Fundamental Investment Analysis of FMCG Giants on the NSE: A Strategic Perspective

Abstract

The Fast-Moving Consumer Goods (FMCG) sector is such an important part of the Indian Economy that it offers very lucrative and stable investment alternatives with a non-cyclical demand with some strong financials. Here, in this research paper, we are providing a comparative fundamental analysis of FMCG companies listed on the National Stock Exchange, thereby analysing their financial soundness, profitability and market valuation. In-vestment Performance: ROE, ROI, EPS, P/E ratio and Dividend Payouts are key financial performance metrics where returns from investments are measured. While the analysis suggests that Hindustan Unilever, Nestlé India, and Britannia Industries have the best performance in terms of growth, ITC Ltd and Godrej Consumer Products continue to retain their leadership position, even if at a muted level. As per FMCG stocks research, it is considered a defensive asset class that is less affected during economic slowdown and provides stable long-term returns. However, inflation and supply chain challenges, and regulatory pressures are not without risks, hence require active stock selection and market management. The paper renders a useful and pertinent contribution for investors, analysts and policymakers interested in better understanding the financial behaviour and investment opportunities in India's FMCG sector.