Indian FMCG stocks are currently trading at attractive valuations when compared to their 3-year historical P/E ratios. This suggests that these stocks may be undervalued relative to their long-term performance. The shift in market conditions which is driven by factors such as changing consumer demand, supply chain dynamics, disruptive business, and economic trends creates opportunities for investors to capitalize on potential growth. Investors need to analyze and assess the risk factors before investing on their own and understand the right entry price which determines the benefit of returns.
Listed below are FMCG stocks with Current P/E trading below its 3 Year Average P/E
Hindustan Unilever
Hindustan Unilever Limited (HUL) operates over 50 brands across food, personal care, and home care, while it serves around 9 out of 10 households in India.
The current Price to Earnings stood at 53.6 times compared to a 3-year P/E Average of 58.7 times.
With a market capitalization of Rs. 5,50,497.48 Crores, the shares of Hindustan Unilever Limited closed at Rs. 2,342.95 per equity share, up 0.11 percent from its previous day’s close price of Rs. 2,340.40.
Its Revenue from operations increased by 1.93 percent from Rs. 15,623 Crores in Q2FY24 to Rs. 15,926 Crores in Q2FY25, accompanied by profits of Rs. 2,657 Crores to Rs. 2,595 Crores.
Dabur India
Dabur India Limited was established in 1884. It is an FMCG company that specializes in Ayurvedic and natural products by offering over 250 brands across categories like health, personal care, and food.
The current Price to Earnings stood at 52.5 times compared to a 3-year P/E Average of 54.6 times.
With a market capitalization of Rs. 92,302.17 Crores, the shares of Dabur India Limited closed at Rs. 520.80 per equity share, down 0.07 percent from its previous day’s close price of Rs. 521.15.
Its Revenue from operations declined by 5.46 percent from Rs. 3,204 Crores in Q2FY24 to Rs. 3,029 Crores in Q2FY25, accompanied by a profit of Rs. 507 Crores to Rs. 418 Crores.
Jyothy Labs
Jyothy Labs Limited was founded in 1983. The company specializes in fabric care, dishwashing, personal care, and household insecticides with a diverse portfolio of trusted brands.
The current Price to Earnings stood at 36.7 times compared to a 3-year P/E Average of 41.4 times.
With a market capitalization of Rs. 13,818.28 Crores, the shares of Jyothy Labs Limited closed at Rs. 376.30 per equity share, down 2.22 percent from its previous day’s close price of Rs. 384.85.
Its Revenue from operations increased by 0.27 percent from Rs. 732 Crores in Q2FY24 to Rs. 734 Crores in Q2FY25, accompanied by a profit of Rs. 104 Crores to Rs. 105 Crores.
Tata Consumer Products
Tata Consumer Products Limited, a part of the Tata Group. They specialize in food and beverages while featuring iconic brands like Tata Tea, Tetley, and Tata Salt across 40 countries.
The current Price to Earnings stood at 70 times compared to a 3-year P/E Average of 73.2 times.
With a market capitalization of Rs. 95,735.07 Crores, the shares of Tata Consumer Products Limited closed at Rs. 967.55 per equity share, down 0.53 percent from its previous day’s close price of Rs. 972.70.
Its Revenue from operations increased by 12.85 percent from Rs. 3,734 Crores in Q2FY24 to Rs. 4,214 Crores in Q2FY25, accompanied by a profit of Rs. 364 Crores to Rs. 367 Crores.
Written by Santhosh S
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