Dividend Upto Rs 72/Share: 5 FMCG Stocks To Buy, Accumulate After Q4 Results: Top Analysts

Leading analysts have recommended buy and accumulate calls to 5 leading FMCG sector stocks as the companies have already declared their quarterly results. These stocks are Nestle India, Dabur India, Hindustan Unilever (HUL), Adani Wilmar, and Britannia Industries. Britannia Industries declared the maximum dividend at Rs 72/share. More details below:

1. Buy Nestle India Share: Last trading price of Nestle India share on BSE is Rs 2455.60 per share with intraday fall of 2.22%. The 52-week high price of Nestle India share on BSE is Rs 2770.75 per share (as on 02/01/2024) and 52-week low price is Rs 2048.56 per share (as on 26/04/2023). Life Insurance Corporation of India (LIC) has 1.84% stake in Nestle India with 1,778,769 shares of the company. Nestle India share offered return of soared 133% in last 5-years and 12% in last 1-year. The Board of Directors of Nestle India Ltd recommended a final dividend of Rs 8.50/share of Re 1/- each.

FMCG giant Nestle India Ltd on Thursday declared a jump of 27% year-on-year (YoY) in its net profit to Rs 934 crore for the quarter ended March 31, 2024 as against the net profit of Rs 737 crore declared in the corresponding quarter of last year. The company declared its revenue from operations for the quarter ended March 31, 2024 at Rs 5,268 crore, up 9% as against Rs 4830 crore declared in the year ago period.
Kotak Institutional Equities said "Nestle India's revenue/EBITDA growth of 9%/21% in the march quarter was slightly ahead of our estimates. The overall operating performance was decent in the context of weak consumption and the steep inflation seen in coffee prices. Nestle has launched two new businesses: Nutraceuticals JV with Dr Reddy's and Nespresso's entry into India. These forays hold LT promise but are unlikely to move the needle in the foreseeable future."

The brokerage firm has recommended buy call with a target price of Rs 2,550 apiece.

2. Accumulate Dabur India Share: Last trading price of Dabur India Ltd share on BSE is Rs 531.25 per share with intraday gain of 1.33%. The 52-week high price of Dabur India share is Rs 596. 90 per share (as on 06/07/2023) and 52-week low price is Rs 489.00 (as on 16/04/2024), respectively. Dabur India share offered return of over 5% in last 2-weeks, fell a little over 1% in last 1-year and over 1% in last 3-years. Dabur India recommended final dividend of Rs 2.75 per share of the face value of Re 1/- each for FY 2023-24.

Large cap FMCG major, Dabur India Ltd today declared its full year 2023-24 consolidated revenue crossed the Rs 12,000 mark to end the year at Rs 1204 crore. It marks a 7.6% rise over the previous year's Rs 11,530 crore. The full year consolidated revenue growth stood at 10.1% on a constant currency basis. Meanwhile, consolidated net profit for 2023-24 reported a jump of 7.9% to Rs 1843 crore as against Rs 1707 crore an year ago. Dabur quarterly net profit surged 16.2% to Rs 350 Crore, up from Rs 301 crore a year earlier.

Amnish Aggarwal, Director - Research, Institutional Equities , Prabhudas Lilladher Pvt. Ltd has recommended accumulate call to Dabur India share with target price of Rs 563 per share. Dabur has given cautiously optimistic outlook for FY25 led by 1) 8% growth in rural sales (~50% of domestic sales) 2) strong performance across oral care, Home care with market share gain across categories and 3) innovations and distribution led gains.

3: Buy Hindustan Unilever Share: Last trading price of Hindustan Unilever share on BSE is Rs 2215.50 apiece. The 52-week high price of HUL Share on BSE is Rs 2768.50 (as on 07/07/2023) and 52-week low price is Rs 2170.25 (as on 16/04/2024). HUL also recommended dividend of Rs 24/share. HUL shares fell 10% in last 3-months and declined 11% in last 1-year.

Hindustan Unilever Ltd declared a 6% decline in its standalone net profit to Rs 2406 crore for the 4th quarter ended March 31, 2024 as compared to Rs 2552 crore reported in the year ago period. The FMCG giant witnessed marginal rise in its revenue from operations to Rs 14,693 crore for the Q4 ended March 31 as against Rs 14,638 crore reported in the corresponding period of last year. Revenue in beauty and personal care declined 2.7%.

Motilal Oswal feels HUL's volume growth bottomed out and feels a gradual volume recovery in FY25. HUL's wide product basket and presence across price segments should help the company accomplish a stable growth recovery. Taking into consideration the favorable risk-reward, Motilal Oswal has recommended buy call to HUL share with a target price of Rs 2,900 per share, based on 55x FY26E EPS. Also, JM Financial issued buy call to HUL shares and slashed the target price to Rs 2,640 per share from Rs 2,970 earlier.

4. Buy Britannia Industries Share: Last trading price of Britannia Industries share on BSE is Rs 4745.15 per share with intraday fall of 0.32%. The 52-week high price of Britannia Industries share on BSE is Rs 5386.25 per share (as on 29/12/2023) and 52-week low price is Rs 4349.95 per share (as on 1/11/2023), respectively. Britannia Industries shares fell 8% in last 3-months, surged over 4% in last 6-months, gained 5% in last 1-year, and offered return of 76% in last 5-years.

The Board of Directors of Britannia Industries recommended a final dividend of 73.5 per equity share of Re 1 each.

Britannia Industries on May 3 declared a decline of 3.6% year-on-year (YoY) in its consolidated net profit for the quarter ended March 31, 2024 to Rs 538.28 crore as against Rs 558.66 crore announced in the corresponding period of last year. Last trading price of Britannia Industries share on BSE is Rs 4745.15 per share with intraday fall of 0.32%. Britannia's Consolidated Sales for the Quarter ended 31st March 2024 stands at Rs 4,014 Crores, growing 3.1% over last year and Operating Profit stands at Rs 708 Crs (17.6% of Sales). For the year ended 31st March 2024, Consolidated Revenue stands at Rs 16,546 Crores growing 3.5% over previous year and Operating profit stands at Rs 2,869 Crores growing 10.1% (17.3% of Sales).

IIFL suggested traders to buy Britannia shares with the target price of Rs 4,922- Rs 5040 apiece and maintain stop loss at Rs 4,672 apiece.

5. Buy Adani Wilmar Share: Last trading price of Adani Wilmar Ltd share on BSE is Rs 344.30 per share with intraday fall of 2.05%. The 52-week high price of Adani Wilmar share on BSE is Rs 509.40 apiece (as on 24/05/2023) and 52-week low price is Rs 285.85 per share (as on 20/11/2023), respectively. Adani Wilmar share declined 6% ytd, surged 8% in last 6-months and fell 13% in last 1-year.

The Adani Group company declared a 67% year-on-year (YoY) rise in its net profit for the Q4 ended March 31, 2024 to Rs 157 crore from Rs 94 crore reported in the corresponding quarter of last year. Nuvama has issued buy call with a 12-month target price of Rs 480 on Adani Wilmar.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal, Nuvama, IIFL, Kotak Institutional Equities, JM Financial, and Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.