Three FMCG stocks to buy: Raja Venkatraman recommends these stocks for today, 21 April
Summary
- Here are three stocks to buy in the FMCG sector, as recommended by Raja Venkatraman of NeoTrader, for Monday, 21 April
India's FMCG sector is poised for sustained growth, supported by progressive government policies and changing consumer patterns. The Budget provided a significant push with tax exemptions for incomes up to ₹12 lakh, enabling greater disposable income and spurring consumption. Additionally, rural-centric measures, such as enhanced agricultural investments, will likely boost demand in non-urban markets. The RBI's repo rate cut further supports growth through lower borrowing costs and improved liquidity, fostering demand and operational efficiencies for FMCG players.
Top three FMCG stocks to buy today, recommended by Raja Venkatraman:
TATACONSUM
Look to go long above ₹1,125 and on any dips towards 1080 with stop below ₹1,040 for an upside towards ₹1,280 to ₹1,350 in next 3 months.
GODFRYPHLP
With steady upward drive seen in the last few weeks one can consider going long above ₹7,650 and on any dips towards ₹7,200 with stop below ₹7,100 for an upside towards ₹8,500 to ₹8,800 in next 3 months.
UBL
Go long at current levels and can also look to add at ₹2080 with a stop below ₹2060 for an upside towards ₹2300 -2350 in next 3 months.
Sector Dynamics and Consolidation
Companies are focusing on consolidation, premiumization, and product diversification to cater to evolving consumer preferences.
Enhanced credit guarantees for MSMEs aid in streamlining supply chains for greater efficiency.
Demand Recovery and Growth Drivers
Rural Revival: Budget allocations for rural infrastructure amplify purchasing power and boost consumption.
Urban Growth: Increasing adoption of premium and health-focused products fuels urban demand.
Cost Savings and Price Stabilization
Firms are adopting cost-saving measures, including streamlined operations and optimized logistics, to combat rising input costs.
Companies are aligning pricing strategies with affordability, ensuring balanced margins.
Challenges: Demand Revival, Pricing Trends, and Growth Prospects
Uneven recovery across urban and rural markets continues to challenge demand revival.
Competitive pricing pressures and raw material inflation pose hurdles to pricing strategies.
Sustaining growth in a volatile macroeconomic environment requires proactive innovation and adaptability.
Also Read: Rural India's reality check: Consumers turn cautious as aspiration meets inflation
We can consider these stocks for this week:
Tata Consumer Products (TATACONSUM)
The company delivered a 17% growth in consolidated revenue for Q3 FY25, with India foods revenue growing by 31%. The company has launched innovative products like Tata Tea Premium Care and Tata Gluco+ Jelly Lychee flavor, catering to health-conscious and younger consumers. Its focus on premiumization and health and wellness trends has been pivotal in driving growth. Future plans include expanding its rural distribution network and scaling up its e-commerce presence. Tata Consumer is also emphasizing sustainability and digital transformation to enhance operational efficiency and meet evolving consumer demands.
After forming a double top in 2024, the prices declined swiftly in the latter part of the year, till it reached some strong valuation support around the 900 zone. The revival seen in the last few months of 2025 was spent trying to hold on to these levels coupled with some genuine buying at lower levels has once again triggered some upside. The rounding formation in the last two months has given the confidence of some potential buying opportunity. The long body candle formation and an uptick in momentum in the sector as a whole can be looked upon as an indication to go long. With the recent price move holding above the Moving Average Bands and also thrusting above the gap resistance zone around 1100 it augurs well for the prices.
Despite challenges such as inflationary pressures and competitive market dynamics, Tata Consumer is well-positioned to capitalize on demand recovery and growth opportunities. Its strategic focus on innovation, premiumization, and sustainability ensures a strong foundation for long-term success.
Look to go long above ₹1125 and on any dips towards ₹ ₹1080 with stop below ₹1040 for an upside towards ₹1280 to ₹1350 in the next 3 months.
Godfrey Phillips India (GODFRYPHLP)
The company recorded a 49% increase in net profit, reaching ₹315.9 crore for Q3 FY25, with revenue rising by 27% to ₹1,591.3 crore. The company has seen significant growth in cigarette volumes and unmanufactured tobacco exports. Innovations in product offerings and strategic partnerships, such as its collaboration with Philip Morris International for Marlboro distribution, have strengthened its market position. Godfrey Phillips' future plans include expanding its international business and focusing on sustainability initiatives. The company aims to capitalize on demand recovery and growth opportunities while addressing challenges like pricing pressures and raw material costs.
The company topped out quite early and the fall was severe as the prices went down south by nearly 50% from the highs, triggering major portfolio exits. The tobacco industry is subject to stringent regulations, which played a role in Godfrey Phillips's operations and growth prospects. Some strategic partnerships that were formed in 2025 and a bonus announcement have once again brought back some newfound momentum. The decline seen in the last few months was right near the Ichimoku bands. The lows around this was also incidentally to the point from where the previous upmove began.
The company is committed to improving productivity and operational efficiency, supported by investments in research and development. Additionally, GODFRYPHLP plans to leverage favorable policy measures and evolving consumer preferences to drive growth in both domestic and international markets.
With steady upward drive seen in the last few weeks one can consider going long above ₹7650 and on any dips towards rs 7200 with stop below ₹7100 for an upside towards ₹8500 to ₹8800 in next 3 months.
United Breweries Ltd (UBL)
UBL reported a 7% growth in gross profit for Q3 FY25, with net sales reaching ₹1,998 crore. Premium volumes surged by 33%, driven by the success of innovations like Heineken Silver and Heineken Draught. The company has been focusing on premiumization and expanding its market share in key regions, including North India, where volumes grew by 16%. UBL's future plans include further investments in premium product lines and enhancing supply chain capabilities, with ₹134 crore allocated for capex in the first nine months of FY25.
The last few weeks have been quite volatile for this counter but the progress seems to be steady. The prices post reacting into the moving average bands have shown fair enthusiasm to head higher. The last two weeks in particular have been marked by some strong upward drive post some consolidation at the bands in March 2025.
The revival of the positive directional index (blue line lower panel) is a hint that the bullish vibes could pick up once again. A modified Pitchfork used on the charts indicate that the prices have firmly closed above the median line and has potential to head higher. With possibility of more upward traction in store one can look for the higher levels around 2300 at the minimum.
Looking ahead, UBL's future plans include expanding its premium product portfolio and strengthening its presence in high-growth regions. The company is optimistic about leveraging favourable demographics, rising disposable incomes, and urbanisation trends to sustain long-term growth.
Go long at current levels and can also look to add at ₹2080 with a stop below ₹2060 for an upside towards ₹2300 -2350 in next 3 months.
With significant opportunities presented by policy support and evolving market conditions, the FMCG sector appears well-positioned for long-term expansion. Companies need to harness these enablers while addressing market challenges to realize their full potential.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
