VBL, ITC, Bikaji, others: Buy these 6 FMCG stocks for up to 23% upside, says JM Financial

Following the third-quarter earnings for FY26, brokerage firm JM Financial has maintained a positive outlook on select pockets of the fast-moving consumer goods (FMCG) sector, with six stock picks with a ‘Buy’ rating.

A major relief for consumer companies has been the stable raw material basket, which has finally stopped the gross margin compression that has troubled the sector for the past five quarters, the brokerage noted.

“F&B players outperformed HPC players on both sales and EBITDA growth,” JM financial said.

While JM Financial has a ‘Buy’ call on six names, it said in its report, “we prefer Britannia, Marico and Honasa.”

Honasa Consumer: The brokerage has set a target price of Rs 375. Against its Thursday trading price of Rs 304.40, this implies an upside of roughly 23% from Thursday’s share price of Rs 304.40. During the third quarter, Honasa emerged as a key outperformer within the HPC segment, it said.

Bikaji Foods: The snack manufacturer also has a target price of Rs 785, nearly 23% upside against its current market price of Rs 638.80. “Bikaji surprised on EBITDA margins (GM led), TCPL was inline,” JM Financial said.

Varun Beverages Ltd (VBL): JM Financial has set a target price of Rs 550 for the stock. “VBL delivered a mixed bag, as volume beat was offset by weakness in realisation/margin,” the brokerage said.

Britannia Industries: With a target price of Rs 7,000. The brokerage pointed out that channel checks suggest an acceleration in sales growth for Britannia in the upcoming fourth quarter.

Marico: JM Financial expects Marico to sustain its ongoing volume momentum while also improving its EBITDA growth. The stock has a target price of Rs 875.

ITC: Completing the buy list, ITC holds a target price of Rs 355. “Overall revenue performance for our Staples (ex-ITC) coverage was c.2% better than our/Street’s expectations,” the brokerage said.