7 | Marico Ltd | Household & Personal Products |
| 8 | Jubilant Foodworks | Restaurant Service |
| 9 | Nestle India | Food & Beverages |
| 10 | Dabur India | Household & Personal Products |
Best FMCG Stocks For Long Term
Above we shared the list of the best FMCG stocks for the long term with the industry in which they are leading. Below we will share some stocks and provide some information and some fundaments data too. It will help you to understand deeply about the company’s future.
and here are some best apps that allow you to buy and sell stocks online in India.
 Rating: 9.8/10 |  Rating: 9.1/10 |
 Rating: 8.5/10 |  Rating: 8.6/10 |
Disclaimer: We are not SEBI registered and the below-given share target price by brokerage firms, analysts (share price forecast), and analysis by us is only for educational purposes, not any buying or selling recommendation. We will be not responsible for any profit and loss.
1. HUL
HUL was founded in 1933 and HUL is the first company in the sector that crossed Rs. 5 lakh crore market capitalization in India. In short, we can also say that the HUL company is the leader in the sector. There are a lot of companies that are coming to compete with the HUL company.
There are 50+ brands of HUL companies in India and I’m very sure you are also using their products. Some popular brands are Vaseline, Dove, Closeup, Ponds, Horlicks, Rin, Red Lebel, AXE, and much more…
The Market Cap of the company/stock is around Rs. 6,15,663Cr. The 52-week high of the stock is Rs. 2,769.65 and the 52-week low of the stock is Rs. 2,393.00. The stock is trading at near 2620. (Data Updated on January 06, 2024)
Profit Growth
| Year | Profits in ₹ Crore |
|---|---|
| March 2019 | ₹6,060 |
| March 2020 | ₹6,764 |
| March 2021 | ₹8,000 |
| March 2022 | ₹8,887 |
| March 2023 | ₹10,144 |
Quarterly Results (Profit)
| Quator | Profit (In Crores) |
|---|---|
| Sep 2022 | ₹2,670 |
| Dec 2022 | ₹2,481 |
| Mar 2023 | ₹2,601 |
| Jun 2023 | ₹2,556 |
| Sep 2023 | ₹2,657 |
Company Essentials
| Market Cap | ₹6,15,663Cr | ROE | 20.42% |
| P/E Ratio (TTM) | 59.87 | EPS (TTM) | 43.77 |
| P/B Ratio | 12.22 | Div Yield | 1.49% |
| Industry P/E | 55.66 | Book Value | 214.35 |
| Debt to Equity | 0.03 | Face Value | 1 |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 14.36% |
| DII | 11.56% |
| Public | 12.18% |
| Promoters | 61.9% |
| Other Holders | 0.0% |
2. ITC Limited
ITC Limited is another very popular company among investors. ITC Limited is involved in the tobacco business, hotels, paperboards, paper packing, and more. ITC Limited is a leading company in the sector and now it is giving a huge return to its investors.
ITC Limited also gives a good amount of money as dividends and the company comes among the top high dividend-paying companies. As per experts, the company will give huge returns in the upcoming years.
There are a lot of brands and products of the company that we use regularly in our houses. You can check out their brands and products list on their official website.
The market up of the ITC Limited company is Rs. 5,91,219 Cr. The 52-week high of the stock is Rs. 499.70 and the 52-week low of the stock is Rs 326.40. Currently, the stock is trading at Rs. 473.95 which is near its 52-week high. (Data Updated on January 06, 2024)
Profit Growth
| Year | Profits in ₹ Crore |
|---|---|
| March 2019 | ₹12,836 |
| March 2020 | ₹15,593 |
| March 2021 | ₹13,383 |
| March 2022 | ₹15,503 |
| March 2023 | ₹19,477 |
Quarterly Results (Profit)
| Quator | Profit (In Crores) |
|---|---|
| Sep 2022 | ₹4,670 |
| Dec 2022 | ₹5,070 |
| Mar 2023 | ₹5,225 |
| Jun 2023 | ₹5,180 |
| Sep 2023 | ₹4,956 |
Company Essentials
| Market Cap | ₹5,91,219Cr | ROE | 29.21% |
| P/E Ratio (TTM) | 29.29 | EPS (TTM) | 16.18 |
| P/B Ratio | 8.56 | Div Yield | 3.26% |
| Industry P/E | 28.90 | Book Value | 55.39 |
| Debt to Equity | 0.00 | Face Value | 1 |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 43.34% |
| DII | 41.97% |
| Public | 14.69% |
| Promoters | 0.0% |
| Other Holders | 0.0% |
3. Britannia
Britannia is also a leading company in the FMCG sector and it is leading in the food industry. I’m sure that you are also using the products of the company because the products of the company can be found everywhere.
Britannia provides various types of biscuits, bread, dairy, cake, rusk, creme wafers, and croissants. Britannia’s biscuits are the most popular among all products and a reason can be a lot of types of biscuits.
The Market cap of the company is Rs. 1,26,985 Cr. The 52-week low of the stock is 3050 and the 52-week high of the stock is Rs. 5386.05. Currently, the stock is trading at Rs. 4,153.00 which is near its 52-week high. (Data Updated on January 06, 2024)
Profit Growth
| Year | Profits in ₹ Crore |
|---|---|
| March 2019 | ₹1,155 |
| March 2020 | ₹1,394 |
| March 2021 | ₹1,851 |
| March 2022 | ₹1,516 |
| March 2023 | ₹2,316 |
Quarterly Results (Profit)
| Quator | Profit (In Crores) |
|---|---|
| Sep 2022 | ₹491 |
| Dec 2022 | ₹932 |
| Mar 2023 | ₹558 |
| Jun 2023 | ₹455 |
| Sep 2023 | ₹587 |
Company Essentials
| Market Cap | ₹1,26,985Cr | ROE | 78.36% |
| P/E Ratio (TTM) | 50.07 | EPS (TTM) | 105.29 |
| P/B Ratio | 44.59 | Div Yield | 1.37% |
| Industry P/E | 55.66 | Book Value | 118.24 |
| Debt to Equity | 0.98 | Face Value | 1 |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 19.66% |
| DII | 13.85% |
| Public | 15.95% |
| Promoters | 50.55% |
| Other Holders | 0.0% |
4. Bajaj Consumer Care Ltd
Bajaj Consumer Care is one of the popular and leading companies in the FMCG sector. This company is leading in the hair oil sector and its product can be found in almost every home. The Bajaj Consumer Care products can be found in more than 33 countries.
The company provides hair care, skin care, hygiene, and other products. You can check their all products and brands on their official website. Some popular products of the company are Bajaj Amla drops, Bajaj Coco Onion, Bajaj Coconut Oil, Bajaj Brahmi Amla, and much more.
Bajaj Consumer Care Market cap is 2,669.96 cr. Currently, the 52-week high of the stock is Rs. 262.40 and the 52-week low of the stock is Rs. 150.90. The current price of the stock is Rs. 227.5 as of now. (Data Updated on January 06, 2024)
Profit Growth
| Year | Profits in ₹ Crore |
|---|---|
| March 2019 | ₹222 |
| March 2020 | ₹185 |
| March 2021 | ₹223 |
| March 2022 | ₹170 |
| March 2023 | ₹139 |
Quarterly Results (Profit)
| Quator | Profit (In Crores) |
|---|---|
| Sep 2022 | ₹31.66 |
| Dec 2022 | ₹33.20 |
| Mar 2023 | ₹40.46 |
| Jun 2023 | ₹46.22 |
| Sep 2023 | ₹37.28 |
Company Essentials
| Market Cap | ₹3,245Cr | ROE | 19.62% |
| P/E Ratio (TTM) | 20.64 | EPS (TTM) | 11.02 |
| P/B Ratio | 4.05 | Div Yield | 2.20% |
| Industry P/E | 55.66 | Book Value | 56.18 |
| Debt to Equity | 0.01 | Face Value | 1 |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 14.76% |
| DII | 17.42% |
| Public | 28.47% |
| Promoters | 39.35% |
| Other Holders | 0.0% |
5. Nestle India
Nestle India is a very popular company in the world. Nestle India is the largest company in the world in the food and beverage sector. Nestle India has more than 2000 brands which is much higher than other companies.
Some popular brands of Nestle India are Maggi Sauces, Maggi Pazzta, Bar One, Koko Krunch, Maggi Chuppa, Nescafe, munch, Milkybar, and many more. Visit Nestle’s official website to check out all the brands.
The Market Cap of the company is Rs. 2,57,131Cr. The 52-week high of the stock is Rs. 2,769.30 and the 52-week low of the stock is Rs. 1,788.00. Currently, the stock is trading at Rs. 2666.40 which is near its 52-week high. (Data Updated on January 06, 2024)
Profit Growth
| Year | Profits in ₹ Crore |
|---|---|
| March 2019 | ₹1,607 |
| March 2020 | ₹1,968 |
| March 2021 | ₹2,082 |
| March 2022 | ₹2,118 |
| March 2023 | ₹2,391 |
Quarterly Results (Profit)
| Quator | Profit (In Crores) |
|---|---|
| Sep 2022 | ₹661 |
| Dec 2022 | ₹628 |
| Mar 2023 | ₹737 |
| Jun 2023 | ₹698 |
| Sep 2023 | ₹908 |
Company Essentials
| Market Cap | ₹2,57,131Cr | ROE | 95.37% |
| P/E Ratio (TTM) | 86.53 | EPS (TTM) | 30.82 |
| P/B Ratio | 90.01 | Div Yield | 0.82% |
| Industry P/E | 62.51 | Book Value | 29.63 |
| Debt to Equity | 0.10 | Face Value | 1 |
Shareholding Pattern
| Held By | Holding % |
|---|---|
| FII | 12.1% |
| DII | 9.32% |
| Public | 15.82% |
| Promoters | 62.76% |
| Other Holders | 0.0% |
FAQs
Some best FMCG stocks are shared above with some information about them and their fundamental data. It is hard to say which stock is best because almost every popular FMCG company is doing great in some sectors.
It is hard to say because the FMCG sector is divided into multiple industries so it is hard to find no. 1 FMCG company in India but all the above-mentioned companies are no. 1 in their respective segments.
Yes, These companies grow continuously and it is also hard to compete with them. Day to day people are going to the city and as a result, the use of FMCG products will be high.
Final Words
Above we shared some best FMCG for the long term. These stocks are fundamentally strong as well and they are leading in some FMCG industries which means it will be very hard to beat them for other companies. We strongly recommend you follow investing thumb rules, and risk management, and do your research before investing.