Top Food and Beverage Stocks in India to Buy in 2022!

Top Food & Beverage Stocks in India to Buy in 2022. The dependence on food and beverages has made companies engaged in the business one of the most attractive investments, whereas FMCG is the fourth-largest sector in India, as food and beverages make up 19% of this sector.

Nestle India Ltd

The company is primarily involved in the food business, and the company’s product groups include Milk Products and Nutrition, Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages, and Confectionery. The Milk Products and Nutrition product group includes dairy whitener, condensed milk, ultra-heat treated milk, yogurt, maternal and infant formula, baby foods, and health care nutrition, whereas its Prepared Dishes and Cooking Aids product group includes noodles, sauces, seasonings, and cereals; while its Powdered and Liquid Beverages product group includes instant coffee, instant tea, ready to drink beverages, and sugar confectionery. The company manufactures products under brand names such as NESCAFE, MAGGI, MILKY BAR, KIT KAT, BAR-ONE, MILKMAID, and NESTEA. It also offers products for daily consumption and use, such as Nestle Milk, Nestle SLIM Milk, Nestle Dahi, and Nestle Jeera Raita.

  • Market Cap- ₹ 192,117 Cr.
  • Current Price- ₹ 19,926
  • High / Low- ₹ 20,609 / 16,000
  • Stock P/E- 83.7
  • Book Value- ₹ 241
  • Dividend Yield- 1.00 %
  • ROCE- 147 %
  • ROE- 113 %
  • Face Value- ₹ 10.0

Britannia Industries Ltd

It is primarily involved in the manufacturing and sale of various food products. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk, and yogurt. Its biscuit products include Good Day, Crackers, NutriChoice, Marie Gold, Tiger, Milk Bikis, Jim Jam + Treat, Bourbon, Little Hearts, and Pure Magic. Its bread products include Whole Wheat Bread, White Sandwich Breads, Daily Breads, and Bread Assortment. Its dairy products include cheese, milk-based beverages, Fresh Dairy, and Everyday Goodness. Its cake products include Gobbles, Tiffin Fun, Nut & Raisin, Muffills, Layerz, Rollyo, and Fudgeit, and it also provides Toastea, Treat Creme Wafer, and Treat Croissant. Its geographical segments include India and Outside India, while its products are exported to over 79 countries across the world, and its subsidiaries include Britchip Foods Limited, Manna Foods Private Limited, and Snacko Bisc Private Limited.

  • Market Cap- ₹ 90,271 Cr.
  • Current Price- ₹ 3,748
  • High / Low- ₹ 4,153 / 3,050
  • Stock P/E- 61.6
  • Book Value- ₹ 106
  • Dividend Yield- 1.51 %
  • ROCE- 41.5 %
  • ROE- 49.7 %
  • Face Value- ₹ 1.00

Marico Ltd

The Company is a consumer products company operating in the health, beauty, and wellness space. The Company’s principal products include edible oils, hair care, and personal care. Its portfolio of brands includes Parachute, Saffola, Saffola FITTIFY Gourmet, Coco Soul, Parachute Advansed, Hair and Care, Nihar Naturals, Set Wet, Set Wet Studio X, Veggie Clean, Kaya Youth, Travel Protect, House Protect, Mediker, Parachute Advansed Body Lotion, Revive, Veggie Clean, Parachute Advansed Body Lotion, Revive, Veggie Clean, Parachute Advansed, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Veggie Clean, Parachute Advansed Coconut Creme Oil, Revive, Veggie Clean, Parachute Advansed Coconut Creme Oil, Revive and Beardo, whereas its international portfolio includes brands such as Fiancee, Black Chic, Code 10, Ingwe, X-men, and Thuan Phat, and it operates over eight factories across India in various locations, and for international operations it operates across Bangladesh, Singapore, Egypt, Malaysia, Middle East, Nepal, Malaysia and South Africa.

  • Market Cap- ₹ 67,957 Cr.
  • Current Price- ₹ 526
  • High / Low- ₹ 608 / 456
  • Stock P/E- 54.8
  • Book Value- ₹ 26.4
  • Dividend Yield- 1.76 %
  • ROCE- 42.7 %
  • ROE- 36.6 %
  • Face Value- ₹ 1.00

Varun Beverages Ltd

It is an India-based company that produces, bottles, and distributes beverages, while the Company operates franchisee of PepsiCo, as its diversified business conglomerate includes beverages, quick-service restaurants, dairy, and healthcare, while it produces and distributes a range of carbonated soft drinks (CSDs), as well as a selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo, while PepsiCo CSD brands produced and sold by the Company include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Mountain Dew Ice, Seven-Up Nimbooz Masala Soda, Evervess, Sting, Gatorade, and Slice Fizzy Drinks.  PepsiCo NCB brands produced and sold by the Company include Tropicana Slice, Tropicana Juices (100%, Delight, Essentials), Nimbooz, as well as packaged drinking water under the brand Aquafina, and to produce all these the company has 31 manufacturing plants in India and six manufacturing plants in international geographies.

  • Market Cap- ₹ 67,173 Cr.
  • Current Price- ₹ 1,034
  • High / Low- ₹ 1,084 / 539
  • Stock P/E- 51.7
  • Book Value- ₹ 74.1
  • Dividend Yield- 0.24 %
  • ROCE- 17.4 %
  • ROE- 18.6 %
  • Face Value- ₹ 10.0

Patanjali Foods Ltd

It was formerly called Ruchi Soya Industries Limited. It is an India-based company, which is engaged in the edible oil business, and the company is engaged in the manufacturing and marketing of a healthy range of edible oils and soya foods in India. To produce its products, the company owns approximately 22 manufacturing units that cumulatively translate to a refining capacity of over 11000 tonnes per day, a seed crushing capacity of 11000 tonnes per day, and a packaging capacity of 10000 tonnes per day, while the company’s brands include Nutrela, Mahakosh, Sunrich, and Ruchi No.1. The Company’s Nutrela soya food products include Nutrela Soya Chunks, Nutrela Soya Granules and Nutrela Soya Mini Chunks, and it also offers Nutrela High Protein Chakki Atta and Nutrela Honey, while its Biscuits Division offers Patanjali Aarogya Multigrain biscuits, Patanjali Digestive Whole Wheat cookies, Patanjali Butter cookies, Patanjali Creamfeast Chocolate Biscuits, Patanjali Creamfest Elaichi Biscuits, and Patanjali Doodh Biscuits.

  • Market Cap- ₹ 44,203 Cr
  • Current Price- ₹ 1,221
  • High / Low- ₹ 1,231 / 700
  • Stock P/E- 50.6
  • Book Value- ₹ 209
  • Dividend Yield- 0.00 %
  • ROCE- 16.3 %
  • ROE- 15.5 %
  • Face Value- ₹ 2.00

Conclusion

The processed food market is expected to grow to $220 billion by 2025 and the Indian grocery market is expected to touch $37 billion by then, whereas one is expected to be enhanced by eCommerce platforms further contributing to their growth. These growth expectations have further made it an attractive investment and a must-have sector in one’s portfolio.

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