ITC gets all the attention. But here are 5 FMCG stocks to watch out for…

Today every investor out there is talking about ITC, a leading Indian FMCG company.

ITC has always been in the headlines for its underperformance. People used to call it a meme stock. You often see funny pictures about ITC on social media.

But now ITC is in the news for its stellar results and a sharp rally.

After a decade of underperformance, ITC’s stock price has started to rise due to a number of factors.

As of this writing, the ITC share price is trading at its 52-week high. The recent rally can be attributed to excellent Q1 results.

While everyone is excited about ITC, there are many other FMCG stocks that have produced multibagger returns in 2022 and outperformed ITC.

Here’s a list of 5 best-performing FMCG stocks worth keeping on the watchlist…

No. 1 Vadilal Industries

First on our list is Vadilal Industries.

Vadilal Industries’ stock price is up 137% so far this year, making it a multibagger stock of 2022.

The company’s stock price is as sweet as its ice cream.

Vadilal Industries is a century-old company, founded in 1907.

With a market capitalization of over €$15B, it is a small-cap FMCG stock operating in the packaged food industry.

Vadilal is present in over 45 countries including North and South America, Europe, UK, Middle East, Southeast Asia and Australia.

Vadilal’s profit dropped by more than 150% €69m to €182 million in fiscal 2022.

Let’s take a look at the quarterly numbers to get a clear picture of the company’s recent performance.

There were some setbacks during the year, but the company managed to overcome them.

The company has definitely made its customers and investors smile.

Let’s take a look at the company’s stock price performance in 2022.

#2Sampre Nutrition

Second on our list is Sampre Nutrition.

This small-cap company has recovered 99% so far in 2022.

The company produces a wide range of confectionery including eclairs, candies, toffees, powders and center-filled products.

Besides producing its own brand, the company is instrumental in supplying increasing volumes for most multinationals.

At the beginning of the year, the share was listed at €33, and currently it is trading at €66

During a March 2022 board meeting, the Company approved a fundraising of €140 million through a rights issue of additional shares.

The company’s revenue has been steadily increasing, but it continues to report net losses. Zomato investors will feel deja vu as a similar story is unfolding with the tech stock.

Let’s take a look at the quarterly numbers to get a clear picture of the company’s recent performance.

This is how Sampre Nutrition has evolved in 2022.

#3 Sheetal Cool products

Third on our list is Sheetal Cool Products.

Sheetal Cool Products’ stock price is up more than 60% in 2022.

Sheetal Cool Products is India’s fastest growing company in the FMCG sector.

It has diversified products ranging from Namkeen to Ice Cream to Frozen.

Based in the small town of Amreli, Gujarat, the company has expanded its multi-distribution network in over 30 years.

The company is aiming for sales of €15 billion by 2030 and have impressions across the country and even overseas.

The company’s net income has doubled over the past year €107 m that stood €51 million years ago.

Let’s take a look at the company’s earnings results to get a better idea of ​​its performance.

Even in tough times, the company has consistently delivered solid results, suggesting it’s a fundamentally strong stock.

Let’s take a look at the company’s stock price performance in 2022.

#4 Super Baker

Fourth on our list is Super Bakers.

This Ahmedabad-based company is up more than 54% in 2022.

Super Bakers (India) is one of the largest producers of bread under the brand name “Super Bread”.

The share price was traded at €9 earlier this year. Today it is trading at about €14

Let’s take a look at the company’s stock price performance in 2022.

Super Bakers stock price performance in 2022

#5 Varun Drinks

Finally we have Varun drinks. Varun Beverages stock price is up more than 50% so far in 2022.

Varun Beverages is a large cap company in the Indian FMCG sector with a market capitalization of €604 billion

Varun Beverages is a major player in the beverage industry. It is one of the largest PepsiCo franchisees outside of the United States.

The Company manufactures and sells a wide range of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs).

The company operates 31 manufacturing facilities in India and six abroad, including two in Nepal and one each in Zimbabwe, Sri Lanka, Morocco and Zambia.

The Board recently approved an interim dividend of €2.50 per common share for fiscal year 2022.

In its most recent quarterly earnings, sales more than doubled €4.3 billion

Crazy numbers were reported by the company for the June quarter. EBITDA was reported 119% higher, while net income showed 152% year-over-year growth.

The company has steadily increased its revenue despite reporting net losses in the December quarter of 2021.

Let’s take a look at the company’s stock price performance in 2022.

investment take-away

The FMCG sector is a perennial favorite. It is related to India’s consumption theme.

They rely on FMCG products on a daily basis, whether it’s basic necessities like food and beverages or household and cleaning products like paper goods and cosmetics.

So the future seems bright for the FMCG companies in India.

However, note that FMCG is a sector that fluctuates the most with the smallest market disruption.

Investors should look for fundamentally strong stocks from the FMCG sector that have stable prospects for the future.

Have fun investing!

Disclaimer:This article is for informational purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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