Top 10 FMCG Companies in India to Buy Stocks in 2024

When it comes to investing in stocks, FMCG stocks top the list in terms of popularity and profitability. Comprising daily-use products like toothpaste, snacks, and cookies, the FMCG (Fast Moving Consumer Goods) sector is ever-developing, allowing your funds to grow faster. However, there are numerous FMCG companies. You must select the top FMCG companies in India to purchase stocks for higher returns. 

In this blog, we have shared a list of the top 10 FMCG companies in India to buy stocks from. But before that, let’s take an overview of FMCG companies. 

What is an FMCG Company? 

A company that produces non-durable daily-use products like processed food, ready-to-eat meals, energy drinks, baked cookies, dry fruits, medicines, cosmetics, etc. is called an FMCG (Fast Moving Consumer Goods) company. These products are quickly sold and consumed by customers in a short period. Buying stocks in such companies are considered beneficial because of their high and regular demands. 

Why to Buy Stocks in FMCG Companies?

Key reasons to purchase the top FMCG stocks in India are as follows: 

• According to Statista, FMCG is the fourth-largest growing sector, contributing to the GDP. The industry's market size is $110 billion. 
• FMCG products are in stable demand regardless of economic conditions. 
• Investing in FMCG lets you diversify your fund more efficiently.  
• Investing in top FMCG companies allows you to invest for long periods for steady growth. 

List of 10 FMCG Companies to Buy Stocks

1. Tata Consumer Products 

With its presence in every sector, Tata is one of India's top companies. In the FMCG sector, Tata produces various products and owns numerous brands. Tata Consumer is known for Tata tea and coffee. As per Tata's tea export portfolio, the company is the second-largest tea producer worldwide. Considering Tata's FMCG business for your investment can be beneficial. However, one must check the market cap and last traded price (LTP) and examine other factors before investing. 

• Market Cap- ₹115,655 Cr
• LTP - ₹1,214 

2. ITC 

From popular Ashirwad atta to Yippee noodles and Classmate copy,  ITC is a leading FMCG company in India. The company operated in other multiple sectors such as Hotels, Packaging, Paperboards & Specialty Papers, Agri & IT Businesses with a presence in FMCG, generating PAT (Profit after Tax) of ₹ 5,572 (as of 31.12.2023). 

• Market Cap- ₹523,660 Cr
• LTP - ₹420

3. Godrej Consumer Products 

Godrej serves 1.2 billion consumers and is among India's top FMCG companies. The company owns several brands, including Good Night, Cinthol, Hit, Park Avenue, Godrej no1, Stella, etc. 

• Market Cap- ₹124,293 Cr
• LTP - ₹1215.20

4. Dabur India 

Founded in 1884, Dabur India is one of the oldest FMCG companies. The company manufactures ayurvedic and healthcare products. Dabur states that it provides more than 250 Ayurvedic products. Dabur Honey, Chawanprash, Hajmola, Hair Oil, Lal Tel, Vatika Shampoo, etc, are among the popular brands of Dabur India. 

‍

• Market Cap- ₹93,156 Cr
• LTP - ₹525.70

5. Marico

Marico is an Indian multinational consumer goods company headquartered in Mumbai. It is also one of the top FMCG companies in India. The company serves the global beauty and wellness market of more than 25 countries. Its well-known brands are Parachute oil, Nihar Naturals, Saffola, Set Wet, Hair & Care, Livon etc. 

• Market Cap- ₹64,866 Cr
• LTP - ₹501.30

6. Hatsun Agro

Hatsun Agro Product Limited (HAP) is a dairy company headquartered in Tamil Nadu that offers full cream, standardised milk, ice cream, and other products. The company's brands include Arokya and Arun. 

• Market Cap- ₹25,282 Cr
• LTP - ₹1135

7. Nestle 

Nestle is a Swiss multinational company among the largest food and beverage companies in the world. Its subsidiary, Nestle India, is included in multiple indices like the Nifty 50, Nifty 500, S&P, BSE Sensex 50, etc. It is amongst the best FMCG companies in India, with a market capital of ₹250,594 Cr. Many Nestle brands, including Maggi, Nescafe, KitKat, Munch, Veg oats, sauces, A+, etc., are popular in India. 

‍

• Market Cap- ₹250,594 Cr
• LTP - ₹2599.10

8. Jyothy Labs

Jyothy Labs is another top FMCG company engaged in the manufacturing and marketing of fabric care, dishwash, mosquito repellent, personal care, and household insecticide products. The company's well-known products include Margo Soap, Maxo, Ujala, Exo dish wash bar, etc. 

• Market Cap- ₹15,770 Cr
• LTP - ₹429.45

9. LT Foods 

LT Foods is an Indian multinational FMCG company. The company offers daily-use products, such as rice, grains, etc., and ready-to-heat and eat products. Some of the popular brands of LT Foods are Royal—ready to heat, Daawat, Devaaya, Kari Kari, etc. 

• Market Cap- ₹5,931Cr
• LTP - ₹170.80

10. Parag Milk Foods 

Parag Milk Foods Limited is a dairy company that produces, supplies, and markets milk-based products such as curd, ghee, cheese, home milk, and flavoured milk. Well-known brands of Parag Milk Foods are Gowardhan, Go, Pride of Cows, and Topp UP. 

• Market Cap- ₹2,399 Cr
• LTP - ₹201

Top FMCG Companies in India 

Factors to Consider While Selecting FMCG Company to Buy Stocks 

‍

1. Market Position of the Company 

Considering the FMCG company's market position is the first step in shortlisting it for investment. When selecting FMCG companies to purchase stocks in India, look for the companies' brand value, customer base, distribution network, and popularity. 

2. Financial Growth of the Company 

Another crucial factor to consider while selecting a company is its financial growth in past years. Some metrics you can consider while measuring company performance are profit margin, return on equity, cash flows, and a 5-year growth rate.  

3. Advertisement Spend 

According to a news report in The Economic Times, FMCG companies invest 3 to 14% of sales in advertising to retain existing customers and build a new customer base. The expenditures vary according to gross margins. Advertising in FMCG is essential to growing a brand, creating a customer base, and retaining existing customers. A company investing in advertising is an excellent company to buy stocks in FMCG. 

4. Product Distribution Channel 

The supply channels of the FMCG company ensure the distribution of the products at the retail outlets. The company must have strong direct and indirect distribution channels. Companies relying primarily on direct product distribution channels will most likely perform well in difficult situations. 

5. Gross Margin 

Depending on the product category, branding, reliability, and availability, FMCG companies' gross margins range from 40% to 60%. Higher gross margins allow companies to enhance product distribution channels and spend on advertisements and branding. 

Apart from these, you can also look for other factors like operation margin, distribution expansion, market share gain, etc., before purchasing stocks in any FMCG company.  

‍

How to Buy Stocks in FMCG Companies?

‍

You can buy stocks in FMCG companies online through an online trading platform. Gopocket is one of the best platforms for buying stocks online in any sector. With it, you can start your investment at ₹0/—brokerage charge for the first 30 days. 

‍

Step 1: Download the Gopocket app or visit its website 

‍

‍

Gopocket is available on the ios app and Android apps. You can download the Gopocket app or use its web version to invest in it. 

‍

Step 2: Sign in and open the Demat Account 

‍

‍

Now, using your mobile number and email ID, sign in to GoPocket. You will receive an OTP for verification on both. Further, open your demat account using all the required documents, such as your PAN card, address proof, and bank proof. Note that an OTP for email verification can sometimes be found in the All Mail section. 

‍

Step 3: Explore funds of FMCG companies 

Once your demat account is started, you can check out different FMCG companies and their stock prices. You can also check the stocks of the above-mentioned top FMCG companies. 

‍

Step 4: Select the best FMCG stocks to buy 

Now, select the stocks by checking every important factor before investing. You can also consult experts while picking stocks. Moreover, you can use a brokerage calculator to estimate profit and loss. 

‍

Step 5: Buy Stocks 

After selecting the stock, you can proceed to buy it. However, before purchasing the stock, ensure that your bank has enough funds. 

Conclusion

FMCG investment is considered one of the best sectors to invest in. Its key benefits include diversifying fund options and steady return opportunities. However, selecting the best fund to invest in is essential for higher returns and avoiding market fluctuation. The best FMCG companies to invest in hold a good reputation, high profit margins, strong distribution channels, and a customer base.

You can choose any FMCG companies from the above list or as per your understanding to buy stocks online. Gopocket is one of the leading trading apps for purchasing equity and investing in IPOs, commodities, futures, and options. 

Want to purchase stocks in FMCG companies? Invest now with Gopocket! 

FAQs Related to Top FMCG Companies in India

1. Which FMCG stock is best?

Some of the leading FMCG stocks include: 

• Tata Consumer Products 
• ITC
• Godrej Consumer Products 
• Dabur India
• Marico
• Hatsun Agro
• Nestle
• Jyothy labs
• LT Foods
• Parag Milk Foods

2. What is the full form of FMCG and 5 FMCG companies?

FMCG stands for Fast Moving Consumer Goods. According to the market cap top 5 FMCG companies are: 

• Tata Consumer Products 
• ITC
• Godrej Consumer Products 
• Dabur India
• Marico 

Disclaimer: Gopocket doesn’t promote any of the FMCG companies to buy stocks. The blog is only for information purposes. Investors must examine their market understanding, risk-bearing appetite, and other crucial financial factors before making investment decisions.