Stocks to buy: There are many such stocks in the FMCG sector on which brokerages are bullish because the third quarter results of FY26 have seen a sharp recovery in the growth of these companies.

Brokerage is bullish on these FMCG sector stocks

Stocks to buy: The third quarter results for FY26 are now over. Most FMCG companies have seen a sharp recovery in growth for the December quarter. Experts attribute this to a gradual decline in inflation and strong demand. In particular, food prices have declined over the past few months. 

Brokerage firm Axis Direct stated in a report that improving consumer confidence indicates a shift in overall consumption trends. Going forward, volume growth is expected to accelerate. With stable demand, a supportive macro background, and benefits from GST-related changes, management expects FY27 to surpass FY26, with growth remaining a key strategic focus. In this context, let's take a look at the FMCG stocks the brokerage is confident in:

Nestle India

Brokerage Axis Direct has identified Nestlé shares as its top pick, with a target price of ₹1,500. The brokerage believes Nestlé is well-positioned for long-term growth. Its growing domestic franchise, continuous innovation, and distribution are strengthening its market penetration.

While the constant fluctuations in coffee, cocoa, and edible oil prices may put pressure on margins in the near future, its strong pricing power and efficiency efforts, coupled with the decline in milk prices, may mitigate the cost constraints to some extent.  

Britannia

Axis Direct has a target price of Rs 7,170 for Britannia shares. Britannia, like many other FMCG companies, is seeing an initial recovery in demand in both urban and rural markets. This is supported by stable input costs and improving margins.

The reduction in GST, leading to cheaper goods, further reduction in prices of daily use items, and improvement in consumer sentiment, is expected to further accelerate demand recovery, leading to good volume growth in branded FMCG and discretionary categories soon. 

Bikaji Foods

JM Financial is bullish on Bikaji Foods. The brokerage has a target price of Rs 785, compared to Thursday's share price of Rs 638.80. This means it has the potential for a 23% increase. 

Honasa Consumer

The brokerage has a target price of Rs 375 for Honasa Consumer shares, while Thursday's closing price was Rs 304.40, representing a nearly 23% upside. The company's performance in the HPC segment was impressive in the December quarter results.   

Apart from this, JM Financial has expressed confidence in Marico by giving a target price of Rs 875, ITC Rs 355, and Varun Beverages (VBL) Rs 550.