ITC, HUL, Asian Paints, Britannia, Nestle, Tata Consumer, Marico, Dabur: Target prices
“We prefer Marico and Godrej Consumer in staples, CCL Products and Dodla Dairy in small/ midcaps, and Berger Paints in paints,” Systematix said.
- Feb 17, 2026,
- Updated Feb 17, 2026 11:28 AM IST
Consumer staples companies have posted a meaningful acceleration in the third quarter of FY 2026, delivering an aggregate revenue growth of nearly 9 per cent year-on-year (YoY), said Systematix Institutional Equities. This growth was underpinned by a 6 per cent rise in volumes, it said.
“Increase in volume grammages/sales realisations post GST-cuts in categories such as biscuits, noodles, dairy, snack foods, toothpaste, hair oils, soaps, chocolates, coffee; and channel restocking over November-December after significant GST-related trade disruption destocking over September-October,” Systematix said.
Systematix expects GST-related topline growth to continue accruing for relevant categories over the next few quarters. With input prices for commodities like palm oil, wheat, and tea stabilising or correcting, the brokerage sees potential for gross margins to improve further in FY27.
“We prefer Marico and Godrej Consumer in staples, CCL Products and Dodla Dairy in small/ midcaps, and Berger Paints in paints,” Systematix said.
Target prices and ratings as per Systematix:
ITC: Systematix maintains a ‘Hold’ rating on ITC with a target price of Rs 355. The conglomerate saw its cigarette volumes grow by 6.5 per cent YoY, while its FMCG segment grew 11 per cent, led by staples like atta and biscuits, the note highlighted.
Hindustan Unilever (HUL): The brokerage has a ‘Hold’ rating on the FMCG major with a target price of Rs 2,585. HUL’s subdued margin guidance and its commentary on prioritising growth over margins as key factors in maintaining a cautious stance, the brokerage said.
Asian Paints: The brokerage has a ‘Buy’ rating on Asian Paints with a target price of Rs 3,160. Systematix noted that the company outperformed peers with an operating margin expansion of 100 basis points YoY.
Britannia Industries: Systematix has a ‘Hold’ rating on the biscuit maker with a target price of Rs 6,785. Britannia was a clear outperformer in terms of profitability, with operating margins expanding by 320 basis points YoY. The brokerage said that market share, brand-building/A&P initiatives, growth and competition in adjacencies, and OPMs continue to be key monitorables.
Nestle India: The brokerage has a ‘Hold’ rating on Nestle with a target price of Rs 1,285. However, Systematix noted that elevated cost inflation in milk and coffee limited margin gains, alongside a strong surge in advertising spending.
Tata Consumer Products: The brokerage maintains a ‘Hold’ rating on Tata Consumer with a target price of Rs 1,170.
Marico: Systematix has a ‘Buy’ call on Marico with a target price of Rs 865. The brokerage prefers Marico for its pricing power in key categories and potential to gain market share.
Dabur India: The brokerage has a ‘Hold’ rating on Dabur with a target price of Rs 570.
Godrej Consumer Products (GCPL): The brokerage has a ‘Buy’ rating on GCPL with a target price of Rs 1,440. Systematix prefers GCPL within the staples space for its relatively better growth tailwinds.
Other FMCG stock recommendations:
Berger Paints: Buy, target price: Rs 570
Kansai Nerolac: Hold, target price: Rs 245
CCL Products: Buy, target price: Rs 1,180
Dodla Dairy: Buy, target price: Rs 1,525
Prataap Snacks: Hold, target price: Rs 950
Patanjali Foods: Buy, target price: Rs 660
Hindustan Foods: Buy, target price: Rs 665
Consumer staples companies have posted a meaningful acceleration in the third quarter of FY 2026, delivering an aggregate revenue growth of nearly 9 per cent year-on-year (YoY), said Systematix Institutional Equities. This growth was underpinned by a 6 per cent rise in volumes, it said.
“Increase in volume grammages/sales realisations post GST-cuts in categories such as biscuits, noodles, dairy, snack foods, toothpaste, hair oils, soaps, chocolates, coffee; and channel restocking over November-December after significant GST-related trade disruption destocking over September-October,” Systematix said.
Systematix expects GST-related topline growth to continue accruing for relevant categories over the next few quarters. With input prices for commodities like palm oil, wheat, and tea stabilising or correcting, the brokerage sees potential for gross margins to improve further in FY27.
“We prefer Marico and Godrej Consumer in staples, CCL Products and Dodla Dairy in small/ midcaps, and Berger Paints in paints,” Systematix said.
Target prices and ratings as per Systematix:
ITC: Systematix maintains a ‘Hold’ rating on ITC with a target price of Rs 355. The conglomerate saw its cigarette volumes grow by 6.5 per cent YoY, while its FMCG segment grew 11 per cent, led by staples like atta and biscuits, the note highlighted.
Hindustan Unilever (HUL): The brokerage has a ‘Hold’ rating on the FMCG major with a target price of Rs 2,585. HUL’s subdued margin guidance and its commentary on prioritising growth over margins as key factors in maintaining a cautious stance, the brokerage said.
Asian Paints: The brokerage has a ‘Buy’ rating on Asian Paints with a target price of Rs 3,160. Systematix noted that the company outperformed peers with an operating margin expansion of 100 basis points YoY.
Britannia Industries: Systematix has a ‘Hold’ rating on the biscuit maker with a target price of Rs 6,785. Britannia was a clear outperformer in terms of profitability, with operating margins expanding by 320 basis points YoY. The brokerage said that market share, brand-building/A&P initiatives, growth and competition in adjacencies, and OPMs continue to be key monitorables.
Nestle India: The brokerage has a ‘Hold’ rating on Nestle with a target price of Rs 1,285. However, Systematix noted that elevated cost inflation in milk and coffee limited margin gains, alongside a strong surge in advertising spending.
Tata Consumer Products: The brokerage maintains a ‘Hold’ rating on Tata Consumer with a target price of Rs 1,170.
Marico: Systematix has a ‘Buy’ call on Marico with a target price of Rs 865. The brokerage prefers Marico for its pricing power in key categories and potential to gain market share.
Dabur India: The brokerage has a ‘Hold’ rating on Dabur with a target price of Rs 570.
Godrej Consumer Products (GCPL): The brokerage has a ‘Buy’ rating on GCPL with a target price of Rs 1,440. Systematix prefers GCPL within the staples space for its relatively better growth tailwinds.
Other FMCG stock recommendations:
Berger Paints: Buy, target price: Rs 570
Kansai Nerolac: Hold, target price: Rs 245
CCL Products: Buy, target price: Rs 1,180
Dodla Dairy: Buy, target price: Rs 1,525
Prataap Snacks: Hold, target price: Rs 950
Patanjali Foods: Buy, target price: Rs 660
Hindustan Foods: Buy, target price: Rs 665