FMCG stocks 2026: JM Financial picks 6 buys, 4 adds

Why brokerages are turning selective on FMCG

Brokerage commentary on Indian FMCG is becoming more stock-specific rather than sector-wide, with analysts highlighting pockets of stronger execution and clearer earnings visibility. In its latest stance, JM Financial said it is staying selective within its FMCG coverage. The brokerage flagged a preference for a handful of heavyweights, naming Marico, Honasa Consumer, Godrej Consumer Products (GCPL) and Varun Beverages (VBL).

That selectivity is visible in its rating distribution as well. JM Financial remains constructive on a set of names with ‘Buy’ ratings, but it is also using ‘Add’ for several large caps where upside appears more measured. Separately, VBL has seen multiple post-result target revisions from other brokerages, creating a wide range of published targets and ratings.

JM Financial’s preferred FMCG names

JM Financial’s note explicitly called out four preferred stocks within coverage: Marico, Honasa Consumer, GCPL and VBL. The brokerage did not provide a detailed rationale in the provided text, but the phrasing indicates it is focusing on a narrower group of companies rather than a broad FMCG rally.

This matters for investors because FMCG portfolios often cluster around a few mega caps. A “selective” approach implies analysts are differentiating between companies on factors such as growth outlook, execution consistency, and valuation comfort, even within the same sector. It also suggests that incremental inflows into FMCG may not be evenly distributed across the universe.

Six ‘Buy’ calls from JM Financial and their targets

JM Financial said it has a ‘Buy’ rating on six stocks in its coverage universe. The provided list includes Bikaji Foods International, Britannia Industries, Godrej Consumer Products, Honasa Consumer, Marico, and Varun Beverages. Each has a stated target price.

The targets span packaged foods, staples, personal care, and beverages. Notably, the list combines consumer defensives (Britannia, Marico, GCPL) and a relatively newer listed consumer brand (Honasa), alongside VBL which is often tracked as a consumption proxy with execution and distribution as key drivers.

Four ‘Add’ ratings: Dabur, HUL, ITC, TCPL

Alongside the ‘Buy’ basket, JM Financial assigned ‘Add’ ratings to Dabur India and Hindustan Unilever (HUL). Dabur’s target was set at Rs 505, while HUL’s target sits at Rs 2,435.

The brokerage also maintained ‘Add’ on ITC with a target of Rs 325, and on Tata Consumer Products (TCPL) with a target of Rs 1,250. While ‘Add’ is still a positive stance, it typically signals a more balanced risk-reward compared to the higher-conviction ‘Buy’ calls.

JM Financial targets at a glance

Varun Beverages: a crowded trade with diverging targets

VBL stands out because it is present in JM Financial’s preferred list and also features in multiple broker updates included in the provided text. Axis Direct maintained a ‘Buy’ with a target of Rs 630, citing an upside of 20.4%. Emkay also maintained ‘Buy’ and raised its target to Rs 620 from Rs 540, mentioning a 5-6% EPS increase, a PAT beat of 11%, and the “addition of Twizza.”

Motilal Oswal’s result-linked entry in the provided text shows a ‘Buy’ with a target of Rs 600 and an upside of 14.7%. In another note, Motilal Oswal reiterated ‘Buy’ and raised its target to Rs 550, saying it expects revenue, EBITDA and profit after tax to grow at a CAGR of 13%, 13% and 16% respectively over CY25 to CY27, valuing the stock at 45 times CY27 estimated EPS.

At the same time, the text also includes ‘Hold’ calls and targets for VBL, including a ‘Hold’ with a target of Rs 535 and an upside of 2.3%, and another ‘Hold’ with a target of Rs 422 marked “Target met.” The range underscores how VBL’s valuation and earnings assumptions can lead to materially different target outcomes.

VBL targets and broker actions mentioned

What the available price snapshots say about VBL

The provided text contains multiple price snapshots and labels noting that prices may be delayed. One snapshot shows VBL’s last traded price at Rs 390.50 versus a previous close of Rs 389.30, describing a 0.31% move. Another snapshot shows VBL at Rs 384.10 with an intraday move of -1.34%, with day’s high at Rs 391.55 and low at Rs 381.50.

The same excerpt lists 52-week levels for VBL at Rs 568.50 (high) and Rs 381.00 (low). It also includes “Upper circuit 422.50” and “Lower circuit 345.70” in that view. These figures provide context on how broker targets compare with different observed market prices and trading bands shown in the data.

Motilal Oswal’s FMCG basket into earnings season

Beyond single-stock updates, Motilal Oswal Financial Services (MOFSL) also published an FMCG pick list ahead of the earnings season. The brokerage said it believes its consumer coverage universe will deliver revenue and EBITDA year-on-year growth in 1QFY26 of +6% and +1%.

In that list, MOFSL cited a target of Rs 2,850 for HUL, stating this implied a 19% upside over Rs 2,400 where the stock ended on Tuesday. For ITC, MOFSL’s target was Rs 515, described as a 23% upside over the last closing of Rs 418. For VBL, MOFSL cited a target of Rs 620 and said this represented a potential upside of 36% over the Tuesday close of Rs 458.25.

Market impact: how investors can read the mixed signals

The immediate takeaway from the provided broker notes is that FMCG positioning is fragmenting across companies and across broker houses. JM Financial’s “selective” preference list narrows attention to Marico, Honasa, GCPL and VBL, while still keeping a broader set of ‘Buy’ and ‘Add’ calls across the sector.

For VBL, the spread of targets and ratings is particularly wide, spanning ‘Hold’ targets like Rs 422 and Rs 535 to ‘Buy’ targets like Rs 600, Rs 620 and Rs 630. Such dispersion often reflects differences in how analysts model near-term performance versus long-term growth, and how much valuation premium they are willing to pay for execution.

Why the story matters for FMCG portfolios

FMCG is typically seen as a steady compounder space, but the provided recommendations show that broker conviction is being expressed through stock selection rather than blanket sector calls. JM Financial’s target list also shows where it sees higher upside potential within its coverage, versus where it prefers an incremental ‘Add’ stance.

For investors tracking consensus, VBL’s broker updates show how quickly targets can change after results, and how valuation frameworks differ. Motilal Oswal’s longer-horizon view includes explicit CAGR expectations for revenue, EBITDA and PAT over CY25-CY27, while other notes focus on post-result tweaks such as EPS changes and a mentioned product addition.

Conclusion

JM Financial’s latest FMCG positioning keeps the tone clear: stay selective, with preference for Marico, Honasa, GCPL and VBL, and a defined basket of six ‘Buy’ calls alongside four ‘Add’ ratings and targets. Separately, VBL continues to attract frequent broker updates, with targets in the provided text ranging from Rs 422 (Hold, target met) to Rs 630 (Buy), alongside different stated upside calculations based on different reference prices.

The next set of catalyst points, as reflected in the notes, will be quarterly results commentary and subsequent target revisions, particularly for high-ownership consumer names where small estimate changes can drive meaningful target moves.