In a year marked by rural recovery and easing inflation, the Nifty FMCG index outshone, climbing 25%. Varun Beverages led with an 87% surge, while Radico Khaitan and Colgate-Palmolive soared 58% and 56%. Only Dabur saw a 5.5% dip.
The sector's robust growth stems from structural trends like under-penetration and premiumization. Despite muted festive season performance, improving margins due to stable raw material prices signal earnings growth.
FMCG remains a solid bet with its strong returns ratios and dividends yield in the ever-changing market landscape