By Admin 
Stocks to buy: The series of results for the third quarter of FY26 is now over. Most companies in the FMCG sector have shown a sharp recovery in growth for the December quarter. Experts believe that the reason for this is the gradual decline in inflation and strength in demand. Especially, the prices of food items have come down in the last few months.
Brokerage firm Axis Direct said in a report, the improvement in consumer confidence indicates a change in overall consumption trends. Going forward, volume growth is expected to accelerate. With stable demand and supportive macro backdrop and benefits from GST related changes, management expects FY27 to outperform FY26 with growth remaining the key strategic focus. In this sequence, let us see which FMCG stocks the brokerage has confidence in:-
Nestle India
Brokerage Axis Direct has declared Nestlé shares as its top pick. A target price of Rs 1500 has been kept for this. The brokerage believes that Nestle is in a better position for long term growth. Its market penetration is becoming stronger due to its growing domestic franchise, continuous innovation and distribution. However, continued fluctuations in prices of coffee, cocoa and edible oils may put pressure on margins in the near future, but its strong pricing power along with decline in milk prices and efficiency efforts can mitigate cost issues to some extent.
Britannia
Axis Direct has given a target price of Rs 7,170 to Britannia shares. In fact, there are many companies in the FMCG sector like Britannia, which are seeing initial recovery in demand in urban and rural markets. It is being supported by stable input costs and improving margins. Due to reduction in GST, demand recovery is expected to accelerate due to cheaper goods, further reduction in prices of daily used items, as well as improvement in consumer sentiment, due to which branded FMCG and discretionary categories will soon see good volume growth.
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