Tag: fmcgstocks

  • Rural Demand Recovery to Drive FMCG Growth to 6-8% in FY26: Crisil

    Rural Demand Recovery to Drive FMCG Growth to 6-8% in FY26: Crisil

    According to Crisil ratings, the FMCG sector would mildly recover in FY26, and revenue growth is estimated to get 6-8%.

    Breakdown of News:

    • In FY24 or FY25, the FMCG sector revenue growth was slow; the main reason was that rural demand was weak. Rural people’s income growth was slow; that’s the reason their spending was compressed.
    • Crisil believes that in FY26 demand would mildly improve, especially in rural areas, because their hope is monsoon will improve or government rural-focused policies will also impact.
    • Last some quarters, the FMCG company’s revenue increased because of a price hike, not because of sales.
    • Now the expectation is we see volume-based growth; in other words, people increase their spending power.
    • If rural income increases, then consumption would also improve.
    • If commodity prices are stable, then companies would maintain their margins easily.
    • Companies should launch new products and adopt a premiumization strategy to boost their growth.

    Overall, the FMCG sector may witness a gradual recovery, but full demand recovery will only happen when the rural market strengthens. Companies will now focus on sustainable growth and margin stability.

  • Best FMCG Stocks In India 2024

    Best FMCG Stocks In India 2024

    Hindustan Unilever Ltd

    Market Cap  ₹ 606,101 Cr.

    Debt  ₹ 1,043 Cr.

    ROE  18.4 %

    Sales growth  13.2 %

    EPS  ₹ 39.0

    Industry PE  62.3

    Stock P/E  66.0

    ROCE  24.4 %

    Promoter holding  61.9 %

    Pledged percentage  0.00 %

    PEG Ratio  4.22

    Net profit  ₹ 9,183 Cr.

    Return on Equity:

    10 Years: 45%

    5 Years: 36%

    3 Years: 28%

    Last Year: 18%

    Compounded Profit Growth:

    10 Years: 13%

    5 Years: 16%

    3 Years: 13%

    TTM: 11%

    Compounded Sales Growth

    10 Years: 8%

    5 Years: 10%

    3 Years: 10%

    TTM: 13%

    PROS:

    • Company is almost debt free.
    • Company has a good return on equity (ROE) track record: 3 Years ROE 28.4%
    • Company has been maintaining a healthy dividend payout of 96.4%

    CONS:

    • Stock is trading at 12.4 times its book value
    • The company has delivered a poor sales growth of 9.60% over the past five years.
    • Promoter holding has decreased over last 3 years: -5.28%

    Procter & Gamble Hygiene and Health Care Ltd

    Market Cap  ₹ 45,860 Cr.

    Debt  ₹ 5.10 Cr.

    ROE  79.3 %

    Sales growth  9.14 %

    EPS  ₹ 177

    Industry PE  62.3

    Stock P/E  79.6

    ROCE  110 %

    Promoter holding  70.6 %

    Net profit  ₹ 576 Cr.

    PEG Ratio  14.3

    Pledged percentage  0.00 %

    Return on Equity:

    10 Years: 44%

    5 Years: 58%

    3 Years: 62%

    Last Year: 79%

    Compounded Profit Growth:

    10 Years: 12%

    5 Years: 6%

    3 Years: 11%

    TTM: -12%

    Compounded Sales Growth:

    10 Years: 12%

    5 Years: 11%

    3 Years: 10%

    TTM: 9%

    PROS:

    • Company is almost debt free.
    • Company has a good return on equity (ROE) track record: 3 Years ROE 61.7%
    • Company has been maintaining a healthy dividend payout of 109%

    CONS:

    • Stock is trading at 62.0 times its book value
    • The company has delivered a poor sales growth of 11.0% over the past five years.

     

    Colgate-Palmolive (India) Ltd

    Market Cap  ₹ 44,494 Cr.

    Debt  ₹ 83.0 Cr.

    ROE  74.4 %

    Sales growth  3.30 %

    EPS  ₹ 38.8

    Industry PE  62.3

    Stock P/E  42.0

    ROCE  92.0 %

    Promoter holding  51.0 %

    Net profit  ₹ 1,055 Cr.

    PEG Ratio  3.15

    Pledged percentage  0.00 %

    Return on Equity:

    10 Years: 65%

    5 Years: 60%

    3 Years: 67%

    Last Year: 74%

    Compounded Profit Growth:

    10 Years: 9%

    5 Years: 13%

    3 Years: 13%

    TTM: -1%

    Compounded Sales Growth:

    10 Years: 7%

    5 Years: 5%

    3 Years: 5%

    TTM: 3%

    PROS:

    • Company is almost debt free.
    • Company has a good return on equity (ROE) track record: 3 Years ROE 67.4%
    • Company has been maintaining a healthy dividend payout of 98.0%

    CONS:

    1. Stock is trading at 25.8 times its book value
    2. The company has delivered a poor sales growth of 5.07% over the past five years.

     

WhatsApp chat