A Fundamental Analysis On Three Indian FMCG Companies

A fundamental Analysis on Three FMCG Companies
School of Management Studies Vatakara, University of Calicut
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LIST OF CONTENTS
CHAPTER TITLE PAGE NO.
1 INTRODUCTION 1
1.1 Introduction to the Study 2
1.2 Industry Profile 3
1.3 Company Profile 14
1.4 Research Problem 26
1.5 Objectives of the Study 28
1.6 Research Methodology 30
1.7 Scope of the Study 35
1.8 Limitations of the Study 37
2 REVIEW OF LITERATURE 39
2.1 Fundamental Analysis 40
2.2 Authors Review 42
3 DATA ANALYSIS 45
3.1 Economy Analysis 46
3.2 Industry Analysis 49
3.3 Company Analysis 52
4 FINDINGS, SUGGESTIONS AND CONCLUSION 75
ANNEXURE 86
BIBLIOGRAPHY 93

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LIST OF TABLES
TABLE TITLE PAGE NO.
1 Economy Analysis 47
2 Operating Profit Margin 53
3 Net Profit Margin 55
4 Earnings Per Share (Basic) 57
5 Earnings Per Share (Diluted) 59
6 Dividend Per Share 61
7 Dividend Payout Ratio 63
8 Return on Equity 65
9 Earning Yield Ratio 67
10 Price to Book value Ratio 69
11 Price to Earnings Ratio 71
12 Intrinsic Value 73

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LIST OF CHARTS
CHART TITLE PAGE NO.
1 Operating Profit Margin 53
2 Net Profit Margin 55
3 Earnings Per Share (Basic) 57
4 Earnings Per Share (Diluted) 59
5 Dividend Per Share 61
6 Dividend Payout Ratio 63
7 Return on Equity 65
8 Earning Yield Ratio 67
9 Price to Book value Ratio 69
10 Price to Earnings Ratio 71
11 Intrinsic Value 73

School of Management Studies Vatakara, University of Calicut P a g e | 1
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CHAPTER I
INTRODUCTION

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1.1. INTRODUTION TO THE STUDY
Investment decision is a part of our economic life. Everybody takes such decision at
different context. Investment decisions are to be made in a systematic manner with two
approaches such as technical and fundamental analysis. The present study aims to
analyze the fundamental analysis of BSE listed FMCG companies in India with a
sample size of six companies for a period from 2006-07 to 2011-12. The objectives of
the study are to conduct Fundamental analysis for BSE listed FMCG companies and the
SWOT analysis for the FMCG industry. The Economic, Industry and company analysis
have been made to attain the objectives of the study. From the Economic analysis, it is
found that Gross National Product, Inflation, Interest rates, Exchange rate, Foreign
exchange reserves, Agricultural production, Government Receipts and Expenditure has
a positive growth rate during the study period. Gross Domestic Product, Gross Domestic
Capital Formation, Gross Domestic Savings and Balance of Payments have a negative
growth rate during the study period. The industry analysis found that India’s FMCG
sector is the 4th largest sector with the total market size of US$ 13 billion during the
year 2012. This sector is expected to grow to US$ 33.1 billion by 2015. Hence, it has
great potential in rural as well as urban market and it provides more employment
opportunities.
Motilal Oswal Financial Services Ltd. is a depository participant which is dealing with
share trading, commodity trading, mutual funds and portfolio management. It is one of
the leading stock broking firm in India which is providing online trading facilities to its
customers. The firm has a separate research wing which helps investors by giving
suggestions to buy or sell the scrip. The study cover fundamental analysis on selected
three companies from the Indian FMCG sector on the basis of share volume and market
capitalization. The study was carried on for a period of 21 days.

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1.2. INDUSTRY PROFILE

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1.2.1. STOCK MARKET
A stock market is a market for the trading of shares, debentures, derivatives and other
instruments of different companies listed on different stock exchanges. Although
common, the term ‘the stock market is a somewhat abstract concept for the mechanism
that enables the trading of company stocks. It is also used to describe the totality of all
stocks, especially within a country, for example in the phrase ‘the stock market was up
today’, or in the term ‘stock market bubble’
It is distinct from a stock exchange, which is in an entity (a corporation or a mutual
organization) in the business of bringing buyers and sellers of stocks together.
FUNCTIONS OF STOCK MARKET
The stock market occupies a pivotal position in the financial system. It performs several
economic functions and renders valuable services to the economy as a whole. They may
be summarized as below:
1. Liquidity and marketability
2. Safety of funds
3. Supply of long term funds
4. Flow of capital to profitable ventures
5. Motivation for improved performance
6. Promotion of investments
7. Marketing of new issues
HISTORY OF STOCK EXCHANGES IN INDIA
The first organized stock exchange in India was started in 1875 at Bombay and it
is stated to be the oldest in Asia. In 1894 the Ahmedabad Stock Exchange was started
to facilitate dealings in the shares of textile mills there. The Calcutta stock exchange
was started in 1908 to provide a market for shares of plantations and jute mills. Then
the madras stock exchange was started in 1920. At present there are 24 stock exchanges
in the country, 21 of them being regional ones with allotted areas. Two others set up in

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the reform era, viz., the National Stock Exchange (NSE) and Over the Counter
Exchange of India (OICEI), have mandate to have nation-wise trading.
They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai,
Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur’ Kanpur,
Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.
The Stock Exchanges are being administered by their governing boards and executive
chiefs. Policies relating to their regulation and control are laid down by the Ministry of
Finance. Government also Constituted Securities and Exchange Board of India (SEBI)
in April 1988 for orderly development and regulation of securities industry and stock
exchanges.
MAJOR PARTICIPANTS IN THE INDIAN STOCK MARKET
There are 23 stock exchanges in India. Among them two are national level stock
exchanges namely Bombay Stock Exchange (BSE) and National Stock Exchange of
India (NSE). The rest 21 are Regional Stock Exchange (RSE). Even though there are
23 stock exchanges in India, increase in turnover took place mostly in the large
exchanges at the expense of smaller ones.
BOMBAY STOCK EXCHANGE
Type : Stock exchange
Location : Mumbai, Maharashtra, India
Founded : 1875
Owner : BSE Limited
Key people : Ashishkumar Chauhan (MD & CEO)
Currency : Indian rupee (₹)
Market cap : US$ 1.7 trillion (23 Jan 2015)
Volume : US$ 93 billion (June 2014)
Indices : BSE SENSEX
BSE Small Cap
BSE Mid-Cap
BSE 500
Website : www.bseindia.com

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The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to 1855,
when four Gujarati and one Parsi stockbroker would gather under banyan trees in front
of Mumbai's Town Hall. The location of these meetings changed many times as the
number of brokers constantly increased. The group eventually moved to Dalal Street in
1874 and in 1875 became an official organization known as "The Native Share & Stock
Brokers Association".
On 31 August 1957, the BSE became the first stock exchange to be recognized by
the Indian Government under the Securities Contracts Regulation Act. In 1980, the
exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. In 1986,
it developed the BSE SENSEX index, giving the BSE a means to measure overall
performance of the exchange. In 2000, the BSE used this index to open its derivatives
market, trading SENSEX futures contracts. The development of SENSEX options along
with equity derivatives followed in 2001 and 2002, expanding the BSE's trading
platform.
Historically an open outcry floor trading exchange, the Bombay Stock Exchange
switched to an electronic trading system developed by CMC Ltd in 1995. It took the
exchange only fifty days to make this transition. This automated, screen-based
trading platform called BSE On-line trading (BOLT) had a capacity of 8 million orders
per day. The BSE has also introduced a centralized exchange-based internet trading
system, BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE
platform. The BSE is also a Partner Exchange of the United Nations Sustainable Stock
Exchange initiative, joining in
September 2012.
NATIONAL STOCK EXCHANGE
Type : Stock exchange
Location : Mumbai,, India
Founded : 1992
Owner : National Stock Exchange of India Limited
Key people : Chitra Ramkrishna (MD&CEO)
(₹)

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The National Stock Exchange of India Limited (NSE) is the leading stock exchange of
India, located in Mumbai. NSE was established in 1992 as the first demutualized
electronic exchange in the country. NSE was the first exchange in the country to provide
a modern, fully automated screen-based electronic trading system which offered easy
trading facility to the investors spread across the length and breadth of the country.
NSE has a market capitalization of more than US$1.65 trillion, making it the world’s
12th-largest stock exchange as of 23 January 2015. NSE's flagship index, the CNX
Nifty, the 50 stock index, is used extensively by investors in India and around the world
as a barometer of the Indian capital markets.
NSE was set up by a group of leading Indian financial institutions at the behest of the
Government of India to bring transparency to the Indian capital market. Based on the
recommendations laid out by the Govt. committee, NSE has been established with a
diversified shareholding comprising domestic and global investors. The key domestic
investors include Life Insurance Corporation of India, State Bank of India, IFCI
Limited IDFC Limited and Stock Holding Corporation of India Limited. And the key
global investors are Gagil FDI Limited, GS Strategic Investments Limited, SAIF II SE
Investments Mauritius Limited, Aranda Investments (Mauritius) Pte Limited and PI
Opportunities Fund I.
NSE offers trading, clearing and settlement services in equity, equity derivatives, debt
and currency derivatives segments. It is the first exchange in India to introduce
electronic trading facility thus connecting together the investor base of the entire
Currency : Indian rupee (₹)
No. of listings : 1,696
Market cap : US$1.65 trillion (23 Jan 2015)
Volume : US$442 billion (June 2014)
Indices : CNX Nifty
CNX Nifty Junior
CNX 500
Website : www.nseindia.com

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country. NSE has 2500 VSATs and 3000 leased lines spread over more than 2000 cities
across India.
The exchange was incorporated in 1992 as a tax-paying company and was recognized
as a stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956,
when P. V. Narasimha Rao was the Prime Minister of India and Manmohan Singh was
the Finance Minister. NSE commenced operations in the Wholesale Debt Market
(WDM) segment in June 1994. The capital market (equities) segment of the NSE
commenced operations in November 1994, while operations in the derivatives segment
commenced in June 2000.
REGIONAL STOCK EXCHANGES (RSE)
1. Ahmedabad Stock Exchange
2. Bangalore Stock Exchange
3. Bhubaneshwar Stock Exchange
4. Calcutta Stock Exchange
5. Cochin Stock Exchange
6. Coimbatore Stock Exchange
7. Delhi Stock Exchange
8. Guwahati Stock Exchange
9. Hyderabad Stock Exchange
10.Jaipur Stock Exchange
11.Kanara Stock Exchange
12.Ludhiana Stock Exchange
13.Madras Stock Exchange
14.Madhya Pradesh Exchange
15.Magadh Stock Exchange
16.Meerut Stock Exchange
17.OTC Exchange of India
18.Pune Stock Exchange
19.Saurashtra Kutch Stock Exchange

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20.Uttar Pradesh Exchange
21.Vadodara Stock Exchange
The Regional Stock Exchanges started clustering from the year 1894, when the first
RSE, the Ahmedabad Stock Exchange (ASE) was established. In the year 1908, the
second in the series, Culcutta Stock Exchange (CSE) came into existence.
During the early sixties, there were only few recognized RSE in India namely Culcutta,
Madras, Ahmedabad, Delhi, Hyderabad, and Indore. The number remained unchanged
for the next two decades. 1980s was the turning point and many RSEs were
incorporated. The latest is Coimbatore Stock Exchange and Meerut Stock Exchange.
1.2.2. FMCG INDUSTRY
Fast Moving Consumer Goods (FMCG) Industry in India is one of the fastest
developing sectors in the Indian economy. At present the FMCG Industry is worth US$
13.1 billion and it is the 4th largest in the Indian Economy. These products have very
fast turnaround rate, i.e. the time from production to the revenue from the sell of the
product is very less. In the present economic scenario, time is regarded as money, so
the FMCG companies have to be very fast in manufacturing and supplying these goods.
The Fast Moving Consumer Goods (FMCG) Industry in India include segments like
cosmetics, toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food
products, white goods, house care products, plastic goods, consumer non-durables, etc.
The FMCG market is highly concentrated in the urban areas as the rise in the income
of the middle-income group is one of the major factors for the growth of the Indian
FMCG market.
The penetration in the rural areas in India is not high as yet and the opportunity of
growth in these areas is huge by means of enhanced penetration in to the rural market
and conducting awareness programs in these areas. The scopes for the growth of the
FMCG industry are high as the per capita consumption of the FMCG products in India
is low in comparison to the other developed countries. The manufacturing of the FMCG

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goods is concentrated in the western and southern belt of the country. There are other
pockets of FMCG manufacturing hubs.
SCOPE OF FMCG INDUSTRY IN INDIA
The FMCG (Fast Moving Consumer Goods) companies have faced tough competition
among themselves over the years which is continuously increasing. This is due to the
increase in per capita income among individuals and also various developments in rural
economy. The FMCG sector has changed its strategies and has opted for a more well-
planned marketing of the products to penetrate both the rural and urban markets. To
execute these tasks, the FMCG companies are hiring more and more people which has
led to an increase in the job prospects in this sector. Thus, FMCG sector is creating
massive employment with good career prospects. Marketing, retail, sales, services and
supply are the key areas which generates maximum career scopes in FMCG Industry in
India.
FMCG sector in the Indian rural market is one of the most booming sectors in Indian
economy. The villages of India account for 12.2% of the world's population. The farm
sector has been one of the significant sectors which boosted the rural economy resulting
in the higher consumption of FMCG products. The consumers in both rural and urban
sectors can afford high-priced branded products nowadays with the high disposable
income. The FMCG sector in India has grown significantly in the year 2007 and this
gave rise to huge prospects in the sector. The rural and urban sectors fared equally well
in the processed food items in the year 2007. The rural market separately performed
well in the personal care, fabric care, and hot beverages while the urban market did well
in home care, personal care, bakery, dairy products, and the like.
COMPETITION IN THE FMCG SECTOR
India's huge population has always been a significant factor for the growth of FMCG
sector in the country. Between 1950 and 1980, the consumption of FMCG products
were relatively low due to the low per capita income. The post-liberalization era in India
has witnessed a massive growth in the selling of products in the domestic market. The
Indian market also imported loads of products from overseas markets which made

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increased the competition between the organized and the unorganized sector.
The easing of the trade barriers encouraged the MNCs to invest in the Indian market to
cater to the needs of the consumers. The living standards rose in the urban sector due to
high disposable income along with the rise in the purchasing power of the rural families
which increased the sales volume of various manufacturers of the FMCG products in
India. The large-scale companies such as HLL, Godrej Consumer, Marico, Henkel,
Reckitt Benckiser and Colgate have targeted the rural consumers and have also
expanded their retail chain in the mid-sized towns and villages. On the contrary to this,
Nestle has always targeted the market of urban India and focuses largely upon the value
added products for the elite class or upper middle class population.
MNCs IN FMCG SECTOR
MNCs in FMCG Sector in India are doing very good business. The major FMCG
companies in India are mostly Multi-National Companies (MNC), such as Nike,
Reebok, Puma, Pepsi Co, L'Oreal, etc. The experts believe that in the future the MNCs
would dominate the FMCG sector India. The FMCG market consists of products such
as personal care products, toiletries products, cosmetics products, house care products,
white goods, etc. The market is expected to witness the emergence of large players.
TOP 10 COMPANIES
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned
by MNCs, and the balance by Indian companies. Fifteen companies own these 62
brands, and 27 of these are owned by Hindustan Unilever.
The top ten India FMCG brands are:
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)

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5. Asian Paints (India)
6. Cadbury India
7. Britannia Industries
8. Dabur India
9. Procter & Gamble Hygiene and Health Care
10.Marico Industries
GROWTH OF FMCG SECTOR IN INDIA
There is stiff Competition in the FMCG sector in India and the competition is expected
to increase in the coming years. FMCG sector in India is most likely to witness more
than 50% growth in the semi-urban and rural areas in India by the year 2010 according
to the reports of the Associated Chambers of Commerce and Industry of India
(Assocham) of July 2005. The sector is estimated to grow by 10% per year and reach a
market size of ` 100,000 crores by 2010 from 48,000 crores in 2005.
The people of both rural and urban regions in India are consuming high volume of fast
moving consumer goods these days due to the higher disposable income. This has led
to a surge in the setting up of a number of FMCG companies in India to meet the rising
demand of the consumers. The rural market has grown significantly over the years. The
FMCG companies which have grown significantly in India in the last few years are
Nirma, HLL, Dabur, ITC, Godrej, Britannia, Coca-Cola, and Pepsi.
RECENT DEVELOPMENTS
 Finance Minister, Mr. P. Chidambaram declared several tax sops for the FMCG
sector in India along with putting due emphasis on the infrastructure developments
in the same.
 The usual growth drivers such as penetration, per capita consumption, population,
and household income were quite strong in 2007 and also the consumption of the
FMCG products has been increased outstandingly in 2007.
 Biscuits worth ₹ 50 per kilogram are fully exempted from excise duty, customs duty

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on food processing machineries were reduced from 7.5% to 5%, excise duties on
food mixes were reduced from 16% to 8%, and taxes were reduced on edible oils.
ITC, Dabur, HUL and Marico were directly benefited from these.
 The consumption of health and personal care products in FMCG sector has increased
in the recent past with rise in disposable income especially among the youth group
in India.

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1.3. COMPANY PROFILE

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1.3.1. COMPANY OVERVIEW
Motilal Oswal Financial Services is a well-diversified financial services group having
businesses in securities, commodities, investment banking and venture capital. With
1300 business locations and more than 3,85,000 customers in over 425 cities, Motilal
Oswal is well suited to handle all your wealth creation and wealth management needs.
The company has in the last year placed 9.48% with two leading private equity investors
- New Vernon Private Equity Limited and Bessemer Venture Partners at post money
company valuation of Rs.1345 corer. (Rs.13.45 billion).
o Motilal Oswal Financial Services Ltd (MOFSL) offers diversified financial
services, including retail broking & distribution, institutional broking, private
Name : Motilal Oswal Financial Services Limited
Type : Financial services
Industry : Finance
Founded : Mumbai, India, 1987
Headquarters : Motilal Oswal Tower, Prabhadevi, Mumbai
Key people : Motilal Oswal, Raamdeo Agrawal
Services : Wealth Management, Retail Broking & Distribution, : : : : : : : :
: Commodity Broking, Asset Management, Institutional Broking,
: Private Equity & Investment Banking Services.
Parent : Motilal Oswal Financial Services Ltd
Subsidiaries : Motilal Oswal Securities Ltd,
Motilal Oswal Investment Services,
Motilal Oswal Investment Advisors Pvt. Ltd,
Motilal Oswal Private Equity Advisors Pvt. Ltd,
Motilal Oswal Asset Management Co. Ltd,
Aspire Home Finance Corporation Ltd.
Website : www.motilaloswal.com

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equity, wealth management, asset management, investment banking and housing
finance.
o Enabling wealth creation for all its customers, such as institutional clients,
HNWIs and retail customers.
o MOFS has more than 800,000 total customers, which includes over 700,000
retail clients and over 500 institutions.
o Focused on ‘Solid Research Solid Advice’ and ‘Knowledge First’ mantras to
project itself as a research-driven organization.
o Pan-India network is spread over 1,700 locations across 500 cities, including
franchisee outlets and own branches.
o Shares listed on the Bombay Stock Exchange and National Stock Exchange in
Mumbai.
GROUP STRUCTURE
GROWTH OF THE COMPANY
In March 2006, AQ Research, a firm that analyses the accuracy of a broker’s research
call, declared Motilal Oswal Securities the best research house for Indian stocks.
Research is the solid foundation on which Motilal Oswal Securities advice is based.
MOTILAL OSWAL FINANCIAL SERVICES LTD.
MOTILAL OSWAL SECURITIES LTD.
Institutional Equities Broking & Distribution
MOTILAL OSWAL INVESTMENT ADVISORS PVT. LTD.
Investment Banking
MOPE INVESTMENT ADVISORS PVT LTD.
Private Equity Real Estate
MOTILAL OSWAL ASSET MANAGEMENT CO. LTD.
PMS Mutual Funds Offshore Funds
MOTILAL OSWAL WEALTH MANAGEMENT LTD.
Financial Strategy Wealth Management
ASPIRE HOME FINANCE CORPORATION LTD.
Housing Finance
MOTILAL OSWAL COMMODITIES BROKER PRIVATE LTD.
Commodity Broking

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Almost 10% of revenue is invested on equity research and we hire and train the best
resources to become advisors. At present we have 24 equity analysts researching over
26 sectors. From a fundamental, technical and derivatives research perspective; Motilal
Oswal's research reports have received wide coverage in the media (over a 1000
mentions last year). Motilal Oswal Securities has witnessed rapid organic growth due
to favorable market conditions as well as efforts put in by the company itself. FY05 and
FY06 saw the company grow inorganically through acquisition of three significant
regional broking firms from Karnataka, Kerala and UP. Over a period of time many
more regional broking firms may be acquired to gain solid footing in various regions of
India. The company has also established a base in the UAE to address the needs of the
overseas audience.
Motilal Oswal Securities Limited (MOST) has established itself as the Most
Independent Research - Local Brokerage (Asia Money Brokers’ Poll 2006). Its
Institutional Equities Division combines the efforts of our Research and Sales &
Trading departments to best serve clients' needs. It believes it is its unflinching
commitment to providing superior client service that makes us stand out. They have a
dedicated research team, which is engaged in analyzing the Indian economy and
corporate sectors to identify equity investment ideas. They staunchly practice the value-
investing philosophy and advise investors to take a long-term view of equity
investments. Consistent delivery of high quality advice on individual stocks, sector
trends and investment strategy has established us as a reliable research unit amongst
leading Indian as well as international investors. Our sales & trading team comprising
top equity professionals, translates the research findings into actionable advice for
clients, based on their specific needs. Each of our sales personnel has significant
experience in equity research. Sophisticated computerized tools are used to understand
client investment profile and objectives, which ensures proactive and timely service.
COMPANY CORE PURPOSE
To be a well-respected and preferred global financial services organization enabling
wealth creation for all our customers.

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VALUES FOLLOWING
 Integrity
A company honoring commitment with highest ethical and business practices.
 Team Work
Attaining goals collectively and collaboratively.
 Meritocracy
Performance gets differentiated, recognized and rewarded in an apolitical
environment.
 Passion & Attitude
High energy and self-motivated with a “Do It” attitude and entrepreneurial spirit.
 Excellence in Execution
Time bound results within the framework of the company’s value system.
PRODUCT/SOURCE OF INCOME
Product Name Sales
Qty.
Sales Value
(In million)
% of STO
Interest 0.00 657.44 51.08
Dividend 0.00 437.44 34.01
Profit on Sale of Non-
Current Investment
0.00 106.69 8.29
Rent Income 0.00 81.90 6.36
Other Operating Revenue 0.00 3.35 0.26

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MANAGEMENT TEAM
_
CORPORATE GOVERNANCE
 BOARD & COMMITTEES
MOFSL is committed to ensuring compliance with the best practices in corporate
governance.
● Composition of MOFSL’s Board of Directors:
o The Board currently consists of 7 Directors with more than 50% composition
of Independent Directors (4 Independent Directors and 3 Non Independent
Motilal Oswal
(Chairman & MD)
Murli
Krishnan
Iyer
(Company
Secretary)
Raamdeo
Agarawal
(Joint
Managing
Director)
Navin
Agarwal
(Non-Executive
Non-
Independent
Director)
Sharda
Agarwal
(Non-
Executive
Independent
Director)
Praveen
Tripathi
(Non-
Executive
Independent
Director)
Vivek
Paranjpe
(Non-
Executive
Independent
Director)

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Directors)
● MOFSL has some major Board level Committees:
o Audit Committee
o Stakeholders Relationship Committee
o Nomination and Remuneration/Compensation Committee
o Corporate Social Responsibility Committee;
o Risk Management Committee
o Asset Liability Management Committee
o ESOP Committee
o Debenture Committee
 INDEPENDENT DIRECTORS
o Mr Balkumar Agarwal is a retired IAS officer (1967 batch). He has served as
Additional Chief Secretary, Secretary (Housing), Secretary (Transport), and
Secretary (Industries) to the Government of Maharashtra, and as the MD at
Maharashtra State Warehousing Corp, Maharashtra State Financial Corp etc.
o Mr Praveen Tripathi is the CEO of Magic9 Media & Consumer Knowledge Pvt
Ltd. He is the Chairman of the National Consumer Classification System
Committee and has also worked with Pidilite, Hansa Consulting, Zenithmedia,
Starcom/Leo Burnett etc.
o Mr Vivek Paranjpe is a consultant in HR and strategic management with
companies like Reliance Industries, Blackstone etc. Prior to this, he was the
Director, HR Operations at HP Singapore, and has also worked with Hotel Corp,
Johnson & Johnson, and Hindustan Lever etc.
o Ms Sharda Agarwal co-founded a strategy marketing consulting firm in 2005
where she consulted 100+ companies in ~175 assignments. She also set up a
consulting oriented market research firm ‘Market Gate Dimensions’ in 2011.
Prior to this, she worked with Johnson and Coca Cola.

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1.3.2. SCRIP PROFILE

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1.3.2.1. HINDUSTAN UNILIVER LIMITED (HUL)
Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in
Mumbai, Maharashtra. It is owned by Anglo-Dutch company Unilever which owns a
67% controlling share in HUL as of March 2015 and is the holding company of HUL.
HUL's products include foods, beverages, cleaning agents, personal care products and
water purifiers.
HUL was established in 1933 as Lever Brothers and, in 1956, became known as
Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India
and employs over 16,000 workers, whilst also indirectly helping to facilitate the
employment of over 65,000 people. The company was renamed in June 2007 as
"Hindustan Unilever Limited”. Hindustan Unilever's distribution covers over 2 million
retail outlets across India directly and its products are available in over 6.4 million
outlets in the country. As per Nielsen market research data, two out of three Indians use
HUL products.
PRODUCTS
 Food
COMPANY OVERVIEW
Type : Public
Traded as : BSE: 500696 BSE SENSEX Constituent
Industry : Consumer goods
Founded : 1932
Headquarters : Mumbai, Maharashtra, India
Key people : Harish Manwani (Chairman), Sanjiv Mehta (CEO and MD)
Products : Foods, beverages, cleaning agents, personal care products
and Water purifiers.
Revenue : ₹ 30,170 crores (2014-15)
Net income : ₹ 4,315 crores (2014-15)
Number of employees : 18,000 (2014)
Parent : Unilever Plc (67%)
Website : www.hul.co.in

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 Homecare
 Personal Care
 Water Purifier
MAJOR BRANDS
Lux Surf Excel Clinic Plus Rin
Close up Pond's Pepsodent Fair & Lovely
Dove Sunsilk Vim Wheel
Vaseline Pears Lakme Lifebuoy
1.3.2.2. ITC LIMITED
ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal.
Its diversified business includes five segments: Fast Moving Consumer
Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information
Technology. Established in 1910 as the Imperial Tobacco Company of India Limited,
COMPANY OVERVIEW
Type : Public
Traded as : BSE: 500875 NSE: ITC BSE
SENSEX Constituent CNX Nifty Constituent
Industry : Conglomerate
Predecessor : W.D. & H.O. Wills
Founded : August 24, 1910 (as Imperial Tobacco Company of India)
Headquarters : Kolkata, West Bengal, India
Key people : Y C Deveshwar, (Chairman)
Products : Tobacco, hotels, paperboards &specialtypapers,packaging,
agri- business, packaged foods &confectionery, IT, branded
a apparels, personal care, stationery, safety matches and other
F FMCG proudcts.
Revenue : ₹ 51,932 Crores (US$ 8.31 billion) (2013-14)
Operating income : ₹ 13,051.89 Crores (US$ 2.11 billion) (2013-14)
Net income : ₹ 8,990.62 Crores (US$ 1.45 billion) (2013-14)
Total assets : ₹ 39,929 Crores (US$ 6.47 billion) (Mar 2014)
Total equity : ₹ 26,262.02 Crores (US$ 4.27 billion) (Mar 2014)
Number of employees : 25,959 (Mar 2013)
Divisions : ITC Infotech, Surya Nepal Pvt. Ltd.
Website : www.itcportal.com

0
The company was renamed as the Indian Tobacco Company Limited in 1970 and further
to I.T.C. Limited in 1974. The periods in the name were removed in September 2001
for the company to be renamed as ITC Ltd. The company completed 100 years in 2010
and as of 2012-13, had an annual turnover of US$8.31 billion and a market
capitalization of US$45 billion. It employs over 25,000 people at more than 60
locations across India and is part of Forbes 2000 list.
PRODUCTS
 Cigarettes
 Food
 Lifestyle apparel
 Personal care
 Stationary
 Safety matches and Agarbattis
 Hotels
 Paperboard
 Packaging and Printing
 Information Technology
MAJOR BRANDS
Ashirvad Yippee!
John Players Mint-o
Will Lifestyle Classmates
Vivel Superia
B natural Fiama Di Wills
Sufeast Bingo!
Gum-o Gold Flake Kings
Candyman Aim
Mangaldeep Engage
WelcomHotel Wills Navy Cut

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1.3.2.3. MARICO LIMITED
Marico is an Indian consumer goods company providing consumer products and
services in the areas of Health and Beauty based out of Mumbai. During 2009–10, the
company generated a turnover of about ₹ 2,660 crore (USD 600 million). Marico's own
manufacturing facili ties are located at Goa, Kanjikode, Jalgaon, Pondicherry,
Dehradun, Baddi, Paonta Sahib, Perundurai and Daman. In Bangladesh, Marico
operates through Marico Bangladesh Limited, a wholly owned subsi diary. Its
manufacturing facility is located at Shirirchala, near Gazipur.
PRODUCTS
 Edible Oils
 Hair Oils
 Skin Care
 Fabric Care
MAJOR BRANDS
Parachute Saffola Hair & Care Kaya Skin Clinic
Livon Eclipse X-men Hercules
Revive Caivil Code 78 Manjal
COMPANY OVERVIEW
Type : Public company (BSE: 531642)
Industry : Consumer goods
Founded : 1987
Headquarters : Santacruz, Mumbai, India
Key people : Saugata Gupta[1]
Products : Edible Oil, Hair Oils, Skin Care, Fabric Care, etc.
Revenue : ₹ 5733.3 crore(US$870 million)
Number of employees : 3230 (2015)
Website : www.marico.com

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1.4. RESEARCH PROBLEM

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1.4. RESEARCH PROBLEM
Any person who invests his hard earned money in shares and security must possess
adequate knowledge about securities market and securities price. Investors should be
very careful and should exercise his skills, knowledge and experience for choosing
investment opportunity. Otherwise the whole of the investment may go waste. They
must identify the underpriced and overpriced securities. The mispricing of securities
provides an opportunity to the investor to acquire the share or dispose of the share
profitably. Therefore the study of the securities market and reasons for the movement
of securities is essential for any investors who invest his money in shares. In this
context, the present study becomes highly essential on the following grounds.
 Is the investment in listed FMCG companies is more rewarding or not?
 Are FMCGs shares floating steadily?

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1.5. OBJECTIVES OF THE STUDY

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1.5. OBJECTIVES OF THE STUDY
 Primary Objectives
To conduct Fundamental analysis for stock market listed FMCG companies and
SWOT analysis for the FMCG industry.
 Secondary Objectives
1. To select the best performing company among the selected three companies.
2. To know about the FMCG sector in India.
3. To check whether fundamental analysis alone can evaluate investment
opportunities in the share.
4. To forecast the future performance of the selected companies.
5. To recognize the suitability of the shares for investment in long term.

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1.6. RESEARCH METHODOLOGY

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1.6. RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may
understood as a science of studying how research is done scientifically. It is the
description, explanation and justification of various methods of conducting research. In
it we understand the various steps that are generally adopted by a researcher in studying
his research problem along with the logic behind them.
1.6.1. SAMPLE SELECTION CRITERIA
The FMCG companies which satisfied the following criteria have been selected. The
criteria are:
o FMCG companies listed in security market.
o Availability of data for a period of three years.
o Accounting year must be from April to March.
Companies that satisfy the above conditions are:
 Hindustan Unilever Limited
 ITC Limited
 Marico Limited
1.6.2. SOURCE OF DATA
The study is based on the secondary data. The audited financial statements of the
companies are the main source of data. The major data sources used in this study are:
o Annual Reports of Companies
o Websites
o Journals
o Magazines
o Reference Books
1.6.3. PERIOD OF STUDY
This study is based on analytical nature and covers period of three years from 2012-13

0
to 2014-15.
1.6.4. TOOLS USED FOR ANALYSIS
1. RATIOS
a) Operating Profit Margin (OPM)
The operating profit margin indicates the profit of the company after depreciation, but
before interest and taxes are deducted from the earnings.
Operating profit margin = Operating profit / Revenue
= EBIT / Revenue x 100
b) Net Profit Margin (NPM)
Net profit margin measures the amount of profits available to shareholders after
depreciation, interest and taxes are deducted from the earnings.
Net profit margin = Net profit / Revenue x 100
c) Earnings per Share (EPS)
This ratio indicates the profits available to equity share holders per share, this helps
to determine the market price of equity shares.
Earnings per Share = Profit after Tax / No. of equity shares.
d) Dividend per Share (DPS)
The amount of profits distributed to shareholders per share is known as DPS and may
be calculated as follows:
Dividend per Share = Amount declared as dividend / No. of equity shares.
e) Dividend Payout Ratio (DP Ratio)
The DP ratio is the ratio between the DPS and EPS of the firm, i.e., it refers to the
proportion of the EPS which has been distributed by the company as dividends.
Dividend payout ratio may be calculated as follows:
Dividend Payout Ratio = DPS / EPS x 100

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f) Price to Earnings Ratio (PE Ratio)
The PE Ratio indicates the expectations of the equity investors about the earnings of the
firm. The PE ratio is one of the most widely used measures of financial analysis in
practice and is calculated as follows.
Price to Earnings ratio = Market Price per Share /Earnings per Share.
g) Return on Equity (RoE)
The RoE examines profitability from the perspective of the equity investors by relating
profits available for the equity share holders with the book value of the equity
investment.
Return on Equity = Net Income/Shareholder's fund
h) Earning Yield Ratio
The yield is defined as the rate of return on the amount invested. With the reference to
equity shares, the yield may be defined as the rate of return on the market piece of equity
shares.
Earnings Yield Ratio = Earnings per share / Market price per share.
i) Price to Book Value Ratio
The book value of a share provides a floor below which the market price of a share is
not expected to fall. Shares which have lower PB Ratio may be considered as a ‘safer’
investment and vice versa.
Price to Book Ratio = Market price per share/Book value per share.
2. INTRINSIC VALUE
The actual value of a company or an asset based on an underlying perception of its true
value including all aspects of business in terms of both tangible and intangible factors.
The value may or may not be same as the current market value. The true economic
worth of the share is its intrinsic value. The fundamental analyst finds out intrinsic value
of a share by using the formula:
Intrinsic Value = Earnings per share x Price to Earnings ratio.

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3. SWOT ANALYSIS
SWOT Analysis is the analysis of strength, weakness, opportunity, and threats of
the organization. The company’s success is mainly depending on the accurate
managing of SWOT. Strength is to be maximized, weakness is to be reduced and
should concentrated on opportunities and avoid threats.
1.6.5. TOOLS USED FOR PRESENTATION
1. Bar diagram
2. Tabular presentation

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1.7. SCOPE OF THE STUDY

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1.7. SCOPE OF THE STUDY
This study provides a precise presentation of data and guidelines that will help a fresh
investor as well as a venture investor to know vital aspects of investing. This study helps
to the investors to choose a safe investment and to identify the growth opportunities in
the future. FMCG industry is one of the major and important industries in the world.
Large numbers of foreign investors are coming and investing in Indian FMCG sector
due to its large potential growth in future. The scope of the study is limited to analyzing
the financial statements and periodical reports published by the company and the
information from the journals and websites.

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1.8. LIMITATIONS OF THE STUDY

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1.8. LIMITATIONS OF THE STUDY
o The study is confined only to the listed FMCG companies
o External factors may adversely affect the industry as well as its share price. E.g.
o Government policies, competition, tax imposition, global market, FDI/FII etc.
Hence, the movement of stock price is not 100 per cent predictable.
o The present study uses ratios as an important tool of analysis which itself has a
number of limitations on its applicability.

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CHAPTER II
REVIEW OF LITERATURE

0
2.1. FUNDAMENTAL ANALYSIS
Fundamental analysis is the study of economic, industry, and company conditions in an
effort to determine the value of a company’s share. Fundamental analysis typically
focuses on key statistics in a company’s financial statements to determine if the stock
price is correctly valued. After determining the condition and outlook of the economy,
the industry, and the company, the fundamental analyst determines if the company’s
stock is overvalued, undervalued or correctly valued.
Fundamental analysis covers various financial and non-financial aspects such as
evaluation of the economy and industry scenario, company management and company
financial position and so on.
FUNDAMENTAL ANALAYSIS
ECONOMY
ANALYSYIS
COMPANAY
ANALYSYIS
INDUSTRY
ANALYSYIS
GNP
GDP
INFLATION RATE
INTEREST RATE
EXCHANGE RATE
FOREX RESERVES
GOVT. RECEIPTS
GOVT. EXPENDITURE
GROWTH RATE
AND SWOT
ANALYSIS
GPM, NPM, OPM
EPS, DPS, DP RATIO,
PE RATIO, ROE
EARNINGS YIELD -
RATIO
DIVIDEND YIELD -
RATIO
PRICE TO BOOK-
VALUE RATIO
INTRINSIC VALUE

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Three phase of the fundamental analysis are:
o Understanding of the Macro Economic environment and developments
(Economic analysis)
o Analyzing the prospectus of the industry to which the firm belongs
(Industry analysis)
o Assessing the performance of the company (Company analysis)
2.1.1. ECONOMY ANALYASIS
Economic analysis deals with the analysis of operating in the overall economy. In
security analysis, the expected course of the economy must be inquired into because
overall economic conditions and economic activities affect corporate profits and
investors’ expectations and thereby affect the security prices in decisions. Investors
consider those variables of the economy, which affect the performance of the company
in which they tend to invest.
The economic variables used in this study such are:
 Gross National Product (GNP)
 Gross Domestic Product (GDP)
 Inflation Rates
 Interest Rates
 Foreign Exchange Reserves
 Government Receipts and Expenditure
2.1.2. INDUSTRY ANALYSIS
An industry described as a homogeneous group of companies. It may be defined as a
group of firms producing reasonably similar products that serve the same need of a
common set of buyers. The profitability of an industry depends upon its stage of growth.
These externalities depend on the availabilities of inputs power and interrelations
between the economy and industry. In India, companies like HUL, ITC, Marico have
been a dominant force in the FMCG sector well supported by relatively less competition
and high entry barriers (import duty was high). The industry analysis moves from
macroeconomic analysis to microeconomic analysis. The process normally includes
conducting thorough study of its three sub-heads, namely structural framework,

0
industry lifecycle and competitive environment.
In this study the growth of consumer goods industry is analyzed by comparing sales
volume, expenditure, profit and income of the industry. A SWOT analysis of the FMCG
industry also done in this study.
2.1.3. COMPANY ANALYSIS
The investor should identify the leading competitive companies in each industry since
this is where good investment values will be found. Company analysis attempts to study
the various factors affecting and indicating the performance of a company, such as,
competitive position of the company, quality of management, technology, product
analysis, brand image and market share, marketing strategy, etc.
Company financial analysis is the process of identifying the financial strengths and
weaknesses of a company by properly establishing the relationship between the items
of balance sheet, profit and loss account and other financial statements. The most
powerful tools of financial analysis is ratio analysis. This study used the different ratios
and intrinsic valuation model.
2.2. AUTHORS REVIEW
A brief review of literature would help the researcher, reader and other research scholars
in gaining an insight into the studies, which were made in areas related to the subject of
this study. The findings of some of the studies are briefly summarized as follows.
1. SANDIP MUKHERJI, MANJEET, AND KIM (1997)
Fundamental Analysis of Korean Stock Returns” in their article examined about the
relation between stock return and fundamental variables in Korean firms annual stock
returns during the period of 1982-83. The study found that stock returns are positively
related to book-market ratio, sales-price ratio and debt-equity ratio. It is also found that
return is negatively related to firm size and not significantly related to earnings price
ratio. They suggested that book-market and sales-price ratios are more efficient

0
indicators than the earnings-price and the debt-equity ratio.
2. JIANG XIA (2000)
“Fundamental Analysis of Price on Chinese Steel Products” in his paper considered five
fundamental factors such as price index of steel product, Gross National Product,
exchange rates, interest rates, imports and exports are influencing over the price of steel
products. A hedonic function model was applied which reflects the relation between
prices of varieties of heterogeneous goods and empirical tests applied by using Chinese
annual data for the year 1978. Study found that the above said variables are influencing
at 62 per cent over the steel price. The price index and Gross Domestic Product have
positive significant relation which depicts that higher the price index and Gross
Domestic Product, higher the steel price. The exchange rate have negative impact over
the steel price, the interest rate does not have influence over the steel price and finally
it is found that import and export influence the steel price of the product.
3. MEHMET SARAC (2007)
“Does Fundamental Analysis Matter for Foreign Investors? An Empirical Analysis of
Foreign Investment in the Istanbul Stock Exchange” The paper analyzed about the buy
and sell decisions of foreign investors are related to financial indicators of the firms
listed on the Istanbul Stock Exchange. Based on the monthly data from January 2000 to
April 2006, the study found that the operating leverage, profitability and solvency are
the most important factors while investing in the manufacturing stocks. Foreign
investors consider solvency is a major factor whereas, local investors considers the
profitability of a firm.
4. JEFFERY ABARBANELL AND BRAIN BUSHEE (1977)
“Fundamental Analysis, Future Earnings and Stock Prices”, in their study examined the
relationship between accounting based fundamental signals and future earnings of
security prices. They applied multiple regression analysis to analyze the data. The study
found that investors are not completely relying on the information given by the analyst.
They also found that the variables such as Gross Domestic Product, inflation, firm

0
specific variables are prior earnings, expected earnings growth, relation between
fundamental signal and future earnings, revisions and forecast errors are most
influencing factors in fundamental analysis.
5. VIYYANNA RAO AND NIRMALA DAITA (2012)
“Fundamental Factors Influencing Investments in Mutual Funds the EIC Approach: A
Case Study of RCAMI” the study focused on fundamental analysis of mutual funds in
India. The macro economic variables taken for this study, viz., RBI Bank Rate,
Domestic savings, Gross Domestic Capital Formation, Money Supply, Gross National
Product, Wholesale Price Index, and Forex Reserves. Descriptive Statistics,
Correlation, Regression, Augmented Dickey Fuller test and Granger test has been
applied. The economic analysis results found that all the variables were positively
correlated with each other except bank rate and Wholesale price index. The industry
analysis shows that Reliance, HDFC, ICICI Prudential, UTI and Birla Sun Life stood
in the top five positions and its contribution as 57.02 per cent of the total assets. The
remaining 33 players shared the rest of the 42.98 per cent of the industry. The company
analysis results reveal that price earnings ratio and price to book ratio, fund size, market
capitalization and Net assets value were found to be having a significant influence on
the return of the funds.

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CHAPTER III
DATA ANALYSIS

0
3.1. ECONOMY ANALYSIS

A
fundamental
Analysis
on
Three
FMCG
Companies
School
of
Management
Studies
Vatakara,
University
of
Calicut
P
a
g
e
|
47
0
Govt.
Expenditures
(₹ Cr)
2332765.74
2647312.19
3152934.00
Govt.
Receipts
(₹ Cr)
2030378.25
2324512.97
2314849.00
Forex
Reserve
($ Million)
295503.6
319997.5
352365.7
Exchange
Rate
(₹ / $)
61.83
62.83
66.16
Interest
Rates
(%)
7.25
8.00
6.75
Inflation
(%)
9.3
10.9
6.4
GNP
(%)
4.8
6.8
7.4
GDP
(%)
5.1
6.9
7.3
Year
2013
2014
2015
Table 1
Economy Analysis
Source: rbi.org.in, data.worldbank.org, and other internet sources

0
INTERPRETATION
The Table 1 represents the major economic indicators of our country which helps to the
investors to make economic analysis towards investments. Gross Domestic Product
indicates the rate of growth of the economy. The GDP of India during the period of
2013 to 2015 is increasing, which means the economy is growing. The highest growth
rate of GDP is more favorable to the stock market.
Gross National Product represents the aggregate value of goods and a service produced
in a country which shows an increasing trend at the growth rate of 4.8% in 2013, 6.8%
in 2014 and 7.4% in 2015, it represents the economic condition of a country which is
going upward.
During the year 2010 inflation rate shows as 10.9 per cent which was increased due to
the shortfall of domestic production vis-à-vis demand and hardening of international
prices, prices of primary commodities, especially rise in prices of food products.
However, in 2015 the inflation rate is reduced to 6.4 per cent.
The Interest rate is increased which helps to encourage the saving habit of an individual.
Interest rates on deposits rate was highest in 2014 among the study period, it was 8 per
cent. Interest rate suddenly downed to 6.75 in 2015.
The exchange rate indicates the stability of economic growth of a country. The
exchange rate shows fluctuating trend from 61.83 to 66.16. It’s clearly shows that the
value of rupee is decreasing when comparing to the US dollar. Foreign exchange reserve
helps to preserve currency stability and reduce economic distresses. Foreign exchange
reserve shows high trend during the period of 2013-15.
The government expenditure exceeds over the receipts, the receipts and there is a small
difference in between these two; in future it can be controllable due to effective money
to develop our infrastructural activities economic policy. The government spent more
because; once the infrastructure is developed it leads to potential economic growth.

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3.2. INDUSTRY ANALYSIS

0
GROWTH OF FMCG INDUSTRY IN INDIA
India’s FMCG sector reported steady sales Compound Annual Growth Rate of 11.2 per
cent over the financial year 2000-11 on the back of strong annual volume growth of 8.5
per cent. Growth is being driven by increasing consumption led by a rise in incomes,
changing lifestyles and favorable demographics. The industry is poised to grow at
Compound Annual Growth Rate between 10 to 12 per cent annually. The annual profit
of FMCG sector $14.74 billion. Total market size in excess of US $30 billion in the
year 2011. The market growth rate of FMCG industry in rural and urban areas is 40 per
cent and 25 per cent, respectively. Average Indian spending on groceries and personal
care is 48 per cent. (Groceries 40 per cent and personal care 8 per cent). According to
FICCI-Techno-park report, the implementation of the proposed GST and opening of
FDI is expected to fuel growth of industry size to $47 billion (₹2,25,000 Crore) by 2013
and $95 billion (₹4,56,000 Crore) by 201814. The growth of the FMCG sector is
presented in the Table 2 represents the total income, expenditure, sales and Profit earned
after tax. Sales and Profit indicate the growth of the sector. FMCG industry shows that
total income and sales has increased over the years except during the last year. The
profit after tax is also showing an increasing trend which represents the industry has
attained maximum profit during the study period. Hence, the FMCG sector has high
potential growth; the investors have also attained a high rate of return on their
investments.
SWOT ANALYSIS OF FMCG INDUSTRY
 Strengths
1. Lower operational costs.
2. Existence of recognized distribution networks in both urban and rural areas.
3. Existence of eminent brands in FMCG sector.
4. Favorable Government policy and Foreign.
5. Direct Investment is permitted.
 Weaknesses
1. Lower scope of investing in technology of small scale sectors.

0
2. Low export levels.
3. Illegal duplicate labels of the established brands of FMCG product reduced the
scope in rural and semi-urban market.
 Opportunities
1. Untapped rural market.
2. Increasing income levels which lead to increase in purchasing power of
consumers.
3. Huge domestic market - a population of over one billion.
4. Export potential.
5. High consumer goods spending.
6. Lower price and smaller packs which increases the trading volume.
 Threats
1. Removal of import restrictions resulting in replacing of domestic brands.
2. Slowdown in rural demand and mostly depends upon monsoon.
3. Tax and regulatory structure.

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3.3. COMPANY ANALYSIS

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Table 2
OPERATING PROFIT MARGIN (OPM) OF THREE COMPANIES
Source: Profit & Loss statements of companies
COMPANY 2013 2014 2015
HUL Ltd. 18.8 17.5 19.6
ITC Ltd. 34.6 36.8 36.9
MARICO Ltd. 11.9 14.6 14.2
18.8
17.5
19.6
34.6
36.8 36.9
11.9
14.6 14.2
0
5
10
15
20
25
30
35
40
2013 2014 2015
Chart 1
OPERATING PROFIT MARGIN OF THREE COMPANIES
HUL Ltd ITC Ltd. Marico Ltd.
Operating profit margin = EBIT / Revenue x 100

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INTERPRETATION
 HUL Ltd.
The profit of the Hindustan Unilever Ltd. after depreciation, but before the
deduction of interest and tax is keeping a steady position between the ratio of
15.0 and 20.0. It’s at the highest position in 2015. It shows that the company
have a tendency of profitability increment or to have the ability to keep a
balanced state.
 ITC Ltd.
The above table and graphical presentation shows that the operating profit
margin of the ITC Ltd. is very higher when comparing with other two companies.
It is double than them in every year. In the period of study, company keeping its
operating profit ratio above 30.00. In 2013 it is 34.6, in following year it’s
increasing and reached at 36.9 in 2015.
 Marico Ltd.
When analyzing the operating profit margin of the Marico Ltd. it shows that the
company reached at its highest operating profit in 2014. In 2015 it gained 14.2
of operating profit. It reveals that the company is on its way to achieve the
shareholders objectives.

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Table 3
NET PROFIT MARGIN (NPM) OF THREE COMPANIES
COMPANY 2013 2014 2015
HUL Ltd. 14.37 13.50 13.73
ITC Ltd. 24.05 25.58 25.25
MARICO Ltd. 8.54 10.23 9.90
14.37
13.5 13.73
24.05
25.58 25.25
8.54
10.23 9.9
0
5
10
15
20
25
30
2013 2014 2015
Chart 2
NET PROFIT MARGIN OF THREE COMPANIES
Net profit margin = Net profit / Revenue x 100

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INTERPRETATION
 HUL Ltd.
The net profit margin of the Hindustan Unilever is remaining at constant position
in the given period. The company keeping a good net profit margin in the given
years. However it shows a slight decrease in 2014 from 14.37 to 13.5.
 ITC Ltd.
As the operating profit margin, also the net profit margin of the ITC Ltd. is
highest among the studying companies. In 2013 it was 24.05. In the following
years it’s keeping a balanced state around 25.00. It shows that the management’s
profit earning efficiency is very higher.
 Marico Ltd.
In the case of Marico Ltd. the net profit margin indicates a fluctuating trend. The
company has a sharp decline in the last year when compared to the previous year.

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Table 4
EARNING PER SHARE - EPS (BASIC) OF THREE COMPANIES
COMPANY 2013 2014 2015
HUL Ltd. 17.56 17.88 19.95
ITC Ltd. 9.45 11.09 12.05
MARICO Ltd. 6.18 7.53 8.89
17.56 17.88
19.95
9.45
11.09
12.05
6.18
7.53
8.89
0
5
10
15
20
25
2013 2014 2015
Chart 3
EARNING PER SHARE - EPS (BASIC) OF THREE
COMPANIES
Earnings per Share = Profit after Tax / No. of equity

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INTERPRETATION
 HUL Ltd.
In the shareholders point of view the profitability of the company is shows an
increasing trend. Basic earnings per share of the Hindustan Unilever is increased
from 17.56 to 19.95.
 ITC Ltd.
Basic earnings per share of the ITC Ltd. also increasing in year to year. If the
EPS of a company is higher the market value of the share will also be higher in
the stock market. The increasing trend of the EPS of ITC Ltd. is good to rise the
demand for the share in the stock market.
 Marico Ltd.
When compared to the Earnings per share of the other companies it had a low
EPS in the period. However, Marico also shows the increasing trend in their
earning per share. It will be a hope to their shareholders.

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Table 5
EARNING PER SHARE - EPS (DILUTED) OF THREE COMPANIES
COMPANY 2013 2014 2015
HUL Ltd. 17.55 17.87 19.94
ITC Ltd. 9.33 10.96 11.93
MARICO Ltd. 6.17 7.53 8.89
17.55 17.87
19.94
9.33
10.96
11.93
6.17
7.53
8.89
0
5
10
15
20
25
2013 2014 2015
Chart 4
EARNING PER SHARE - EPS (DILUTED) OF THREE
COMPANIES
Earnings per Share = Profit after Tax / No. of equity shares + Other
Convertible Instruments

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INTERPRETATION
 HUL Ltd.
When all convertible securities are exercised there is a slight change can be found
in the earnings per share of the Hindustan Unilever Ltd. It’s only the 0.01in each
year.
 ITC Ltd.
Diluted Earnings per share of the ITC Ltd. showing that the company have more
convertible securities. There is a greater change when compared to other
companies. The greater fluctuations in the basic and diluted EPS hint that the
convertible securities will be more.
 Marico Ltd.
There is no fluctuations in the basic earnings per share of the Marico Ltd. in the
recent two years. That’s means there was no convertible securities in the firm
during the years. In the first year Marico had a slight different in the basic and
diluted earnings per share of the company.

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Table 6
DIVIDEND PER SHARE (DPS) OF THREE COMPANIES
Source: Annual Reports, http://moneycontrol.com
#
including special dividends
COMPANY 2013 2014 2015
HUL Ltd. 18.50#
13.00 15.00
ITC Ltd. 5.25 6.00 6.25
MARICO Ltd. 1.00 4.00 2.50
18.5
13
15
5.25
6 6.25
1
4
2.5
0
2
4
6
8
10
12
14
16
18
20
2013 2014 2015
Chart 5
DIVIDEND PER SHARE (DPS) OF THREE COMPANIES
Dividend per Share = Amount declared as dividend / No. of equity shares.

0
INTERPRETATION
 HUL Ltd.
The dividend paid to the equity shareholders of the Hindustan Unilever is very
high when compared to other companies. It was at peak in 2013. In the 2014 it
shows a tremendous decline in the dividend paid to the shareholders.
 ITC Ltd.
The above table and graph shows that the dividend per share of the ITC Ltd. is
little increasing in all the years. When considering the all the three years we can
say that the company is keeping a stable rate. Which is beneficial to the investors
of the company.
 Marico Ltd.
In 2013 DPS of the company was very low. In the following years it shows a
rapid increase in the dividend paid to the shareholders. But in the 2015 it again
fallen.

0
Table 7
DIVIDEND PAYOUT RATIO OF THREE COMPANIES
Source: Profit & Loss statements of companies, Annual Reports
COMPANY 2013 2014 2015
HUL Ltd. 105.71 72.71 75.19
ITC Ltd. 55.55 54.10 51.87
MARICO Ltd. 16.18 53.12 28.12
105.71
72.71 75.19
55.55 54.1 51.87
16.18
53.12
28.12
0
20
40
60
80
100
120
2013 2014 2015
Chart 6
DIVIDEND PAYOUT RATIO OF THREE COMPANIES
Dividend Payout Ratio = DPS / EPS x 100

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INTERPRETATION
 HUL Ltd.
In the year 2013 Hindustan Unilever Ltd. distributed greater proportion of
earnings per share of the company to its investors. Above table and graph shows
that after the 2013 it is rapidly declined. It’s not a good for the investors of the
company.
 ITC Ltd.
ITC Ltd. was kept a stability in the distribution of dividend to its shareholders
during this period. A stable DPR is favorable to the short term investors.
 Marico Ltd.
DPR of the Marico indicates a greater fluctuations in the amount dividend
distributed to the shareholders during this period. This fluctuations is not good
for the investors.

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Table 8
RETURN ON EQUITY (RoE) OF THREE COMPANIES
Source: Profit & Loss statements of companies, Balance Sheet of Companies
COMPANY 2013 2014 2015
HUL Ltd. 1.43 1.18 1.16
ITC Ltd. 0.33 0.33 0.31
MARICO Ltd. 0.20 0.36 0.31
1.43
1.18 1.16
0.33 0.33 0.31
0.2
0.36
0.31
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2013 2014 2015
Chart 7
RETURN ON EQUITY (RoI) OF THREE COMPANIES
Return on Equity = Net Income/Shareholders fund

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INTERPRETATION
 HUL Ltd.
From the perspective of equity shareholders HUL is more favorable to them.
Because, the company have a higher return on equity in this period. In the year
2014 it was slightly changed. However it kept a stability in the following years.
 ITC Ltd.
A stable RoE is good for the shareholders. The ITC Ltd. offer a stable return on
equity in these years. But it slightly declined in the last year.
 Marico Ltd.
The return on equity of Marico was faced a rapid growth in the 2014. But it was
declined in the next year. This fluctuating RoE is not favorable to the
shareholders.

0
Table 9
EARNING YIELD RATIO OF THREE COMPANIES
Source: Profit & Loss statements of companies, http://nseindia.com, http://bseindia.com, http://monecontrol.com
Note: Market prices of shares are highest in the year.
COMPANY 2013 2014 2015
HUL Ltd. 0.0257 0.0218 0.0207
ITC Ltd. 0.0256 0.0284 0.0302
MARICO Ltd. 0.0258 0.0227 0.0193
0.0257
0.0218
0.0207
0.0256
0.0284
0.0302
0.0258
0.0227
0.0193
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
2013 2014 2015
Chart 8
EARNING YIELD RATIO OF THREE COMPANIES
Earnings Yield Ratio = Earnings per share / Market price per share.

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INTERPRETATION
 HUL Ltd.
Rate of return on the amount invested by the shareholders of HUL Ltd. is
showing a declining trend. However, company kept a stability in the later years.
So it can be challenge with other companies.
 ITC Ltd.
The above data shows that the Earning yield ratio of the ITC is very high in the
period. In every year it’s increasing.
 Marico Ltd.
Earning yield ratio of the Marico is showing a declining trend. In 2013 Marico
was highest among companies. But it was started falling in the following years.

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Table 10
PRICE TO BOOK VALUE RATIO (P/B Ratio) OF THREE COMPANIES
Source: Profit & Loss statement of companies, Balance sheet of the companies, money.rediff.com
COMPANY 2013 2014 2015
HUL Ltd. 55.17 54.09 21.11
ITC Ltd. 13.09 11.81 10.37
MARICO Ltd. 7.74 10.83 15.13
55.17 54.09
21.11
13.09 11.81 10.37
7.74
10.83
15.13
0
10
20
30
40
50
60
2013 2014 2015
Chart 9
PRICE TO BOOK VALUE RATIO (P/B Ratio) OF THREE
COMPANIES
Price to Book Ratio = Market price per share/Book value per share.

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INTERPRETATION
 HUL Ltd.
The PB Ratio of the Hindustan Unilever is very high in the first two years. But
it was suddenly fallen in the last year. This decline is favorable to the
shareholders of the company. Because, shares which have lower PB Ratio may
be considered as a ‘safer’ investment and vice versa.
 ITC Ltd.
When comparatively looking, ITC Ltd. kept a stable Price to book value ratio.
However above table shows slight declines in the ratio year to year. This decline
is good for the shareholders.
 Marico Ltd.
The above table and graph shows that PB Ratio of Marico Ltd. is increasing in
every year. It was 7.74 in 2013 to 15.13 in 2015.

0
Table 11
PRICE TO EARNING (P/E) RATIO OF THREE COMPANIES
COMPANY 2013 2014 2015
HUL Ltd. 38.87 45.83 48.30
ITC Ltd. 39.07 35.17 33.02
MARICO Ltd. 38.67 44.00 51.07
38.87
45.83
48.3
39.07
35.17
33.02
38.67
44
51.07
0
10
20
30
40
50
60
2013 2014 2015
Chart 10
PRICE TO EARNING (P/E) RATIO OF THREE
COMPANIES
Price to Earnings ratio = Market Price per Share /Earnings per Share.

0
INTERPRETATION
 HUL Ltd.
The above table and graph shows that PE Ratio of the Hindustan Unilever Ltd.
is increasing in the period. It indicates that the investors expecting an increased
earnings from the firm.
 ITC Ltd.
Data showing a decreasing trend towards the price to earnings ratio of ITC Ltd.
This trend is not favorable to the investors of the company. They expecting a
higher PE ratio.
 Marico Ltd.
Marico shows a high performance in the PE Ratio. They were in last position
among others in the first year. But in the last year Marico is at the first position.
This trend is a good for the investors.

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Table 12
INTRINSIC VALUE OF THREE COMPANIES
COMPANY 2013 2014 2015
HUL Ltd. 682.56 819.44 963.59
ITC Ltd. 369.21 390.03 397.90
MARICO Ltd. 238.98 331.32 459.61
682.56
819.44
963.59
369.21 390.03 397.9
238.98
331.32
459.61
0
200
400
600
800
1000
1200
2013 2014 2015
Chart 11
INTRINSIC VALUE OF THREE COMPANIES
Intrinsic Value = Earnings per share x Price to Earnings ratio.

0
INTERPRETATION
 HUL Ltd.
When considering all factors such as tangible and intangible factors, the value of
the share of Hindustan Unilever is showing an increasing trend in the period.
However the data shows that there is no large variations in the market price and
intrinsic value of shares of HUL Ltd. However, the there is a slight increment in
2013 and 2015.
 ITC Ltd.
There is a slight change in the intrinsic value when comparing to the market price
of the share of ITC Ltd. in 2015. The above table and chart shows a stable
intrinsic value towards the share of the ITC Ltd. There was no effective growth
in this period.
 Marico Ltd.
The intrinsic value of share of Marico Ltd. is lower than the market price of share
in 2013. There is no difference between market price and intrinsic value in the
following years.

0
CHAPTER IV
FINDINGS, SUGGESTIONS
AND CONCLUSION

0
4.1. FINDINGS

0
4.1. FINDINGS OF THE STUDY
 ECONOMY ANALYSIS
o Gross Domestic Product (GDP), Gross National Product (GNP), ForEx
Reserves, and Government Receipts has a positive growth during the
study period. Hence, the above said economic indicators are representing
the economic growth of our country. So it’s favorable to the investors.
o While excessive inflation and hyperinflation have negative economic
consequences, inflation's negative consequences for the economy can be
just as bad or worse. Consequently, policy makers since the end of the
20th century have attempted to keep inflation steady at 2% per year. But
when analyzing the inflation rates of Indian economy it’s very higher than
this standard. So it will adversely affect the FMCG industry also.
o The appreciation of exchange rate makes exports more expensive and
reduces the competitiveness of exporting firms.
o The Government spends more money to the infrastructural activities. The
infrastructure has played a major role in the present budget with a
viewpoint that, once the infrastructure is developed, other sectors will
automatically develop which leads to economic development of our
country.

0
 INDUSTRY ANALYSIS
o The India’s FMCG sector reported a high growth during the study period.
o The SWOT analysis discloses that the strength of FMCG sector in India
is the low operating cost when compared to other countries.
o Lower scope of investing in technology especially of small scale sectors
is the major weakness of this sector.
o The FMCG sectors have a great domestic market opportunity because of
the huge population.
o The major threats are tax and regulatory structure of our country.

0
 COMPNAY ANALYSIS
o HINDUSTAN UNILEVER LTD.
 Profitability of the company is in a steady position during the study
period.
 EPS of the company is higher the market value of the share will also be
higher in the stock market.
 HUL Ltd. has paid average dividend per share of ₹ 15.5 per share, which
are the highest dividend paying companies among the sample
companies.
 Distributed a greater proportion of earnings per share of the company to
its investors.
 Highest Return on Equity indicates the efficient utilization of funds by
the owners of the firm.
 The decline in the PB Ratio is favorable to the shareholders of the
company. Because, shares which have lower PB Ratio may be
considered as a ‘safer’ investment and vice versa.
 There is a slight increment in the intrinsic value in the year 2013 and
2015.
o ITC LTD.
 Profitability of the company is high. ITC Ltd. is the highest profit
earning company among the sample companies.
 The increasing trend of the EPS of ITC Ltd. is good to rise the demand
for the share in the stock market.
 Stability of the dividend per share is beneficial to the investors.
 The stable DPR of the company is favorable to the investors.
 Earning yield ratio of the ITC is highest among the sample companies.
 There was no difference between the market price and intrinsic value
of share in 2013 and 2014, but it’s slightly increased in 2015

0
o MARICO LTD.
 Profitability ratios of Marico is very low during the study period. It
shows the management’s inefficiency of profit earning.
 DPS of the company was very low. So company’s share are not
attractive to the investors.
 The increasing PB Ratio is not good for safety of shares.
 This period witnessed a tremendous growth in the PE Ratio of Marico
Ltd. They were in last position among others in the first year. But in the
last year Marico is at first. This growth is a good for the investors.
 The intrinsic value is slightly lower than the market price of the share
in 2013.

0
4.2. SUGGESTIONS

0
4.2. SUGGESTIONS
o The Government could regulate inflation rate which creates the path to the
economic development. Once the inflation rate is controlled the people have
sufficient money and they have a chance to invest their money in the securities
market.
o The exchange rate of Rupee could control to increase the total export from the
country. It will enrich the economy.
o The Government should simplify the tax and regulations related with the FMCG
sector.
o The FMCG sector could improve the R&D department and implement new
technology which helps to meet domestic as well as foreign competition. The
government could provide tax concession for rural marketers.
o Companies could try to increase the generation of profit for providing a better return
to its shareholders.
o DPS ratio of the companies shows that the dividend declared by the companies are
decreasing in the recent years. So the companies could declare more dividends in
their interim dividend declaration to attract more investors.
o The DP Ratio shows the distribution of declared dividend is also diminishing. So
the companies could increase the DPS for filling the gap between the DPS and EPS.
o An investor should be aware about economic condition, market condition,
Government policy and industrial policy, etc., they should analyze both internal as
well as external factors before going to invest in particular securities. The prior
analysis will help to the investor to minimize risk and maximize their return.
o Picking stocks with market prices below their intrinsic value can help in saving

0
money when building a portfolio.
o The intrinsic value of HUL Ltd. is slightly higher than its market price in 2013 and
2015. So this project recommends a buy strategy. If the investor already has the
shares they are advised to hold it and sell it in the future to earn profit.
o The intrinsic value of ITC Ltd. is showing a slight increment in 2015, Further the
company also shows a steady growth rate. So the share is recommended for
investment.
o The intrinsic value of Marico Ltd. is slightly lower than the market price of share in
a year, hence the Profitability ratios, DPS and PB ratio of the company is low in the
study period there is no hope to increase the intrinsic value in the future. So the
investor can either hold it for a shorter period and or sell it in the next market if he
holds the share, if not it is not recommended for a buy.

0
4.3. CONCLUSION

0
4.3. CONCLUSION
Fundamental analysis aims at finding the true worth of a security by analyzing
macroeconomic, industry scenario and company financial position and so on. An
investor can make safest as well as lucrative investment by analyzing the related
variables and ensure for optimum return. Fundamental analysis suggests that no investor
should buy or sell a share on the basis of the advices of market intermediaries or tips
given by the stock dealers, websites, etc., the fundamental analysis calls upon the
investor to make his buy or sell decisions based on the detailed analysis of the
information available.
This study focuses on fundamental analysis using various tools which help in trading
strategies for risk reduction and maximization of return. The objective of the study is to
conduct Fundamental analysis listed FMCG companies and the SWOT analysis for the
FMCG industry. The study revealed that through economic analysis the Gross Domestic
Product, Gross National Product, Interest rate, Foreign exchange reserves, Government
Receipts and Expenditure has a positive growth rate during the study period. Hence,
investors may consider these factors before going to make investment.
From the industry analysis found that the India’s FMCG sector reported a high growth
rate and its profit and sales also shows increasing trend during the study period. The
SWOT analysis discloses that the strength of FMCG sector in India is the low operating
cost, huge population is the opportunity, Lower scope of investing in technology
especially of small scale sectors is the major weakness and major threats are tax and
regulatory structure of our country.
The company analysis done with the help of ratio analysis and intrinsic value method
indicates that Hindustan Unilever Ltd. and ITC Ltd. are financially in satisfactory
position during the study period. When analyzing profitability ratios of both companies
ITC is earning more profits. However, HUL Ltd. offering more return on investment to
their shareholders.

0
ANNEXURE

0
HINDUSTAN UNILIVER LIMITED
Consolidated Profit and Loss Statement
(All amounts in ₹ Cr., unless otherwise stated)
Particulars 2015 2014 2013
Revenue From Operation (Gross) 32721.44 29557.90 27283.59
Less: Excise duty (1915.82) (1538.77) (1473.38)
Revenue from operations (net) 30805.62 28019.13 25810.21
Other income 618.39 621.03 606.90
TOTAL REVENUE 31424.01 28640.16 26417.11
EXPENSES
Cost of materials consumed 11867.31 11159.81 10284.66
Purchase of stock-in-trade 3697.96 3350.19 3235.31
Changes in inventories of finished goods s
c (including stock-in-trade) and work-in-
progress
58.28 (166.38) (31.13)
Employee benefits expenses 1578.89 1435.95 1318.34
Finance costs 16.82 36.03 25.15
Depreciation and amortization expenses 286.69 260.55 236.02
Other expenses 8394.94 7764.30 6999.28
TOTAL EXPENSES 25900.89 23840.45 22067.63
Profit before exceptional items and tax 5523.12 4799.71 4349.48
Exceptional items 664.30 228.68 608.40
Profit before tax 6187.42 5028.39 4957.40
Tax expense
Current tax (1902.33) (1117.84) (1167.59)
Deferred tax 30.17 (24.83) (9.45)
Tax adjustments of prior years (net) - 157.08 15.83
PROFIT FOR THE YEAR 4315.26 3867.49 3796.69
Earnings per equity share
Basic (Face value of ₹ 1.00 each) 19.95 17.88 17.56
Diluted (Face value of ₹ 1.00 each) 19.94 17.87 17.55

0
ITC LIMITED
GROSS INCOME 51932.14 48175.80 43044.21
Gross Revenue from sale of products & services 49964.82 46712.62 41809.82
Less: Excise duty 13881.61 13830.06 12204.24
Net Revenue from sale of products & services 36083.21 32882.56 29605.58
Other operating revenue 424.19 356.04 295.69
Revenue from operations 36507.40 33238.60 29901.70
Other income 1543.13 1107.14 938.70
TOTAL REVENUE 38050.53 34345.74 30839.97
EXPENSES
Changes in inventories of finished goods, work-
in-v progress, stock-in-trade and intermediates
(214.53) (128.41) (246.35)
Finance costs 57.42 2.95 86.47
Other expenses 6581.85 6019.05 5820.97
TOTAL EXPENSES 24053.01 21686.63 20155.79
Tax expense
Current tax 4020.99 3791.13 2934.79
Deferred tax 368.80 82.77 331.00
Earnings per equity share (Face value of ₹ 1.00
each)
Basic ₹ 12.05 ₹ 11.09 ₹ 9.45
Diluted ₹ 11.93 ₹ 10.96 ₹ 9.33

0
MARICO LIMITED
(All amounts in ₹ Cr. unless otherwise stated)
Revenue From Operation (Gross) 5741.23 4693.21 4598.98
Less: Excise duty 8.25 6.69 2.80
Revenue from operations (net) 5732.98 4686.52 4596.18
Other income 58.89 58.20 37.53
TOTAL REVENUE 5791.87 4744.72 4633.71
EXPENSES
Changes in inventories of finished goods,
work-in- progress, stock-in-trade and
intermediates
(109.53) 45.21 (127.46)
Finance costs 22.95 34.45 58.02
Other expenses 1418.75 1254.66 1390.18
TOTAL EXPENSES 4970.22 4050.14 4115.04
Profit before exceptional items and tax 821.65 694.58 518.67
Exceptional items- - - 33.21
Consist of :
Discontinuing operations - - (34.12)
Continuing operations 821.65 694.58 586.00
821.65 694.58 551.88
Tax expense
Current tax 203.47 201.94 131.87
Less: MAT credit (entitlement)/utilization 34.78 (22.65) (13.31)
Net current tax 238.25 179.29 118.56
Deferred tax (1.48) 11.19 27.63
236.77 190.48 146.19
Profit after tax and before Minority interest 548.88 504.10 405.69
Consist of :
Discontinuing operations - - (38.04)
Continuing operations 584.88 504.10 443.73
584.88 504.10 405.69
Less: Minority interest (11.43) (18.72) (9.83)
Earnings per equity share(Nominal value per share ₹ 1.00
each)
Basic ₹ 8.89 ₹ 7.53 ₹ 6.18
Diluted ₹ 8.89 ₹ 7.53 ₹ 6.17

0
HINDUSTAN UNILIVER LIMITED
Consolidated Balance Sheet
Particulars March 2015 March 2014 March 2013
EQUITY AND LIABILITIES
Shareholder’s Fund
Share Capital 216.35 216.27 216.25
Reserves and Surplus 3508.43 3060.78 2457.77
3724.78 3277.05 2674.02
Non-Current Liabilities
Other long-term liabilities 170.11 278.82 476.25
Long-term provisions 956.35 923.99 706.34
1126.46 1202.81 1182.59
Current Liabilities
Trade payable 5288.90 5623.84 5167.69
Other current liabilities 908.05 911.33 616.15
Short-term provisions 2585.87 1983.37 1872.02
8782.82 8518.54 7655.86
TOTAL 13634.06 12998.40 11512.47
ASSETS
Non-Current Assets
Fixed assets
Tangible assets 2435.50 2397.94 2256.79
Intangible assets 22.03 24.12 36.11
Capital work-in-progress 479.01 312.08 205.32
Intangible assets under development - 7.70 10.32
2936.54 2741.84 2508.54
Non-current investments 654.11 636.17 548.03
Differed tax assets (net) 195.96 161.73 204.78
Long-term loans and advances 583.46 605.51 384.29
Other non-current assets 0.44 0.68 296.84
1433.97 1404.09 1433.94
Current Assets
Current investments 2623.82 2457.95 1782.63
Inventories 2602.68 2747.53 2526.99
Trade receivables 782.94 816.43 833.48
Cash and bank balances 2537.56 2220.97 1707.89
Short-term loans and advances 657.27 528.78 648.26
Other current assets 59.28 80.81 70.74
9263.55 8852.47 7569.99
TOTAL 13634.06 12998.40 11512.47

0
ITC LIMITED
Share Capital 801.55 795.32 790.18
30735.69 26262.02 22287.85
Long-term borrowings 38.69 51.00 66.40
Differed tax liabilities(net) 1631.60 1296.96 1203.72
Other long-term liabilities 7.05 5.09 3.11
1778.06 1463.05 1398.85
Current Liabilities
Short-term borrowings 0.02 0.14 -
Trade payables 1904.62 1987.59 1688.98
11681.91 11504.32 10330.73
TOTAL 44195.66 39229.39 34017.43
ASSETS
Non-Current Assets
Fixed assets
Tangible assets 13777.14 11948.69 11118.55
Capital work-in-progress-Tangible
assets
2085.49 2272.94 1472.80
Intangible assets under development 28.65 22.79 14.99
16292.63 14308.47 12697.13
20240.63 18300.66 16425.96
Current Assets
Inventories 7836.76 7359.54 6600.20
23955.03 20928.73 17591.47
TOTAL 44195.66 39229.29 34017.43

0
MARICO LIMITED
Share Capital 64.50 64.49 64.48
1824.78 1360.63 1981.50
Minority Interest 13.65 35.79 35.14
Long-term borrowings 168.74 251.54 432.63
Differed tax liabilities(net) 7.88 9.62 5.79
Other long-term liabilities - 0.01 0.98
185.27 264.48 449.87
Current Liabilities
Short-term borrowings 165.43 274.35 358.08
Trade payables 564.32 502.52 478.74
1101.58 1304.05 1240.72
TOTAL 3125.28 2964.95 3707.23
ASSETS
Non-Current Assets
Fixed assets
Tangible assets 556.67 594.90 461.18
Capital work-in-progress 3.04 4.39 147.68
589.81 637.75 1422.44
Goodwill on consolidation 489.15 254.25 395.52
Other non-current assets 120.77 155.03 142.62
1296.11 1157.82 2118.00
Current Assets
Inventories 994.71 796.24 862.69
1829.17 1807.13 1589.23
TOTAL 3125.28 2964.95 3707.23

0
BIBLIOGRAPHY

0
REFERENCE BOOKS
Yogesh Maheswari, “Investment Management”, PHI Learning Pvt. Ltd., New
Delhi, 2008
Jeffery S. Abarbanell and Brain J. Bushee “Fundamental Analysis, Future
Earnings and Stock Prices”, Journal of Accounting Research, 1977
Sandip Mukherji, Manjeet and Kim, “A Fundamental Analysis of Korean Stock
Returns”, Financial Analyst Journal, 1997
Jiang Xia “Fundamental Analysis of Price on Chinese Steel Products”, Doctoral
Dissertation submitted to West Virginia University, Financial Analyst Journal,
2000
Mehmet Sarac, “Does Fundamental Analysis Matter for Foreign Investors? An
Empirical Analysis of Foreign Investment in the Istanbul Stock Exchange”,
Journal of Economic and Social Research, 2007
Viyyanna Rao and Nirmala Daita, “Fundamental Factors Influencing
Investments in Mutual Funds the EIC Approach: A Case Study of RCAMI”
Indian Journal of finance, 2012
WEBLIOGRAPHY
http://motilaloswal.com
http://data.worldbank.org
https://www.rbi.org.in
http://www.investopedia.com
http://money.rediff.com
http://www.moneycontrol.com
http://finmin.nic.in
http://statisticstimes.com
http://www.global-rates.com
http://www.nseindia.com
http://www.bseindia.com
http://www.wikipedia.com
http://info.shine.com

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