FMCG and Pharma stocks are often referred to as defensive stocks due to their characteristics that make them resilient during economic downturns or periods of market volatility.
These stocks are considered defensive because they tend to maintain stable demand for their products regardless of economic conditions. This stable demand for their products ensures a steady revenue stream for these companies, making their stocks less susceptible to market swings.
Listed below are some of the defensive stocks with Net Profit Margins of upto 30 percent that you can add to your portfolio.
Abbott India
Abbott India Limited is engaged in the pharmaceuticals business with a portfolio of offerings in diagnostics, medical devices, nutrition products, and branded generic medicines.
With a market capitalization of Rs. 56,273 Crores, the shares of Abbott India Limited closed at Rs. 26,482.55, down 0.24 percent from its previous day’s close price of Rs. 26,545.40.
Abbott India Limited has delivered a return of 24 percent in a year and has reported a Net Profit Margin of 28 percent.
Its revenue from operations grew by 7 percent from Rs. 1,343.08 Crores in Q4FY23 to Rs. 1,438.63 Crores in Q4FY24, accompanied by net profits of Rs. 231.42 Crores to Rs. 287.06 Crores.
Glenmark Life Sciences
Glenmark Life Sciences Limited is primarily engaged in the business of research, development, manufacture, and marketing of active pharmaceutical ingredients (API).
With a market capitalization of Rs. 10,186.30 Crores, the shares of Glenmark Life Sciences Limited closed at Rs. 831.35, up 0.43 percent from its previous day’s close price of Rs. 827.75.
Glenmark Life Sciences has delivered a return of 57 percent in a year and has reported a Net Profit Margin of 28 percent.
Its revenue from operations decreased by 13.6 percent from Rs. 621.32 Crores in Q4FY23 to Rs. 536.6 Crores in Q4FY24, accompanied by net profits of Rs. 146.36 Crores to Rs. 97.94 Crores.
Dr Reddy’s Laboratories
Dr. Reddy’s Laboratories Limited is a global pharmaceutical company engaged in the business of offering a wide range of products and services including active pharmaceutical ingredients, generics, biosimilars, and over-the-counter medicines.
With a market capitalization of Rs. 96,783 Crores, the shares of Dr Reddy’s Laboratories Limited closed at Rs. 5,802, down 0.66 percent from its previous day’s close price of Rs. 5,840.45.
Dr. Reddy’s Laboratories Limited has delivered a return of 30 percent in a year and has reported a Net Profit Margin of 26 percent.
Its revenue from operations grew by 12.48 percent from Rs. 6,296.8 Crores in Q4FY23 to Rs. 7,083 Crores in Q4FY24, accompanied by net profits of Rs. 906.1 Crores to Rs. 1,309.8 Crores.
Nestle India
Nestlé India is the Indian subsidiary of Nestle which is a Swiss MNC, it is the world’s largest food and beverage company with more than 2000 brands ranging from global icons to local Favorites. It has a wide distribution network with More than 2,000 distributors and 4500 suppliers over India.
With a market capitalization of Rs. 2,35,861.77 Crores, the shares of Nestle India Limited closed at Rs. 2,446.30 down 0.85 percent from its previous day’s close price of Rs. 2,467.30.
Nestle India Limited has delivered a return of 13 percent in a year and has reported a Net Profit Margin of 17.73 percent.
Its revenue from operations grew by 9 percent from Rs. 4,808.4 Crores in Q4FY23 to Rs. 5,254.43 Crores in Q4FY24, accompanied by net profits of Rs. 736.64 Crores to Rs. 934.17 Crores.
Hindustan Unilever
Hindustan Unilever Limited is a Fast Moving Consumer Goods (FMCG) Company, it is primarily engaged in the manufacturing and supplying of consumer goods, operating through 5 segments i.e., Beauty & well-being, Personal Care, and Foods & Refreshments segments.
With a market capitalization of Rs. 5,44,975 Crores, the shares of Hindustan Unilever Limited closed at Rs. 2,319.45, down 1 percent from its previous day’s close price of Rs. 2,342.85.
Hindustan Unilever Limited has delivered a negative return of 13 percent in a year and has reported a Net Profit Margin of 16.61 percent.
Its revenue from operations grew by 0.53 percent from Rs. 14,953 Crores in Q4FY23 to Rs. 15,041 Crores in Q4FY24, accompanied by net profits of Rs. 2,601 Crores to Rs.2,561 Crores.
Written by: Bharath K.S
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