Equirus Maintains 'LONG' Rating on FMCG Stocks Amid Commodity Inflation

Equirus Securities has maintained its 'LONG' rating on 13 FMCG and consumer-staples stocks, despite commodity inflation rising across several key commodities. The list includes Britannia Industries Ltd, Godrej Consumer Products Ltd, Tata Consumer Products, Marico, Emami, Jyothy Labs, Mrs. Bectors Food Specialities, United Spirits, Procter & Gamble Hygiene and Health Care, Bikaji Foods International, Zydus Wellness, Safari Industries, and CCL Products (India).

In its September 1 industry update, Equirus said the raw-material environment had 'rotated rather than eased' in the second quarter of FY27. While crude-linked inputs are providing some relief, this is being partly offset by renewed inflation in sugar, menthol, cocoa, and coffee.

The brokerage noted that cereal-weighted portfolios remain relatively better placed, while companies with higher exposure to sugar, specialty ingredients, and coffee could face greater cost pressures. Among the key inputs, sugar has emerged as a major concern, with prices up 19% year-on-year and 20% quarter-on-quarter.