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Top profit-making companies in the FMCG space; do you own any?

28 September 20235 mins read by Angel One
Varun Beverages and SKM Egg Products emerged as the top performers on the list by achieving a net profit growth of over 50% CAGR in the last ten years.
Top profit-making companies in the FMCG space; do you own any?
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If you are running a business, you would probably understand the significance of the top line and bottom line of any business. The top line refers to the company’s revenue, and the bottom line represents the profit generated by the company. Even investors are always curious to know these figures before considering any company for investment.

Every business owner wants their company’s profitability to outperform its competitors. To achieve this, they need to either increase their top line, which is revenue or control their expenses directly or indirectly related to their business operations.

The Fast-Moving Consumer Goods (FMCG) sector in India plays a significant role in the economy. FMCG products are those that are consumed frequently, usually on a daily or regular basis. These products include items such as food and beverages, personal care products, household cleaning products, and other consumables.

In this article, we are going to analyse FMCG (Fast-Moving Consumer Goods) companies. We will explore companies that have registered impressive growth in their sales and net profit over the last ten years.

For better understanding, we have categorized the companies within the same industry based on their market capitalization.

Following are the companies having a market capitalisation of above Rs 50,000 crore:

Company Name CMP Rs M Cap Rs in Cr Sales Q1 FY4 Rs in Cr Net Profit Q1 FY24 in Rs in Cr 10-Year Profit Growth % 10-Year Sales Growth %
Varun Beverages 934.10 1,21,350.45 5,611.00 1,005.42 51.09 22.02
Britannia Industries 4,524.95 1,08,991.71 4,011.00 455.45 23.62 10.18
Marico 587.10 75,940.49 2,477.00 436.00 13.23 7.83
P & G Hygiene 16,730.00 54,306.80 853.00 151.24 12.58 8.86
Hindustan Unilever 2,506.70 5,88,972.03 15,496.00 2,556.00 12.14 8.42

Following are the companies having a market capitalisation of below Rs 50,000 crore:

Company Name CMP Rs M Cap Rs in Cr Sales Q1 FY4 Rs in Cr Net Profit Q1 FY24 in Rs in Cr 10-Year Profit Growth % 10-Year Sales Growth %
SKM Egg Products 504.90 1,329.41 210.00 35.30 54.33 11.89
Vadilal Industries 2,653.45 1,907.85 411.00 71.01 34.81 12.57
GRM Overseas 226.50 1,359.00 297.00 15.68 34.42 16.66
Jyothy Labs 360.95 13,254.43 687.00 96.25 29.69 8.43
Chamanlal Setia 217.75 1,126.52 263.00 27.47 25.66 17.68
L T Foods 176.95 6,144.61 1,778.00 137.44 21.96 12.14
ADF Foods 1,137.80 2,500.08 112.00 14.73 21.02 9.67
KRBL 459.15 10,807.93 1,414.00 194.65 18.87 10.09
Tasty Bite 16,847.90 4,323.16 154.00 21.37 16.81 15.61
Gillette India 5,920.65 19,295.39 619.00 91.75 15.02 5.69

There is always pricing pressure on FMCG companies due to identical products being sold by these companies. For example, bathing soap is manufactured and sold by almost every company at almost the same rate. In this scenario, it becomes tough to maintain customers and boost both revenue and profitability.

Investors can consider adding FMCG stocks to their portfolio for better diversification, as we observed that even during the COVID-19 pandemic when the entire world was confined to their homes, FMCG products continued to be consumed without interruption.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

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