Why FMCG Is Back On Fund Managers’ Radar After Years Of Underperformance

Are FMCG stocks making a comeback - or is this just a lack of better ideas? In this conversation, the focus shifts to why investors are once again turning overweight on FMCG names like HUL, Dabur, Marico and ITC after years of muted returns. The discussion breaks the long-held myth that FMCG stocks always compound, highlighting extended periods of underperformance across marquee names. With consumption recovering from its 2023-24 lows, easing food inflation freeing up household budgets, and falling input costs supporting margins, the sector’s fundamentals are quietly improving. The key takeaway: markets change, stories mislead, and disciplined data-driven systems often spot opportunities well before narratives catch up.