Top 5 FMCG stocks to buy in 2022

 

Fast-moving consumer goods, also known as consumer packaged goods, are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.

Why FMCG stocks are important to add in your portfolio?

FMCG is the fourth largest industry in the Indian economy. The three main segments in the sector include food and beverages(19%), healthcare(31%), and household and personal care(50%). 

According to multiple reports published by World Bank and Neilsen Research, the Indian FMCG market in India is expected to grow at a CAGR of approximately 23.15%. The rise in rural consumption and better access to these consumable products has been a key growth factor for the industry. The rural FMCG market in India is estimated to grow to US$220.00 billion by 2025 from US$23.63 billion in FY2018. 

The major FMCG companies also exploited the pandemic as an opportunity in the crisis to focus on volumes and margins given the nature of the industry. The sector witnessed learning and innovation even as the world was grappling with the fear of lockdowns and Covid-19. 

There is strong demand for FMCG products no mater what , In FMCG The urban segment contributes around 55% in revenues of FMCG companies and 45% is contributed by the Rural segment. 

Also, FMCG stocks balanced out well with high growth stocks and gives steady returns in your portfolio.

I have compiled top 5 FMCG stocks you should add to your portfolio

5) Dabur India Limited

Dabur India Limited is a fast-moving consumer goods (FMCG) company. The Company operates in various product categories, such as hair care, oral care, healthcare, skin care, home care and foods.

Current CMP: 569.6

5 Year Returns: 81.7%

PE Ratio: 58.03

 

4) ITC

The official meme stock of India but it has outperformed most of the stocks this year so far. ITC Limited is a holding company engaged in the marketing of fast-moving consumer goods (FMGC). The Company operates through four segments: FMCG; Hotels; Paperboards, Paper and Packaging; and Agri Business.

Current CMP: 317.6

1 Year Returns: 51.6%

5 Year Return: 11.99%

PE Ratio: 25.82

 

3) Marico Ltd

Marico Limited is a consumer products company operating in the beauty and wellness space. The Company's principal products include edible oils and value added hair oils. Company's brands include Parachute, Nihar, Saffola, Hair & Care and Livon.

Current CMP: 169.25

1 Year Returns: 67.52%

PE Ratio: 55.52

 

2) Nestle India Ltd

Nestle India Ltd is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment. Nestle India manufactures products of truly international quality under internationally famous brand names such as Nescafe, Maggi, Milky bar, Nestea, etc. and in recent years the Company has also introduced products of daily consumption and use such as NestleMilk, Nestle slim Milk, Nestle Dahi, etc.

Current CMP: 19732.95

5 Year Returns: 181.28%

PE Ratio: 88.7

 

1) HUL – Hindustan Unilever Limited

HUL is India’s largest fast-moving consumer goods company. With 50+ brands spanning in various categories its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Glow & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Simple, Love Beauty Planet, TRESemmé, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s, Horlicks and Pureit.

Current CMP: 2606

5 Year Returns: 114.28%

PE Ratio: 68.96

 Which of the stocks do you own in your portfolio?