What are Some FMCG Top Stocks as Per Past Performance?
A meal needs to have all of the nutrients your body needs – only then would you be doing everything on your part to be healthy. The same stands for your investment portfolios. How could you possibly do that with your investments, right? This is known as portfolio diversification. Portfolio diversification can take you one step ahead of the game – which means you would not be putting all of your eggs in one basket. With portfolio diversification, your investments will be in different companies and different sectors, and your risks will be spread across a larger horizon. So, when the risk actually arises – you would not have a lot of it to incur.
In the process of doing that – have you thought about investing in FMCG companies? It is a sector you would want to invest in.
What are FMCG Companies?
Products that sell faster and at cheaper prices are known as fast-moving consumer goods. Due to strong consumer demand or because they are perishable, FMCGs have a limited shelf life. These commodities are frequently acquired, quickly consumed, inexpensive, and sold in large quantities. When they are on the store shelf – they also have a high turnover.
What Are Some Examples of an FMCG Company?
- Confectionery
- Batteries
- Some forms of medication
- Dairy products
- Bread and other baked goods
- Toiletries (e.g., toothpaste, deodorant)
- Alcohol and tobacco
- Fruit and veg
- Meat
- Soft drinks
Why is it Crucial to Invest in an FMCG Company?
Before you go ahead and check the 52-week high to know the best performing FMCG companies – you need to know how important it is to have them as a part of your portfolio for FMCG too.
1) There are a lot of Competitors for FMCG Companies
As many new companies have joined the market with superior products, the FMCG sector has faced fierce rivalry. Take Patanjali, for example, it was founded with the goal of producing authentic ayurvedic products, and the public went crazy over them. Other FMCG businesses, such as HUL and Dabur, have come up with new organic-based goods to stay competitive.
This never-ending competition has raised the FMCG sector’s value since more and more items are manufactured on a daily basis. Every company is coming up with something better to offer, which has pushed stock prices higher.
2) The Demand for FMCG Companies is Never-Ending
If you want to know why the FMCG business is developing so quickly, look no further than rural India. The rural areas account for 60% of the entire increase in the FMCG sector. The business is growing even faster as the government takes steps to make more consumer products available to individuals living in communities. This sector will continue to expand in valuation and stock prices as long as there is industrialization and the government implements initiatives to help rural areas.
On the other hand – if you look at the FMCG sector’s growth potential, you can readily anticipate that consumer goods will always be in demand, no matter what. You can earn a larger return over time by owning shares in a financially healthy and solid FMCG company, and you should consider holding your equities.
3) The Introduction of Start-Up Culture and Innovation Plays a Vital Role
The key reason why investors are optimistic about this sector is that it now allows for innovation that was before uncommon. The FMCG business has advanced thanks to start-ups that provide online services with door-to-door delivery. FMCG start-ups have discovered that doing “me too” business and relying exclusively on investor finance is insufficient for long-term success; instead, they are focusing more on technology to address market gaps.
Furthermore, for new FMCG businesses, online business and improved customer service have become important priorities. It has boosted healthy competition, and customers now have access to low-cost, high-quality goods. Other investors are always willing to buy shares of a solid start-up with growth potential. Therefore these start-ups present investors with speedy exit alternatives.
What are Some of the Top FMCG Stocks as Per Past Performance?
These are some of the companies that have been doing really well on part of FMCG.
1. Adani Wilmar
Adani Wilmar – is a joint venture between the Adani Group and the Singaporean Wilmar Group, which was founded in 1999. Adani Wilmar, out of all the firms on this list, is one of the newest entrants to the stock market, having debuted in 2022.
Despite being a newcomer, the organization has made headlines for its bold maneuvers on multiple occasions. The company’s market capitalization recently surpassed 1 lakh crore. In addition, the business has acquired Kohinoor Rice and Gangavaram Port, as well as is in advanced talks to acquire Ambuja Cements.
2. Hindustan Unilever Limited (HUL)
HUL is one of India’s oldest fast-moving consumer goods corporations. It is a subsidiary of the British-Dutch multinational Unilever. The business was founded in 1933 and is headquartered in Mumbai. For over 87 years, HUL has served over 2 billion clients.
HUL sells soaps, detergents, skincare, cosmetics, tea, and toothpaste under 35 different brands in 20 different categories. Famous brands include Surf, Excel, Dove, Lux, Lifebuoy, Clinic Plus, Wheel, Sunsilk, Knorr, Axe, and others.
For quite a long time – the company’s stocks have been doing really well.
3. ITC Limited
ITC Ltd. has thrived in Indian markets for over 110 years, providing them a unique perspective on the Indian consumer. The ITC is known for ensuring a high level of quality in production and packaging. In India, they have a diverse distribution network. This has allowed them to open multiple retail stores in even the most remote places.
Bingo, Sunfeast, Aashirvaad, Vivel, Savlon soaps and handwash, Papercraft, Fiama Di Wills, and Classmate are some of their brands. Wills Navy Cut, Silk Cut, India Kings, Bristol, Gold Flake Kings, Gold Flake Super Star, Gold Flake Premium Lights, Classic Menthol, and other brands are available from ITC, which has a 77% market share in Indian cigarettes.
4. Nestlé India
Nestle is a Swiss-based multinational food and beverage conglomerate. It has been here for more than a century worldwide. Nestle began operations in India in 1912 as the Nestle Anglo-Swiss Condensed Milk Company. They provide for Indian consumers’ nutritional and wellness needs.
Nestle sells a wide range of products, such as beverages, bottled water, milkshakes, morning cereals, instant foods, performance, health care nutrition, and so on. Nescafe, Maggi, Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, and more brands are among 2000 they presently possess.
5. Britannia Industries
Britannia Industries is one of the country’s oldest food manufacturers. It was founded in Kolkata in 1892 with a small starting investment of Rs. 295. Their products are sold in over 5 million stores worldwide.
More than half of Indian households are satisfied with their food selection. FMCG is known as the country’s first zero-trans-fat company. In India and 60 other countries, they have a large distribution network.
These are some of the best-performing FMCG companies of 2022. Though, there is quite a lot more that we can add to this list.
Conclusion
Well, according to the greatest economists of the world, human wants are unlimited – and until this goes on – so will the improving standards of FMCG companies. So, you can always make a smart move with FMCG companies as part of your portfolio.