Which FMCG company is best for investment?
Table of Contents
- 1 Which FMCG company is best for investment?
- 2 What is the best food stock to invest?
- 3 What is the price of Whole Foods stock?
- 4 Is FMCG sector capital intensive or capital efficient?
- 5 How has covid-19 impacted the FMCG sector in India?
- 6 Why do FMCG companies like HUL and ITC have high interest coverage?
Which FMCG company is best for investment?
Summary Table of the best FMCG Stocks to buy now
| Sr.No | Company Name | Industry |
|---|---|---|
| 1 | HUL | Household & Personal products |
| 2 | Nestle India | Food & Beverages |
| 3 | ITC | Cigarettes & FMCG others |
| 4 | Britannia Industries | Food & Beverages |
What is the best food stock to invest?
Best Food Stocks To Buy Now
- Unilever PLC (NYSE:UL)
- Celsius Holdings, Inc. (NASDAQ:CELH)
- Hormel Foods Corporation (NYSE:HRL)
- Conagra Brands, Inc. (NYSE:CAG)
- Kellogg Company (NYSE:K)
- Sanderson Farms, Inc. (NASDAQ:SAFM)
What is s market cap?
Market cap—or market capitalization—refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For example, a company with 20 million shares selling at $50 a share would have a market cap of $1 billion.
What is the price of Whole Foods stock?
Whole Foods Market, Inc. Share Price
| Open Price | |
|---|---|
| High Price | |
| Low Price | |
| Close Price | 41.99 |
| Prev. Close | 41.99 |
Is FMCG sector capital intensive or capital efficient?
FMCG sector is capital intensive, however these companies already have well established plants and hence not incur much capital expenditure. This helps these companies to generate strong return ratios. With highest ROCE of 114.7\%, HUL acquires the first position and hence scored 5 points.
How good is the interest coverage ratio of FMCG companies?
As HUL and ITC are zero debt companies, they have higher interest coverage ratio. Overall, FMCG companies have good interest coverage ratio. Usually interest coverage ratio above 2.5 x is healthy. 7. Operating Profit Margin (\%) It is calculated as Operating Profit / Total Revenue.
How has covid-19 impacted the FMCG sector in India?
It is the fourth largest sector in India and household and personal care account for ~50\% FMCG sector sales. In India, demand from semi-urban and rural is growing at a faster pace. This is one sector which was not much impacted due to COVID-19 as most of the products come under “essential items” category.
Why do FMCG companies like HUL and ITC have high interest coverage?
This ratio gives the ability of the company to pay interest from its operating profit. As HUL and ITC are zero debt companies, they have higher interest coverage ratio. Overall, FMCG companies have good interest coverage ratio. Usually interest coverage ratio above 2.5 x is healthy.