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Consumption Stocks in India

Consumption is a broad investing theme which covers firms producing products for personal consumption.

These include daily essentials such as food and beverages, household and home care products, paper goods, alcohol, tobacco, cosmetics, and consumer durables like televisions and air conditioners, etc.

Its biggest components are FMCG and consumer durables. Both have a bright future in India. The durables industry is set to grow at 12% for the next 5 years.

The big drivers of consumption in India are a rising middle class with more disposable income and a shift towards incremental spending. In fact, the middle class is projected to drive 75% of total consumption in India by 2030.

Despite the restrictions due to Covid-19 and rising inflation, consumer firms quickly rebounded to near normalcy. Food and personal care firms have already put the pandemic behind them.

Consumption stocks are among the safest stocks in the market. They have low or no debt, they're growing fast, have good margins, cash flows, and return ratios.

However, for this very reason these stocks are extremely popular. Thus, they usually trade at expensive valuations. Investors should be careful to not buy overvalued consumption stocks.

Use Equitymaster's stock screener to find the most overvalued stocks.

Check out the list of consumption stocks on the NSE here.

For more detailed updates, check the latest NIFTY India Consumption stock results and see the latest NIFTY India Consumption long term chart.

Use Equitymaster's stock screener to find the best consumption stocks in the market.

If you're interested specifically in FMCG stocks, read our FMCG sector report and check out the latest FMCG sector results.

Also use Equitymaster's Stock Screener to find the top FMCG companies in India.

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