Stocks to Buy: Hul, Godrej Consumer to Emami – Anand Rathi’s Top FMCG Stock Picks after Q4 Results 2025

India’s Fast-Moving Consumer Goods (FMCG) Sector is Showing Early Signs of Recovery, with Rural Markets Continuing to Lead the Demand Resurgarance, According to A Recent Report by Brokerage Firm Anand Rathi. While Value Growth in the Quarter Ended March 2025 Remained Steady at 10.7% Year-On-Year (Yoy), Up Slightly from 10.6% in the Previous Quarter, Volume Growth Moderateed to 5.1% from 7.1%.

Rural India Once Again Outpermed Urban Markets for the Fourth Consecuve Quarter, with Volume Growth of 8.4% Yoy – Nearly Four Times the 2.6% Growan In Urban Markets, Acord Brokerage report.

However, unseasonal rains in april and may be weigh on demand for summer-class products such as such as soft drinks, ice creams, prickly heat talcs, and skincare items. Some manufacturers unar-term drag, but the brokerage maintains a positive outlook for the rest of26.

“A Normal Monsoon Cold Further Support Rural Demand Recovery, which most FMCG Managements are Optimistic About,” The report noted.

INPUT COST PRESSURERES Have Recently Started to Ease, Offering Potential Relief to FMCG Companies’ Margins. Anand Rathi Expects Commodity Price Moderation, Along with Selling Price Hikes Taken in H2Fy25 and Early Q1fy26, to Drive Proftibitory of FMCG Companies Going Forward.

“We Estimate A 100-Bis-Point Improvement in Ebitda Margins Between FY25 and FY27, as input cost pressures ease and operateal efficions kick in,” The report stated.

FMCG Stocks Valuations

Valuations Across the FMCG sector has no normalized to their historical average, the brokerage observed. Going forward, stock returns are expected to be more closely aligned with earnings growth. For the Companies Under Coverage – Including Some Consumer Discretionary Names – Anand Rathi Estimates a ~ 9% Revenue Cagr and ~ 14% Earnings Cagr Over FY25-27. This compares with a modest 4% Revenue Growth and Flat Earnings Performance in FY25.

Stocks to buy

Anand Rathi’s Preferred Stock Picks in the FMCG Space Include Hindustan Unilever (Hul), Godrej Consumer Products, Emami, Zydus Wellness, and Mrs. Bector Food Specialies.

Hindustan Unilever (HUL) Buy | Target price: 2,840

Godrej Consumer Products Buy | Target price: 1,430

Emami Buy | Target price: 840

Zydus wellness Buy | Target price: 2,570

MRS. Bector Food Specialies Buy | Target price: 1,875

In the consumer discretionary space, united brewers stands out as the preferred stock pick, with a target price of 2,610.

Disclaimer: The views and recommendations made about individual analysts or broking companies, and not of Mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.