• Sector trades near 10-year average NTM PE of 52x
• JM Financial prefers Marico, Honasa, GCPL, VBL among FMCG stocks
• Six stocks rated ‘Buy’; Nestle India is only ‘Reduce’ call

A latest sector update from JM Financial outlined the Q4FY26 performance of Indian consumer staples. The brokerage characterises the quarter as broadly stable but cautions that maintaining sales growth would be the key driver for the pack moving forward.  

The consumer sector is trading at about forward-looking price-to-earnings (NTM PE) multiple of roughly 52x, which closely tracks its 10-year historical average, the brokerage said noting “We expect F&B players’ outperformance to continue with healthy EBITDA growth.”

“The West Asia crisis in Mar’26 led to a sharp increase in input costs (crude derivatives, packaging costs, palm oil), adverse currency movement and supply chain disruptions. Most of the players have taken calibrated price hikes (3–7%) to mitigate the conflict’s impact,” it said.

Preferred stocks

Amid this, the firm preferred a select few FMCG heavyweights. "We stay selective - prefer Marico, Honasa, GCPL and VBL within our coverage," the brokerage said.

Target price & ratings

JM Financial remains bullish on several players, placing a ‘Buy’ rating on six stocks within its coverage universe. Bikaji Foods International Ltd with a target price of Rs 755. Similarly, Britannia Industries Ltd secured a ‘Buy’ tag with a target of Rs 6,355. Godrej Consumer Products Ltd (GCPL) also has a ‘Buy’ call with a target of Rs 1,225. Honasa Consumer Ltd, was assigned a ‘Buy’ rating and a target of Rs 420. 

Rounding out the top picks are Marico Ltd, with a ‘Buy’ rating and a target of Rs 930, and Varun Beverages Ltd (VBL), which has a ‘Buy’ call alongside a target price of Rs 600.

While Colgate Palmolive (India) Ltd holds an ‘Add’ rating with a target price of Rs 2,275. Dabur India Ltd and Hindustan Unilever Ltd (HUL) both received ‘Add’ ratings; Dabur's target is set at Rs 505, while HUL's target sits at Rs 2,435. 

ITC Ltd holds an ‘Add’ rating with a target of Rs 325, and Tata Consumer Products Ltd (TCPL) also has an ‘Add’call with a target of Rs 1,250.  Standing out as the lone bearish call in the current coverage universe is Nestle India Ltd. JM Financial pinned a ‘Reduce’ rating on the FMCG giant, setting a target price of Rs 1,345.