Small-cap FMCG (Fast Moving Consumer Goods) stocks are shares of companies in the fast-moving consumer goods sector that often focus on essential products like food, beverages, and household items.
These companies typically exhibit rapid sales growth and strong brand loyalty. Investing in small-cap FMCG stocks can be particularly attractive due to their potential for high returns on equity (ROE), offering investors opportunities in a dynamic and evolving market.
Here are three such small-cap FMCG stocks with high ROE:
Mishtann Foods Ltd
With a market capitalization of Rs.1,568 crore, Mishtann Foods Ltd share price closed at Rs.14.45 per share on Friday, down 0.069 percent from its previous close.
The stock reports a ROE of 98.7 percent and a ROCE (return on capital employed) of 88.7 percent. It is currently trading at a Price to Earnings (P/E) ratio of 4.50, significantly lower than the industry average of 42.0.
Regarding financial performance, Mishtann Foods experienced a 30 percent year-on-year growth in revenue for Q1 FY25, totaling Rs.383 crore. Additionally, net profit rose by 3 percent to reach Rs.71 crore.
Vadilal Industries Ltd
With a market capitalization of Rs.2,791 crore, Vadilal Industries Ltd share price closed at Rs.4,046.00 per share on Friday, 3.74 percent up from its previous close.
The stock reports a ROE of 31.0 percent and a ROCE of 27.1 percent. It is currently trading at a Price to Earnings (P/E) ratio of 18.3, significantly lower than the industry average of 42.0.
In terms of financial performance, Vadilal Industries reported a 13 percent year-on-year increase in revenue for Q1 FY25, reaching Rs.464 crore. Net profit also increased 8.5 percent to Rs.77 crore.
Gopal Snacks Ltd
With a market capitalization of Rs.5,324 crore, Gopal Snacks Ltd share price closed at Rs.423.00 per share on Friday, 1.09 percent down from its previous close.
The stock reports a ROE of 29.2 percent and a ROCE of 32.0 percent. It is currently trading at a Price to Earnings (P/E) ratio of 55.7, higher than the industry average of 42.0.
In terms of financial performance, Gopal Snacks reported a 11.3 percent year-on-year increase in revenue for Q1 FY25, reaching Rs.354 crore. However, Net profit decreased 14 percent to Rs.24 crore.
Hatsun Agro Product Ltd
With a market capitalization of Rs.25,378 crore, Hatsun Agro Product Ltd share price closed at Rs.1,154.00 per share on Friday, up 1.65 percent from its previous close.
The stock reports a ROE of 17.0 percent and a ROCE of 13.2 percent. It is currently trading at a Price to Earnings (P/E) ratio of 79.9, higher than the industry average of 42.0.
In terms of financial performance, Hatsun Agro reported a 10.5 percent year-on-year increase in revenue for Q1 FY25, reaching Rs.2,375 crore. Net profit also increased 64 percent to Rs.131 crore.
Written by – Siddesh S Raskar
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