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Investment in securities market are subject to market risks. Read all the related documents carefully before investing
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2 Stocks to Ride India's EV Megatrend
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- Consumption Stocks in India
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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Top 5 Pharma Companies in India by Growth
Apr 30, 2023
China plus one, government's PLI scheme, and growing consumption are driving the growth of these five pharma companies.
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Trading Strategy for Budget 2023
Jan 19, 2023
In this video, I'll show you an options strategy for Budget 2023. I also discuss sectors I'm bullish on leading up to the Budget.
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Tata Steel vs JSW Steel: Which Steel Stock is Better?
Jul 11, 2022
As steel consumption rises, these companies seem to be promising leaders in the industry. Who has a better chance?
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The Russia-Ukraine War: Lessons for Indian Investors
Apr 11, 2022
How do we profit from our market experience during the war in Ukraine?
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This Small-cap Textile Stock Hits a Record High After Vijay Kedia Buys Stake. Here's why it Could Rally More...
Feb 7, 2022
China plus one strategy, the GST council's move to defer the rate hike, rising consumption, and other reasons have sent textile stocks soaring.
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The Worst Sector in the Market
May 10, 2021
The worst sector in the stock market according to the charts.
My Best Investing Recommendations for 2020
Dec 30, 2019
What are best places to park your money in 2020?
How You Can Play India's Biggest Theme in the Coming Years
Apr 30, 2019
India will be the biggest consumption market in the next few years. How can you benefit from this?
Modi or Gandhi - Who Will Take Sensex to 100,000?
Feb 13, 2019
It won't be long before this transformation creates many multibaggers in the stock market. Here's why...
Thermax: Consumption led industries bring in the orders
Nov 14, 2016
Thermax has announced its second quarter (2QFY17) results. During 2QFY17, while topline fell 15% YoY, bottomline grew by 33% YoY. Here is our analysis of the results.
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Top 5 Power Companies in India by Growth
Jan 30, 2023
With power consumption on the rise, these five power companies are worth keeping an eye on.
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Adani Power vs Tata Power: Which Power Stock is Better?
Aug 5, 2022
Rising electricity consumption provides a lot of scope for growth. Which company has a better chance at capturing it?
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Power Stocks Rise with Temperature. Is the Momentum Here to Stay?
Apr 13, 2022
Power stocks surge with an expectation of high demand during summer.
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Top 5 Consumption Stocks to Add to Your Watchlist
Apr 11, 2022
Consumption stocks add much needed balance to your investment portfolio. In the long run, they also offer steady returns.
Avoid the Worst Sector in the Market
May 11, 2021
The worst sector in the stock market according to the charts.
Tata Steel Shares Surge to Record High Post Q4 Results. Here's What Investors Need to Know
May 6, 2021
Tata Steel swung to quarterly profitability as the economic recovery drove a rebound in steel consumption.
You Should Ignore the Media and Focus on What You Can Control
Dec 26, 2019
Focus on various long-term trends are playing out in India largely ignored by the mainstream media.
ICICI Prudential Bharat Consumption Fund: A Worthy Proposition?
Apr 3, 2019
PersonalFN analyses if investing in the New Fund Offer: ICICI Prudential Bharat Consumption Fund will be worthy proposition based on its investment objective, asset allocation, investment strategy and the outlook.
The One Big Theme I'm Most Bullish on Right Now
Apr 11, 2018
The capex revival will not be sudden. Investments are likely to be scattered initially. The revival will start in select pockets. I'm most bullish on this one..
Steel Industry: Key Growth Drivers
Jun 3, 2008
Riding on a booming economy and escalating demand, the domestic steel consumption has grown manifold in the last few years. The Indian steel industry has registered an average growth rate of more than 10% CAGR in output in the last five years. During the same period, steel consumption has also moved in perfect lockstep and has maintained a growth rate of 10%.
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