Hope you know that the FMCG industry comes in the top 5 industries in India. The industry is the growing very quickly in the few past years. In 2020, India’s FMCG industry value was 110 Billion USD and some experts said that the industry can reach the expected 220 Billion USD in 2025. So, it can almost double your investments if you invest in the best FMCG stocks in India.
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 two years vs now.
There are a lot of companies in the sector and you have to choose max 1-2 companies for investments among them. In this article, we will share only major FMCG stocks to invest in for good returns.
Related Posts:
- Best Infrastructure Stocks to Invest in India 2022
- Top 5G Stocks in India to Invest in 2022 – 2023
- How to Invest in Stock Market for Beginners in India
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 1 sector’s stocks. No matter what is the future of the sector. In case, you invested all the money in 1 sector, if the sector faces any issue then you’ll face a huge loss.
Rule #2: Invest a maximum of 5% – 7% of the total money in 1 stock. Suppose you have Rs. 1 Lakh the invest only 5000 – 7000 in 1 stock.
Rule #3: Invest in a maximum of 2-3 stocks of any sector. When any stock in the sector will face problems then other stocks will save you from huge losses.
Rule #4: Invest in any 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 did not get good returns on their investments.
Rule #5: Invest in stocks for at least 5 – 10 years to get very high returns. The 2022 year, the market is very negative as a result some beginner investors sold their holdings in panic. In short, the market will go up and down but in the next 5 years, it will give a very huge return.
Best FMCG Stocks in India
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.
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.
Below are sharing some FMCG Stock names with their leading industry. We will share information on only some best FMCG Stocks only in the post.
| S. No. | 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
Above we shared the list of the best FMCG Stocks 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.
Note: We strongly recommend you do your own research before investing and these are just for educational purposes. So, invest at your own risk.
We also request you to cross-check all the share fundaments data because by mistake any data could be incorrect. So, make sure you are checking all the data before investing in any stock.
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 |
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 6,37,914 cr. The 52-week high of the stock is 2859.30 and the 52-week low of the stock is 1901.55. Currently, the stock is trading at Rs. 2674 which is near its 52-week high.
Ratios
| PE Ratio | 62 |
| Price to Book Value | 12.23 |
| EV to EBIT | 48.06 |
| EV to EBITDA | 44.16 |
| EV to Capital Employed | 13.88 |
| EV to Sales | 10.53 |
| PEG Ratio | 4.28 |
| Dividend Yield | 1.39% |
| ROCE | 28.87% |
| ROE | 19.53% |
Shareholding Pattern
| Title | Sep 22 | Jun 22 |
|---|---|---|
| Promoters | 61.90% | 61.90% |
| FIIs | 14.04% | 13.30% |
| Mutual Funds | 3.71% | 3.64% |
| Insurance Companies | 7.26% | 5.95% |
| Other DIIs | 0.78% | 2.60% |
| Non-Institution | 12.31% | 12.60% |
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 rs. 4,16,247 cr. The 52-week high of the stock is Rs. 361.45 and the 52-week low of the stock is rs 207.00. Currently, the stock is trading at Rs. 331 which is near to it,s 52-week high.
Ratios
| PE Ratio | 23.97 |
| Price to Book Value | 6.31 |
| EV to EBIT | 18.30 |
| EV to EBITDA | 16.90 |
| EV to Capital Employed | 8.02 |
| EV to Sales | 5.74 |
| PEG Ratio | 1.20 |
| Dividend Yield | 3.43 |
| ROCE | 43.84% |
| ROE | 26.30% |
Shareholding Pattern
| Title | Sep 22 | Jun 22 |
|---|---|---|
| Promoters | 0.00% | 0.00% |
| FIIs | 13.47% | 12.68% |
| Mutual Funds | 9.59% | 10.00% |
| Insurance Companies | 20.72% | 20.91% |
| Other DIIs | 41.34% | 11.91% |
| Non-Institution | 14.88% | 44.50% |
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 1,04,737 Cr. The 52-week low of the stock is 3050 and the 52-week high of the stock is 4537. Currently, the stock is trading at 4307 which is near its 52-week high.
Ratios
| PE Ratio | 65.60 |
| Price to Book Value | 50.87 |
| EV to EBIT | 50.66 |
| EV to EBITDA | 46.17 |
| EV to Capital Employed | 23.63 |
| EV to Sales | 6.99 |
| PEG Ratio | 0.00 |
| Dividend Yield | 1.31% |
| ROCE | 46.64% |
| ROE | 77.54% |
Shareholding Pattern
| Title | Sep 22 | Jun 22 |
|---|---|---|
| Promoters | 50.55% | 50.55% |
| FIIs | 17.18% | 16.65% |
| Mutual Funds | 5.92% | 5.22% |
| Insurance Companies | 2.62% | 3.27% |
| Other DIIs | 7.72% | 0.24% |
| Non-Institution | 16.01% | 24.06% |
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 2,519 cr. Currently, the 52-week high of the stock is 201 and the 52-week low of the stock is 129. The current price of the stock is 175 as of now.
Ratios
| PE Ratio | 18.03 |
| Price to Book Value | 3.09 |
| EV to EBIT | 14.20 |
| EV to EBITDA | 13.54 |
| EV to Capital Employed | 9.63 |
| EV to Sales | 2.05 |
| PEG Ratio | 0.00 |
| Dividend Yield | 4.68% |
| ROCE | 67.80% |
| ROE | 17.12% |
Shareholding Pattern
| Title | Sep 22 | Jun 22 |
|---|---|---|
| Promoters | 38.04% | 38.04% |
| FIIs | 12.08% | 12.82% |
| Mutual Funds | 15.16% | 12.93% |
| Insurance Companies | 2.21% | 0.00% |
| Other DIIs | 0.10% | 0.00% |
| Non-Institution | 32.41% | 34.22% |
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 are very high 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 1,88,203 Cr. The 52-week high of the stock is 21050 and the 52-week low of the stock is 16,000. Currently, the stock is trading at 19,620 which is near its 52-week high.
Ratios
| PE Ratio | 81.29 |
| Price to Book Value | 81.88 |
| EV to EBIT | 59.15 |
| EV to EBITDA | 52.46 |
| EV to Capital Employed | 118.31 |
| EV to Sales | 11.62 |
| PEG Ratio | 17.55 |
| Dividend Yield | 1.06% |
| ROCE | 196.27% |
| ROE | 100.74% |
Shareholding Pattern
| Title | Sep 22 | Jun 22 |
|---|---|---|
| Promoters | 62.76% | 62.76% |
| FIIs | 12.05% | 11.65% |
| Mutual Funds | 4.03% | 4.01% |
| Insurance Companies | 4.07% | 4.42% |
| Other DIIs | 0.77% | 0.71% |
| Non-Institution | 16.32% | 16.45% |
FAQs
Some best FMCG stocks are shared above with some information about them and also 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 Stocks to invest in. These stocks are fundamentally strong as well as they are leading in some FMCG industry it 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 own research before investing.