Everyone’s attention is going on ITC. But here are 5 FMCG stocks to keep an eye on…

These days, every investor is talking about ITCwho is a top Indian FMCG Company,

ITC has always been a part of the headlines due to its poor performance. People used to call it mime stock. Often you must have seen funny pictures about ITC on social media.

But now, ITC is in the news for its excellent results and fast rally.

After a decade of poor performance, ITC share price has started rising due to several factors.

As I write this, ITC share price is trading at its 52-week high. The recent rally is due to outstanding Q1 results.

While everyone is bullish on ITC, many other FMCG stocks have given multibagger returns in 2022 and outperformed ITC.

Here is a list of 5 top performing FMCG stocks, which are worth a look…

#1 Vadilal Industries

First on our list is Vadilal Industries.

The share price of Vadilal Industries has risen 137% so far this year, making it the Multibagger Stock of 2022.

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

Vadilal Industries is a century old business which was established in 1907.

with a market capitalization of more 15 billion, it is a small-cap FMCG stock engaged in the packaged food industry.

Vadilal is present in more than 45 countries, including North and South America, Europe, the United Kingdom, the Middle East, Southeast Asia and Australia.

Vadilal’s profits jump more than 150% 69 m to 182 m in the financial year 2022.

Let’s take a look at its quarterly figures for a clearer picture of the company’s recent performance.

Vadilal Industries – Quarterly Performance

	March-22	December-21	September-21	June-21	March-21
revenue ( M)	1,751.4	909.2	1,466.4	1,314.2	1,407.8
Growth in Revenue (%)	92.6	-38.0	11.6	-6.6
Net Profit( M)	182.8	-110.3	8.2	22.7	69.1
profit growth	265.7	-1,440.7	-63.8	-67.1
npm%	10.44	nautical miles away	0.56	1.73	4.91

Source: Equitymaster

A few setbacks were experienced throughout the year, but the company has managed to overcome them.

The company has certainly made its customers and investors happy.

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

#2 Compression Nutrition

Second on our list is Sampre Nutrition.

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

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

Apart from building its own brand, the company is instrumental in providing growing volume for most of the MNCs.

At the beginning of the year, the share price traded at 33, and it currently trades at 66.

During the board meeting in March 2022, the company approved the raising of funds of 140m through rights issue of additional shares.

The company’s revenue continues to grow, but it continues to report a net loss. Zomato investors will feel the spirit of Deja Vu as a similar story is happening with tech stocks.

Let’s take a look at its quarterly figures for a clearer picture of the company’s recent performance.

Samore Nutrition – Quarterly Performance

	March-22	December-21	September-21	June-21	March-21
revenue ( M)	71.3	71.5	61.8	26.7	48.0
Growth in Revenue (%)	-0.3	15.8	131.1	-44.3
Net Profit( M)	-1.7	2.2	12.8	-10.2	-0.5
profit growth	-177.4	-83.0	-225.4	2,066.0
npm%	nautical miles away	11.9	11.6	nautical miles away	9.0

Source: Equitymaster

Here’s how Sampre Nutrition fared in 2022.

#3 Soft Cool Products

Third on our list is Soft Cool products.

The share price of Sheetal Cool Products has jumped over 60% in 2022.

cool cool product India’s fastest growing company in FMCG sector

It has a diverse range of products from snacks to ice cream and frozen products.

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

The company envisions the business 15 billion by 2030 and have raids across the country and even abroad.

The company’s net profit doubled last year 107m Joe stood on 51 MA years ago.

For a better picture of the performance, let’s take a look at the company’s quarterly numbers.

Soft Cool Products – Quarterly Performance

	March-22	December-21	September-21	June-21	March-21
revenue ( M)	1,738.5	1,529.2	1,429.8	889.1	1,178.1
Growth in Revenue (%)	13.7	7.0	60.8	-24.5
Net Profit( M)	107.3	77.0	33.2	27.7	51.5
profit growth	39.2	131.8	19.8	-46.1
npm%	6.2	5.0	2.3	3.1	4.4

Source: Equitymaster

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

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

#4 Super Bakers

Fourth on our list is Super Bakers.

This Ahmedabad-based company has grown by over 54% in 2022.

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

Its share price. traded on Earlier this year 9. Today it trades at approx. 14.

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

Super Bakers Share Price Performance in 2022

#5 Varun Beverages

Lastly, we have Varun Beverages. The share price of Varun Beverages has risen more than 50% so far in 2022.

Varun Beverages is a large-cap company in the FMCG sector of India with a market capitalization of Rs. 604 billion

Varun Beverages is a leading partner in the beverage industry. It is one of the largest PepsiCo franchises outside the United States.

The company produces and sells a wide range of Carbonated Soft Drinks (CSD) and Non-Carbonated Beverages (NCB).

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

The board has recently approved interim dividend of 2.50 per equity share for the financial year 2022.

In its latest quarterly results, its revenue more than doubled 4.3 billion

Varun Beverages – Quarterly Performance

	June-22	March-22	December-21	September-21	June-21
revenue ( M)	43,658.3	21,843.7	11,07.1	17,105.6	19,853.2
Growth in Revenue (%)	99.9	98.5	-35.7	-13.8
Net Profit( M)	7,283.3	1,953.6	-197.5	1,459.2	2,380.8
profit growth	272.8	1,089.1	113.5	-38.7
npm%	16.7	8.9	nautical miles away	8.5	12.0

Source: Equitymaster

Crazy numbers were reported by the company for the June quarter. EBITDA was reported higher by 119% while net profit showed a 152% YoY growth.

The company continues to grow revenue even though it posted a net loss in the December 2021 quarter.

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

investment takeaway

The FMCG sector is an evergreen sector. It is related to the topic of consumption in India.

You rely on FMCG products every day, be it daily essentials like food and beverages, or household and home care products like paper goods and cosmetics.

In such a situation, the future of FMCG companies in India seems to be bright.

However, note that FMCG is the sector that tends to fluctuate the most with the smallest disruption in the market.

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

Happy Investing!

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

This article is syndicated from equitymaster.com

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