The Fast-Moving Consumer Goods (FMCG) companies manufacture and distribute essential consumer products that are sold quickly at relatively low costs. These products include food and beverages, personal care items, cleaning products, and other household goods, which are typically consumed or replaced frequently, making them essential to everyday life.
CRISIL forecasts 7-9 percent revenue growth for the FMCG sector in FY25, driven by increased volume and recovery in rural demand.
The FMCG sector, India’s fourth-largest, has been growing at a healthy rate over the years due to rising disposable income, a growing youth population, and increased brand awareness.
Household and personal care products account for 50 percent of FMCG sales in India, making the industry a significant contributor to the country’s GDP.
Following are a few large-cap FMCG stocks experiencing fluctuations in their share prices during Monday’s trading session and are currently in the news:
Britannia Industries Limited
With a market cap of Rs. 1.42 lakh crores, the shares of one of India’s leading food companies surged 1.6 percent on BSE to Rs. 5,941.05 on Monday, as against its previous closing price of Rs. 5,846.
According to the latest regulatory filings with the stock exchanges, Britannia Industries has secured all necessary approvals for the expansion of capacity at its Plant located at Ranjangaon, Maharashtra, with an investment of around Rs. 300 crores.
The Bakery Plant currently has a capacity is 1,64,550 tonnes per annum based on product mix, while the utilisation rate is nearly 70 percent (as of FY23-24).
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The proposed capacity addition for the Bakery Plant is around 60,000 tonnes per annum, financed through in-house accruals or borrowings, with the expansion expected to be completed by September 2024.
The company has reported a significant growth in revenue from operations, with a 6 percent YoY rise from Rs. 4,011 crores in Q1 FY24 to Rs. 4,250 crores in Q1 FY25. Similarly, the net profit increased by 11 percent YoY from Rs. 455 crores to Rs. 505 crores, during the same period.
The stock has delivered positive returns of nearly 30 percent in one year as well as around 11.3 percent returns year-to-date.
Britannia Industries Limited is primarily involved in the manufacturing and sale of various food products. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt.
Marico Limited
With a market cap of Rs. 87,728.2 crores, the shares of one of India’s leading consumer products companies operating in global beauty and wellness categories surged 1.8 percent on BSE to Rs. 678.2 on Monday, as against its previous closing price of Rs. 665.65.
According to the latest regulatory filings, Marico has agreed to acquire the remaining 40 percent stake in Apcos Naturals Private Limited, which owns the beauty products brand Just Herbs, for Rs. 70 crores.
This strategic investment will enable Marico to enter the premium, natural, and ayurvedic beauty segment and leverage the growing direct-to-consumer (D2C) sales channel.
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The acquisition is set to be finalised by 30th September 2024, increasing Marico’s stake in Apcos Naturals from 60 percent to 100 percent and making it a wholly-owned subsidiary of the company.
The company has reported a significant growth in revenue from operations, with a 6.7 percent YoY rise from Rs. 2,477 crores in Q1 FY24 to Rs. 2,643 crores in Q1 FY25. Similarly, the net profit increased marginally by 8.7 percent YoY from Rs. 436 crores to Rs. 474 crores, during the same period.
The stock has delivered positive returns of nearly 15.4 percent in one year as well as around 24.6 percent returns year-to-date.
Headquartered in Mumbai, Marico Limited is engaged in the business of manufacturing and marketing products under the brands such as Parachute, Saffola, Hair & Care, Mediker, Revive, Set Wet, Livon, Beardo, Just Herbs, Plix and others.
Hindustan Unilever Limited
With a market cap of Rs. 6.87 lakh crores, the stock surged 3.5 percent on BSE to hit a new 52-week high at Rs. 2,937.5 on Monday, as against its previous closing price of Rs. 2,838.45.
According to the latest regulatory filings, HUL announced the creation of an Independent Committee to assess the future of its ice cream business. This move aligns with Unilever PLC’s plan, announced in March 2024, to separate its global ice cream operations.
The Independent Committee, consisting of HUL’s independent directors, will review the ice cream division and propose future strategies. Their recommendations will be presented to the Audit Committee and the company’s Board for further consideration.
During a meeting on 6th September, the company’s Board approved examining potential structures and alternatives, with the final decision pending the committee’s recommendations.
HUL has assured that any final decision will adhere to SEBI regulations and relevant laws, potentially leading to significant changes in its ice cream operations.
The company has reported a marginal growth in revenue from operations, with a 1.4 percent YoY rise from Rs. 15,496 crores in Q1 FY24 to Rs. 15,707 crores in Q1 FY25. Similarly, the net profit increased by 2.2 percent YoY from Rs. 2,556 crores to Rs. 2,612 crores, during the same period.
The stock has delivered positive returns of nearly 15.4 percent in one year as well as around 10.2 percent returns year-to-date.
Hindustan Unilever Limited is in the Fast Moving Consumer Goods (FMCG) business comprising primarily of home care, beauty & personal care, and foods & refreshment segments.
Written by Shivani Singh
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