GQG Partners Ups Stake in Financially Resilient FMCG Stocks During Q4
Global investment firm GQG Partners continues to sharpen its focus on India’s FMCG sector, increasing holdings in a raft of financially robust companies during Q4 FY24. As consumer demand stabilizes and rural recovery gains traction, these select FMCG stocks are drawing renewed investor attention for their strong balance sheets and consistent cash flows.
Leading the pack is ITC Ltd, where GQG increased its stake from 2.86% to 2.98%. With a market cap exceeding ₹5.5 lakh crore and a debt-to-equity ratio of just 0.04, ITC’s diversified portfolio—spanning cigarettes, packaged foods, and personal care—positions it as a resilient play in both urban and rural markets. The company recently reported a net profit of ₹5,190 crore for Q4 FY24, reflecting solid operational efficiency despite macroeconomic headwinds.
Next is Hindustan Unilever Ltd (HUL), where GQG maintained its 1.44% stake. A staple in consumer portfolios, HUL boasts outstanding profitability with a return on equity of over 30% and negligible debt. While the company witnessed slower volume growth due to inflationary pressures, its broad product mix across home care, beauty, and personal care continues to ensure steady cash generation.
Varun Beverages Ltd, one of PepsiCo’s largest bottling partners, also saw a boost, with GQG increasing its stake to 1.35%. The company’s Q4 profit surged 25% YoY, underpinned by strong demand for carbonated beverages and new capacity expansion. Its debt-to-equity ratio stood at 0.43 with a healthy interest coverage ratio of 9.08, underscoring prudent capital management.
GQG also raised its holding in Emami Ltd from 1.04% to 1.16%. Known for household brands like BoroPlus and Navratna, Emami has been targeting rural penetration and digital channels to drive growth. Despite its small-cap status, Emami’s promoters hold an 53.86% stake, signaling confidence in long-term performance.
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