FMCG Stocks Outpace Nifty with Robust Gains; Analysts See Momentum Continuing into 2025
FMCG stocks have emerged as a strong performer on Dalal Street, outshining the Nifty 50 with notable gains over the past month. Key players such as Godrej Consumer Products, ITC, Hindustan Unilever, and Tata Consumer Products have posted returns between 9% and 16%, outpacing the Nifty’s 6% climb. Buoyed by increased rural demand, pricing power, and improving operating margins, analysts remain upbeat on the sector’s prospects in the quarters ahead.
Godrej Consumer Products Ltd (GCPL) has led the pack with a 16% upswing in the past month. Analysts at Kotak Institutional Equities have upgraded their stance on GCPL to ‘add’ from ‘reduce’, setting a target of ₹1,200. They noted positive developments in both domestic and international markets, complemented by healthy volume growth expectations in the low-double digits for FY25.
ITC shares have also witnessed traction, registering gains of over 9% in the past month. The company’s stock benefited from recovery in its cigarettes and hotels businesses, along with stable FMCG growth. Brokerage firm Motilal Oswal maintains a ‘buy’ rating on ITC, citing strong fundamentals and an attractive valuation amid a benign input cost environment.
Tata Consumer Products has risen nearly 14% in one month, driven by consistent performance across its beverage and foods portfolio. Analysts highlight the company’s strategic focus on premiumisation, category expansion, and rural penetration as key growth levers. Jefferies has set a price target of ₹1,400, indicating further upside potential.
Hindustan Unilever Ltd (HUL), while gaining more modestly at around 2% in the last month, remains a sector bellwether. The company is expected to benefit from an uptick in rural consumption and recovering volumes. Citi has a ‘buy’ rating with a target price of ₹2,900, pointing to a stable growth outlook supported by operational efficiencies and innovation across categories.
With rural demand showing signs of recovery and input costs remaining largely under control, the FMCG sector is well-positioned for sustained performance into FY25. Market experts suggest that selective exposure to leading FMCG counters could offer stable returns amid