Axis Securities in its latest note pointed out that Q1 marked another quarter of improving consumption momentum, with most FMCG companies delivering high-single to double-digit topline growth. Rural and urban demand remained resilient, supported by improving consumer sentiment, premiumisation, deeper distribution and the recent GST rate cuts. The brokerage noted that Q1 marked the second consecutive quarter of sequential improvement in demand, although erratic monsoons affected select summer-centric categories.
What lies ahead for FMCG stocks?
“We remain constructive on the medium-to-long-term outlook for the FMCG sector, supported by improving consumer purchasing power, low category penetration, increasing rural distribution and continued premiumisation,” Axis Securities said, adding that the shift towards branded and higher-value products should support both revenue growth and margin expansion over the longer term. “Near-term consumption is also expected to improve further, supported by government spending, tax benefits and GST 2.0 reforms. While input-cost inflation could limit near-term margin expansion, calibrated price increases, cost optimisation and increasing penetration of quick-commerce should support earnings recovery,” it said. Here are 4 of its top FMCG picks
Nestle India (Buy | Target price: Rs 1,765)
Axis Securities has a ‘Buy’ call on the shares of Nestle India, with a target price of Rs 1,765 apiece. This implies an upside potential of around 20.5% from the stock’s previous closing price of Rs 1,465 apiece on NSE. The shares of the company have fallen around 3% in a week but gained 3% in a month, 13% in 2026 so far and 26% in one year. In the longer term, Nestle India shares have delivered 34% returns over three years and 55% over five years.
Asian Paints (Buy | Target price: Rs 3,270)
Axis Securities has a ‘Buy’ call on the shares of Asian Paints, with a target price of Rs 3,270 apiece. This implies an upside potential of more than 24% from the stock’s previous closing price of Rs 2,630.8 apiece on NSE. The shares of the company have fallen around 4% in a week, more than 2% in a month and over 4% in 2026 so far. In the longer term, Asian Paints shares have delivered negative returns of 17% over three years and 12% over five years.
Britannia Industries (Buy | Target price: Rs 6,590)
Axis Securities has a ‘Buy’ call on the shares of Britannia Industries, with a target price of Rs 6,590 apiece. This implies an upside potential of nearly 21% from the stock’s previous closing price of Rs 5,453 apiece on NSE. The shares of the company have fallen around 3% in a week, and over 9% in 2026 so far. In the longer term, Britannia Industries shares have gained 20% over three years and 47% over five years.
CCL Products (Buy | Target price: Rs 1,425)
Axis Securities has a ‘Buy’ call on the shares of CCL Products, with a target price of Rs 1,425 apiece. This implies an upside potential of nearly 27% from the stock’s previous closing price of Rs 1,125 apiece on NSE. The shares of the company have fallen around 1.5% in a week, and over 6% in one month, although they are up 23% in 2026 so far. In the longer term, CCL Products shares have gained 85% over three years and 187% over five years.
