The economy of India is on a growing spree. The market is flourishing with newer demands for products and services, creating multiple opportunities for companies to innovate and meet consumer demands. With this, the demand for FMCG in India has been renewed.
FMCG industries are the manufacturers of daily goods required for human consumption.
There will be a huge demand for brands delivering better products at attractive prices.
The contribution of multinational corporations (MNCs) in India has been noteworthy.
FMCG MNCs have their core base in a different foreign land but have their business operations and functional assets in more than one country apart from their primary business area.
It is to be noted that FMCG dominates the market today as they cover a wide variety of products in the following categories:
- Home care products, such as toiletries, detergents, dish wash bars, etc.
- Personal care products include toothpaste, cosmetics, body soaps, shower gels, shampoos, etc.
- Food and beverages, such as refreshments, soft drinks, packaged foods and chocolates, etc.
The FMCG industry in India is spread across the demographics of rural and urban India. 60% of the consumption revenue of the FMCG market comes from the urban market in India.
Though the urban areas have spearheaded the growth of the FMCG industry in India, the semi-urban and rural segments’ contribution is growing faster, which is noteworthy. Their contribution makes up for 40% of the sector’s overall revenue.
Online investing in the stocks of FMCG companies has proved to be profitable consistently due to the above factors. It is to be noted that investors favour long-term viability & assurance offered by FMCG companies.
A few top FMCG companies listed on the stock exchange for online investing are as follows:
1. Hindustan Unilever Limited (HINDUNILVR)
HUL is one of the largest FMCG Companies of India, with a market capitalisation of more than INR 5 lakh crore. The EPS of the HUL shares are at 34.02, and PE recorded at 70. The HUL share price has been within the range of INR 2215.20 to INR 2859 in the last year.
2. Nestle India Limited (NESTLEIND)
Nestle has a host of brands such as Nescafe, Kit-Kat and Milkmaid, which come under confectioneries and beverages. The market capital of Nestle is standing at INR 1.7 lakh crore. As per last year’s reports, the Nestle share price has been within the range of INR 17,479 to INR 18,139.
3. Dabur India Limited (DABUR)
Dabur is a leading manufacturer of Ayurvedic products. Rural areas of India contribute to about 45% of its total revenue. Dabur’s share price has varied from INR 527.30 to INR 554.15 in the past years, making it an affordable buy to the commoner.
4. Britannia Industries Limited (BRITANNIA)
Britannia’s share price has varied from INR 3389.45 to a 52W high of INR 4153 in the past year with an outstanding dividend yield ratio of 4.40.
5. Godrej Industries Ltd. (GODREJCP)
Godrej’s Consumer share price is within the range of INR 793.85 – INR 836.90, with the current share price being INR 825.40.
After conducting the market study, the investors are satisfied that the returns from online investing of these stocks will help them build their online investing portfolio. It is advisable to understand the current trends of the market and their relevant effect on the stocks while doing online investing.