The Fast Moving Consumer Goods (FMCG) sector has seen a significant decline in its image, leading to a sharp fall in stocks. Over the past three months, FMCG stocks have plummeted by up to 21%. The sector’s defensive image, which was once a major attraction for investors, has taken a hit due to various factors such as slowing consumption growth, increasing competition, and changing consumer preferences.
Despite this, some FMCG companies are still considered top bets by analysts. Tata Consumer Products and Marico are among the top 10 bets in the sector. Tata Consumer Products, which is a leading player in the packaged food and beverages space, has been gaining traction due to its strong brand portfolio and increasing focus on e-commerce.
Marico, on the other hand, has been benefiting from its strong presence in the personal care space and its ability to innovate and adapt to changing consumer preferences. Other FMCG companies, such as Hindustan Unilever and Nestle, are also expected to perform well in the long term, despite the current challenges facing the sector.