Anand Rathi names Marico, GCPL, Asian Paints, Mrs Bector Food as top FMCG buys
Anand Rathi Research has upgraded Marico, Godrej Consumer Products Ltd (GCPL), Asian Paints and Mrs Bector Food to a buy rating, citing a projected 10% revenue CAGR and 15% earnings CAGR for the FMCG sector over FY26‑28. The firm assigns a 25% upside to each pick, with target prices of ₹1,100 for Marico, ₹1,750 for GCPL, ₹4,375 for Asian Paints and ₹250 for Mrs Bector Food.
Market Background
The Indian equity market has been buoyant amid a surge in AI‑driven trading and inflows into Jio’s IPO, with the Nifty 50 hovering around 19,800. The consumer discretionary index, which includes FMCG stocks, has gained 7% in the last quarter, driven by premiumisation and GST rate cuts. RBI’s policy rate remains at 6.50%, supporting credit growth for consumer firms.
Key Developments
| Metric | Value | Signal |
|---|---|---|
| FY26 revenue CAGR (FMCG) | 10% | Bullish |
| FY26 earnings CAGR (FMCG) | 15% | Bullish |
| Target price upside | 25% | Bullish |
| Marico target price | ₹1,100 | Bullish |
| GCPL target price | ₹1,750 | Bullish |
| Asian Paints target price | ₹4,375 | Bullish |
| Mrs Bector Food target price | ₹250 | Bullish |
Anand Rathi’s analysis points to margin expansion from lower crude oil prices and a shift towards premium products. Marico’s Q4FY26 revenue grew 9% YoY, slightly below the 10% street estimate, but its EBITDA margin of 12.7% is close to the 12.9% estimate. GCPL’s diversified portfolio and strong distribution network give it an edge over peers. Asian Paints benefits from a 4% price‑led growth in its core business. Mrs Bector Food’s modest upside stems from its strong brand equity and potential for price hikes.
Sector Impact
The four stocks are representative of the broader FMCG sector’s resilience. Investors can use them as a proxy for the consumer discretionary index, which is expected to rise as discretionary spending picks up. The buy ratings may lift sector sentiment, supporting the Nifty FMCG index.
Macro & Regulatory Context
RBI’s decision to keep the repo rate unchanged at 6.50% supports credit expansion for FMCG companies. SEBI’s recent guidelines on ESG disclosures will increase transparency but also add compliance costs. Global factors such as lower crude oil prices are expected to improve margins for paint and textile producers.
What to Watch
- Marico FY27 Q1 earnings – 30 November 2026
- GCPL FY27 Q1 earnings – 15 December 2026
- Asian Paints FY27 Q1 earnings – 10 December 2026
- Mrs Bector Food FY27 Q1 earnings – 25 November 2026
- RBI policy meeting – 15 January 2027
Disclaimer: This article is for information only and is not investment advice. Markets involve risk; consult a SEBI‑registered adviser before acting.
