Multibagger Update: These FMCG stocks gained up to 4126 per cent in five years; do you own any?

S&P BSE FMCG index gained over 11.41 per cent since the beginning of this year itself and has grown by 50.91 per cent in the past five years.

The fourth-largest sector of the Indian economy is fast-moving consumer goods (FMCG). India is probably going to be the fifth-largest FMCG market by 2025. From US$ 110 billion in 2020, the FMCG market in India is projected to grow at a CAGR of 14.9 per cent to US$ 220 billion by 2025.  

About 55 per cent of the revenue share is contributed by the urban segment while 45 per cent by the rural segment. Rural consumption growth will further fuel the FMCG market. Rural consumption of FMCG surged 58.2 per cent YoY in September 2021, which is two times as much as urban consumption (27.7 per cent). Despite widespread lockdowns, the Indian FMCG business grew by 16 per cent in CY21, a nine-year high. FMCG sales will increase as a result of favourable demographic trends and rising income levels.  

S&P BSE FMCG index gained over 11.41 per cent since the beginning of this year itself and has grown by 50.91 per cent in the past five years. It has been observed that the two years pandemic growth of BSE FMCG index was 35.7 per cent and it registered a growth of 29.41 per cent in the first year of the COVID-19 pandemic itself.  

Meanwhile, BSE Smallcap as well as BSE Midcap indices fell 10.19 per cent & 6.15 per cent on a YTD basis but gained 66.58 per cent & 54.56 per cent on a five-year basis.  

This shows that the FMCG index has a high growth potential even in times of crisis. The FMCG sector has been broadly categorised into three segments namely, food & beverages, healthcare, and household & personal care.  

As one can see, most of the multibagger belong to the food & beverages segment as India is still primarily an agrarian country.  

Patanjali Foods (formerly known as Ruchi Soya) is one of the largest manufacturers of edible oil in the country whereas GRM Overseas is a major rice milling company in the country. Both these Multi-baggers have topped the list of generating ample returns for their investors.  

Keep an eye on these multi-baggers in the upcoming trading sessions.  

Following are some of the top FMCG stocks that have outperformed the markets in the past demi-decade:  

Data as of July 22, 2022.