Best Cosmetics Stocks in India 2024
Best Cosmetics Stocks in India: Cosmetics stocks add beauty to your investment portfolio. Indians have always loved cosmetics, giving greater opportunities for the cosmetics and personal care industry to grow. This article introduces five stocks that operate in the cosmetics and personal care industry and have been consistent in terms of earnings along with good fundamentals.
Best Cosmetic Stocks in India
India’s #1 cosmetics stock: Hindustan Unilever (HUL)
Hindustan Unilever is a company that has a wide range of products across various segments, one of the important segments being beauty and personal care. Hindustan Unilever was founded in 1933. The company has a rich history of serving its products to the Indian population over the last 90 years.
The company primarily focuses on accelerating market development and formulating strategies focused on core growth. The company continually strives to add value to its customers by improving their health and well-being. Hindustan Unilever has 29 of its own factories and the company’s products in India are used in 9 in 10 households, which is a milestone in itself.
Hindustan Unilever has over 3,500 distributors and 9 million retail outlets across the country. Personal care brands owned by Hindustan Unilever include Lakme, Love Beauty & Planet, Novology, Pond’s, TRESemmé, Vaseline, ELLE 18, Glow & Lovely, Ax, Acnesquad, Clinic Plus, Dermalogica, Dove and Indulekha.
The company’s operating revenue increased from Rs 52,446 crores in FY 2022 to Rs 60,580 crores in FY 2023. This is a 15.51% year-on-year growth. The company’s net profit surged from Rs 8,892 crores in FY 2022 to Rs 10,143 crores in FY 2023, growing 14.06% year-on-year. The three-year average return on equity (ROE) is 22.47%. .
The three-year average return on invested capital (ROCE) is 27.27%. The promoters of the company hold 61.90% stake in the company. Foreign institutional investors (FIIs) hold 13.65% stake in the company. In the list of best cosmetics stocks in India, Hindustan Unilever was the first stock mentioned.
Best Cosmetics Stock in India #2: Dabur India
Dabur India in India is considered one of the leading companies in the consumer care sector. The company ranks first globally as an Ayurvedic and natural care company. Dabur India focuses more on creating a social impact on the society and improving the lives of many people through its products and services.
The company has more than 14 manufacturing facilities in the country. Looking at its international presence, Dabur India owns eight manufacturing facilities globally. 75% of sales occur domestically. And the remaining 25% comes from international business.
Dabur India has 7.7 million retail outlets across the country. Dabur India has an international presence in over 120 countries around the world. Personal care brands included in its portfolio include Fem, Oxylife and Gulabari. The company’s operating revenue increased from Rs 10,889 crores in FY 2022 to Rs 11,530 crores in FY 2023. This is a 5.89% year-on-year growth.
The company’s net profit surged to Rs 1,763 crores (TTM) from Rs 1,742 crores in fiscal 2022. The three-year average return on equity (ROE) is 21.70%. The three-year average return on invested capital (ROCE) is 25.47%.
The promoters of the company hold 66.25% stake in the company. Foreign institutional investors (FIIs) hold 16.49% of the shares.
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Best Cosmetics Stock in India #3: Gillette India
Gillette India is a company that provides services and products to various sectors, including the beauty and oral care sectors. Gillette India was founded in 1984. It was acquired (acquired) by Procter & Gamble Company (P&G) in late 2005.
Gillette India leverages all modes – department stores, grocery stores and mass retailers – to deliver products to customers more effectively. Gillette India has a wide range of products suitable for all types of classes. We provide mid-range to premium products that add value to our customers.
Some of the famous brands they own include Head & Shoulders, Pantene, Olay, and Old Spice. The company’s operating revenue increased from Rs 2256 crores in FY 2022 to Rs 2477 crores in FY 2023. This is a 9.79% year-on-year growth. The company’s net profit surged from Rs 289 crores in FY 2022 to Rs 356 crores in FY 2023.
The three-year average return on equity (ROE) is 36.68%. The three-year average return on invested capital (ROCE) is 46.92%. The promoters of the company hold 75% stake in the company. Foreign institutional investors (FIIs) hold 0.64% of the company’s shares.
Best Cosmetics Stock in India #4: FSN E-Commerce Ventures (Nykaa)
FSN E-Commerce Ventures, popularly known as Nykaa, is engaged in the business of personal care and fashion products. Nykaa has 13 warehouses spread across the country with a spacious capacity of 2.5 lacs square feet, making it easier to serve our customers.
Nykaa owns a series of in-house brands including Nykaa Naturals, Nykaa Cosmetics, Kay Beauty, Nykd by Nykaa, 20 Dresses, etc. The company’s operating revenue increased from Rs 3,774 crores in FY 2022 to Rs 5,144 crores in FY 2023. This is a 36.30% year-on-year growth.
The company’s net profit for fiscal 2022 was Rs 41 which, taking into account TTM, was Rs 33 Crores. The average return on equity (ROE) for three years is 6.49%. The three-year average return on invested capital (ROCE) is 7.69%.
The promoters of the company hold 52.24% stake in the company. Foreign institutional investors (FIIs) hold a 10.65% stake in the company.
#5 Best Cosmetics Stock in India: Emami
Emami has a wide range of products including personal care and health care products. Emami has over 450 products under 20 brand names. These products are sold under brand names such as BoroPlus, Fair and Handsome, Kesh King, Plus Balm, etc.
Emami acquired Zandu in 2008 to increase its presence in the market. In late 2015, it acquired Kesh King. German-based skincare brand Creme 21 was acquired in 2019. Despite these many acquisitions, the company’s debt is very low.
Emami has a wider reach in India with seven manufacturing units, over 4000 distributors and 4.9 million retail outlets. Emami’s presence is seen globally, serving 70 countries including SAARC, Africa and Europe.
The company’s operating revenue increased from Rs 3,187 crores in FY 2022 to Rs 3,406 crores in FY 2023. This is a 6.86% year-on-year growth. The company’s net profit in FY22 was Rs 837 Crore which fell slightly to Rs 627 Crore in FY23. The three-year average return on equity (ROE) is 32.53%.
The three-year average return on invested capital (ROCE) is 29.68%. The company’s promoters hold 54.84% stake in the company. Foreign institutional investors (FIIs) hold 12.86% of the shares. In the list of best cosmetics stocks in India, Emami ranks 5th in the list.
conclusion
This concludes the article “Best Cosmetics Stocks in India 2024”. To give you a quick overview of the article, we looked at five different stocks that have good financials and products in the personal care and cosmetics sector. This article outlined the company’s overview, operations, fundamentals, and key indicators.
Please leave your thoughts in the comments section below.
Written by Nishanth P
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