Hot Stocks: Global brokerages see up to 10-18% upside in these 2 FMCG stocks

Goldman Sachs maintains a Buy rating on Marico with a target price of Rs 720, reflecting a 10% upside from the current market price of Rs 650.

The company is well-positioned to navigate the challenging macroeconomic environment effectively. Marico's flagship brand, Parachute, continues to gain market share despite inflationary pressures on input costs, showcasing its resilience.

Additionally, the Saffola portfolio, particularly in foods and digital-first brands, is delivering robust growth coupled with improving profitability metrics.


In the edible oils segment, price-led growth has supported performance. However, the Value-Added Hair Oils (VAHO) category remains a weak spot, though it is no longer a significant drag on Marico's overall performance.

The company faces a slight margin impact due to higher-than-anticipated copra inflation, but it remains well-equipped to sustain its positive momentum.

Jefferies on Colgate-Palmolive: Buy | Target Rs 3,570 | LTP Rs 3,019 | Upside 18%

Jefferies maintains a Buy rating on Colgate-Palmolive with a target price of Rs 3,570, implying an 18% upside from the current price of Rs 3,019.

The company's CEO has emphasized a strong focus on growth, aiming to outpace both the category and its FMCG peers.


While last year’s margins were an outlier, they are expected to stabilize within a range as the company plans to increase brand investments.

Colgate is also expanding its focus beyond oral care, with intentions to introduce products from its parent company’s portfolio.

The company is taking a holistic approach to interventions, covering the entire value chain, including product innovation, packaging, advertising, distribution, and supply chain enhancements.

However, a short-term concern lies in consumption trends, with urban growth showing signs of weakening and rural growth flattening, which may pose challenges in the near term.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)