GQG Partners Boosts Exposure to Top-Tier FMCG Stocks in Q4
Global investment powerhouse GQG Partners has increased its holdings in several financially robust FMCG companies during Q4 FY24, signaling strong institutional confidence in India’s consumer sector. With high return ratios, consistent cash flows, and low debt levels, these companies stand out as attractive long-term bets in a resilient consumption market.
Colgate-Palmolive (India) Ltd
Colgate-Palmolive has emerged as a favorite, with GQG Partners raising its stake from 1.23% in Q3 to 2.27% in Q4 FY24. The oral care leader reported a 20% year-on-year rise in net profit to ₹340 crore in Q4, driven by premium product growth and improved rural demand. Operating profit margins also rose 80 basis points to 29.9%. Impressively, the stock has gained 53% over the past 12 months.
Dabur India Ltd
Dabur saw GQG increase its stake to 1.34% in Q4, from below 1% in the prior quarter. Despite inflationary pressures, Dabur remains diversified across categories like oral care, health supplements, and home care. The company posted a 16.5% year-on-year increase in net profit at ₹341 crore in Q4 FY24, while its operating margin improved by 100 basis points.
ITC Ltd
GQG marginally lifted its holding in ITC to 2.03%. ITC posted a 1.3% uptick in consolidated net profit to ₹5,020 crore in Q4, with FMCG revenues growing nearly 7% year-on-year, offsetting slower growth in cigarettes and agri-business segments. Despite regulatory overhangs in its hotel and tobacco arms, ITC has delivered steady shareholder returns and enjoys a healthy cash position.
Nestlé India Ltd
Already holding a 1% stake, GQG retained its position in Nestlé India through Q4. The company’s Q4 net profit jumped nearly 27% year-on-year to ₹934 crore, driven by volume-led growth across categories such as noodles, coffee, and chocolates. Despite premium