Best FMCG Stocks In India To Invest In 2024

The FMCG sector is one of the most vital and fast-paced sectors of an economy. The companies in the FMCG sector sell essential goods that we use in our day-to-day activities and are in demand on a constant basis. 

Foods and beverages, personal care goods, household items and many alike commodities which are used in daily chores are a part of the FMCG sector. The FMCG is one sector which is not affected as much as other sectors because most of the goods under this sector are essential items which have become an indispensable part of our lives. FMCG sector is the barometer of consumer demand in the economy of a country. 

The Food and Beverages sector (19%), Healthcare (31%) and Household and Personal Care (50%) when combined make up the FMCG sector. It has been one of the fastest growing sectors in the last decade and will continue to do so in the future. The growing awareness among consumers, easier accessibility of the products and the changing lifestyle are some of the top reasons for the consistent growth of this sector in the last decade and this trend is expected to continue in the future as well.

 

From best stock market courses learn to predict the price movement of a stock using historical data and volume.

 

 

Best FMCG stocks in India

Here are the best FMCG stocks list, you can invest in 2024: Before investing in these stocks Investor must know how to choose stocks for long term investments by analyzing important ratios in the stock market.

 

1). Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited (HUL), based in Mumbai, is the biggest FMCG company in India. They're worth over Rs. 5.7 lakh crore and sell a huge variety of everyday products like soaps, shampoos, and food items. They're owned by a giant company called Unilever, and their brands like Lux, Lifebuoy, and Knorr are super popular in India.

HUL is known for giving out regular dividends to its investors, and they've been doing this for 35 years straight! The amount of money you get in dividends might be a little less than some other companies, but it's still better than most.  Because they sell so many different things and have such strong brands, HUL is a leader in the Indian FMCG market. People trust their products like Lux soap and Knorr noodles, and that's a big reason for their success.

 

2). ITC

ITC, a large Indian company founded in 1910, is a leader in many areas like cigarettes, hotels, packaged foods, and more. This variety helps them stay strong even if one industry has problems. Even though their stock price is down a bit this year, it's actually gone up 7% in the past month.

This might be a good time to invest in ITC because the stock price is attractive. While cigarette sales might not grow much, ITC is focusing on selling more expensive cigarettes which is good for business. Their other products like shampoos and snacks are also expected to do well.

 

 

3). Nestle India

Nestle India, a big company that sells food and drinks like Nescafe coffee, Maggi noodles, and Kit Kat chocolates, has been doing well lately. Their sales in India grew by about 9% in the last quarter (December) and over 13% for the whole year 2023. Even though sales are down a little bit so far in 2024, they're still up over 33% compared to last year!

A few reasons Nestle India is doing well include:

- They've been good at figuring out what prices people are willing to pay.
- They're selling more online and through vending machines.
- They focus on healthy and tasty foods that people trust, like baby food and Maggi noodles with different flavors.
- They keep coming up with new products that people want to buy.

 

 

4). Britannia Industries Limited

Britannia, a well-known Indian company since 1892, makes popular cookies and bakery items like Good Day and Tiger biscuits. They've been around for generations and know how to keep up with changing trends. For example, when people started wanting more healthy grains like millets, Britannia came out with Millet bread.

Even though their stock price is down a little bit this year, Britannia is doing okay. Their sales went up slightly in the last quarter, and their profit margin is healthy. They're planning to keep prices competitive and invest more in advertising to stay ahead.

Compared to other FMCG companies (which sell everyday household products), Britannia might be a good investment because their stock price is attractive, and they're expected to keep growing. This is because they have efficient ways of getting products to store, care about the environment, are selling online more, and have a variety of products people want.

 

 

5). Godrej Consumer Products

Godrej is a well-known brand in India, trusted by many for its high-quality products. They've built a loyal customer base by consistently making reliable and excellent items. Godrej has also grown by selling their products in many countries around the world. This allows them to learn what works in different places and use those strategies to be successful everywhere.
Here in India, Godrej is a leader in bug spray, hair dye, and is number two in soap! They make a wide variety of personal care and household items, and they're always looking for new ways to do things and be more environmentally friendly. Because of all this, Godrej might be a good investment for people looking to buy stocks that are likely to do well in the future.

 

 

Conclusion

Thinking about investing in Indian FMCG companies (companies that sell everyday household products)? It can be a good choice because people always need these things, and many brands are trusted by customers. But before you invest any money, do your research!  Understanding the market and what makes FMCG products successful will help you pick good ones to invest in for the long term.  Also, keep an eye on new trends, like electric vehicle (EV) stocks in India. This can help you diversify your investments across the whole market.