In this article, we look at two FMCG stocks to buy for an upside potential of more than 20%, recommended by the Trade Brains Portal. Further, we analyze the market’s performance yesterday and also look at some stocks to watch out for today.
In India, FMCG remains the 4th largest sector, contributing 3% to GDP and providing jobs to nearly 3 million people, with the market size being valued at $245.39 Billion in 2024 and expected to grow 15-17% by revenue in FY2025, driven by rising disposable incomes, rural penetration, and e-commerce expansion. Total revenue of the FMCG market is expected to grow at a CAGR of 27.9% through 2021-27, reaching nearly $ 615.87 billion.
Godrej Consumer Products Limited (GCPL)
- Current price: ₹ 1,243
- Target price: ₹1,495
- Upside: 20%
- Time frame: 12-14 Months
Why it’s recommended
In FY25, the GCPL’s consolidated volume grew by 4%. The total revenue as of FY25 stood at Rs 14,680 crore, growing by 2% YoY, and EBITDA stood at Rs 3,319 crore, growing by 3.3% YoY. The company has been successful in increasing its EBITDA margin through efforts like premiumization, better ad spend, and better realizations in international markets. In addition, the company aims to have a 2 billion customer base by FY27.
Internationally, their Indonesian business continues to be stable with 5% volume growth and 9% EBITDA growth driven by better distribution scale-up and successful launch of new products like Shampoo Hair Color and HI Electrics, etc. It is also aiming to foray into a new line of business, i.e., pet foods, branded as “Godrej Ninja”, looking for double-digit growth with an investment of Rs 500 crore over 5 years, and commenced production in H2 FY25.
GCPL is a prominent FMCG player in emerging markets, with a diverse portfolio that includes household insecticides, air fresheners, hair color, and soaps. It has manufacturing plants in Assam, Himachal Pradesh, Jammu and Kashmir, Madhya Pradesh, Meghalaya, Puducherry, Sikkim, and Tamil Nadu. The company has diversified revenue across geographies and product segments. It stood among the largest players in the household insecticide and hair care segments. The company touches over 1.2 billion consumers in more than 85 countries, with a strong presence in Asia, Africa, and Latin America. Some of its well-known brands include Godrej Aer, Park Avenue, Goodknight, Cinthol, KamaSutra, HIT, and others.
Risk Factor
As GCPL has a significant presence in Asia, Africa, and Latin America, any geopolitical tensions, currency fluctuations, or supply chain disruptions could have a negative impact on the margins. An increase/fluctuation in the prices of raw materials, especially palm oil, might hurt its profitability in the short term.
Dabur India Ltd
- Current price: ₹ 482
- Target price: ₹ 565
- Upside: 17%
- Time frame: 12 Months
Why it’s recommended
Dabur India Limited is among the top four FMCG companies in India. It caters to the business segments of healthcare, personal care, and food products. Over the years, the company has been focusing on manufacturing and selling ayurvedic products. Dabur offers over 400 products across 21 categories and over 1,000 Stock Keeping Units (SKUs), with a strong distribution network of 8.5 million retail outlets across India. The company has manufacturing facilities in 22 locations, with 14 in India and one each in the UAE, Sri Lanka, South Africa, Nepal, Egypt, Bangladesh, Turkey, and Nigeria, offering products in over 100 countries across the globe and contributing 26% of its business from international regions.
For FY25, the company has reported revenue from operations of Rs 12,563 crore, up by 1.3% from Rs 12,404 crore for the same period. Revenue from international business is Rs 3,281 crore, a growth of 7.7%. Dabur acquired 51% Compulsory Redeemable Preference Shares in Sesa Care Private Limited (Sesa) at a cash consideration of Rs 12.6 crore. Sesa holds the number three position in the ayurvedic hair oil category. It is expected to help the company expand its foothold in the ayurvedic oil business in the medium term.
Verticals contributing to Dabur’s domestic business: 49.7% from home & personal care, which grew by 0.5% YoY; 31.3% from healthcare, up by 2.2% YoY; 2% from food, increased by 18.4% YoY; and beverages contributing over 17%, increased by 8.8% YoY.
Risk Factor
The company is exposed to intense competition in the ayurvedic and herbal segment with multiple established players, including some large multinational players, as well as domestic companies. The company remains exposed to agro-climatic risk, which could result in variations in crop output/prices, as Dabur has a healthy dependence on agricultural commodities.
Market highlights of May 29
On Thursday, May 29, 2025, Indian stock markets bounced back after declining for two straight sessions. The BSE Sensex gained 320.70 points, or 0.39%, ending the day at 81,633.02, while the Nifty 50 advanced by 81.15 points, or 0.33%, closing at 24,833.60.
The upward movement in the market was widespread but showed a clear tilt towards sectors previously impacted by tariffs introduced during the Trump administration. The Nifty Metal index topped the sectoral charts, rising 1.21%. Welspun Corp jumped 10% after delivering strong fourth-quarter earnings. Other major metal players like Tata Steel, NMDC, and Hindustan Zinc also recorded gains. Meanwhile, the Nifty IT index moved up by 0.76%. On the flip side, the Nifty PSU Bank index slipped by 0.24%, and the defensive FMCG segment declined by 0.13%.
The BSE Midcap index registered a rise of 0.48%, and the Small-cap index followed closely, increasing by 0.44%. Despite this, the session suggested that large-cap stocks were the main focus for investors.
Global equity markets mirrored India’s positive trend on May 29, 2025. Japan’s Nikkei 225 climbed 1.88% after concerns about tariffs eased, following a U.S. court decision to block their enforcement. Similarly, Hong Kong’s Hang Seng Index rose by 1.35%, and China’s Shanghai Composite index added 0.70%, both reacting positively to the legal halt on the tariffs.
Indian indices opened weak but later recovered to close at their intraday highs, driven by optimism from global cues, particularly the U.S. court’s decision on tariffs. The Nifty 50 has been attempting to cross the 25,000 mark since May 12, but persistent global uncertainty has so far prevented a clear breakout beyond this psychological barrier.
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