Fmcg Final Portfolio

8/9/2019 Fmcg Final Portfolio

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Presented By

Div: B

Pranav Ghumatkar ROLL NO 03

Darshana Ghodinde ROLL NO 04

Smrita Kachru ROLL NO 05

Mark Godinho ROLL NO 06



Products which have a quick turnover, and relatively low cost

are known as Fast Moving Consumer Goods (FMCG). FMCG

products are those that get replaced within a year

Products such as toiletries, soap, cosmetics, tooth cleaning

products, shaving products and detergents, as well as other

non-durables such as glassware, bulbs, batteries, paperproducts, and plastic goods.



FMCG Market in India

FMCG - the 4th largest sector of Indian economy

Expected growth ± 8% to 8.5%

India is one of the largest emerging market in FMCG, the reasons are

1) Largest Domestic Market

2) Rapid urbanization

3) Increased literacy and

4) Rising per capita income



By 2015 Indians under age 20 are estimated to make up 55% of the population

and would have proportionately higher spending power.

The FMCG sector in India is expected to grow at a compounded annual growth

rate (CAGR) of 9%

Indian FMCG Market Size





Hindustan Unilever Limited



Company Overview

Incorporated in 1933

The group has more than 400 brands spanning 14

categories of (HPC) & (F&B) products

It has presence in more than 100 countries

Headquartered in Mumbai, national sales network with

offices in 4 metro cities.

35 manufacturing locations across India.



MISSION

The mission that inspires HUL's over 15,000 employees is to "addvitality to life". With 35 Power Brands, HUL meets everydayneeds for nutrition, hygiene, and personal care with brands thathelp people feel good, look good and get more out of life.

It is a mission HUL shares with its parent company, Unilever,which holds 52.10% of the equity. A Fortune 500 transnational,Unilever sells Foods and Home and Personal Care brands inabout 100 countries worldwide.



Share holding pattern

15%

15%

3%

51%

16%

Foreign

Institutions

Non Promoter

Promoters

Public & Others



Products

Home & Personal CarePersonal wash Laundry

Lux

Lifebuoy

Liril

Breeze

Pears and Rexona

Hamam

Surf Excel

Rin

Wheel

bleech

Beauty Pr oducts Hair-Care

Fair & Lovely

Lakme

Ponds

Sunsilk naturals

Clinic

Dove

Deo spray Beauty Pr oducts

Axe

Rexona

Pepsodent

Close-up

Ice-cream Foods

Kwality Wall's ( Aata and salt)

Kissan(Jam,Ketchup,S

quashes)

Knorr Soups

Tea Coff ee

Brooke bond

Lipton

Brooke bond

Bru



HUL ahead of other f ir ms





Types of ratios

Profitability ratio

Leverage ratio / Capital structure ratio Turn over ratio or activity ratio

Liquidity or Short term solvency ratios



Liquidity & Leverage Ratios

March 09 Dec 07 Dec 06 Dec 05

Current Ratio 0.92 0.68 0.73 0.70

Quick Ratio 0.51 0.25 0.34 0.33

Total Debt/Equity 0.20 0.06 0.03 0.02

Interest Coverage Ratio 118.70 83.09 171.62 83.27



Management Efficency Ratios


Inventory Turnover Ratio 9.26 7.20 8.02 8.57

Debtor Turnover Ratio 41.83 31.41 25.42 22.12

Asset Turnover Ratio 7.81 5.64 5.35 5.11



Profitability Ratios


Operating Margin (%) 14.46 14.95 14.74 14.14

Gross Profit Margin (%) 13.50 15.86 15.80 15.03

Net Profit Margin (%) 12.05 12.58 14.94 12.42

Return On Net Worth (%) 121.34 122.97 68.14 61.09

Return on Capital Employed (%) 121.06 138.72 65.89 67.66

Earning Per Share 11.47 8.12 8.41 6.40

Dividend Per Share 7.50 9.00 6.00 5.00

CFO/PBIT(%) 13.35 13.78 13.50 12.87



Security Analysis

Parameters Values

Avg. Weekly Return 0.58

Standard Deviation 3.56

Variance 12.64

Beta 0.2

Coefficient of Variation 6.10

Required Return - CAPM 0.50





Dabur India Ltd An Overview

Dabur India Limited is the fourth largest FMCG Company in India

with Revenues of US$600 Million (Rs 2834 crore) & Market

Capitalisation of ov

er US$2.2 Billion (Rs 10,000 Crore).Dabur India Q2 Net Profit Surges 30.7% To Rs 140.34 Crores

To set up second unit in Himachal Pradesh.

Invests Rs. 180 crore for new manufacturing facilities.

The firm plans to add 4-5 stores this fiscal and 10 stores each year from the next fiscal.



H

air o

il Sham

poo

Vatika

Amla

Sarso

Vatika heena conditioning

Anmol-natural shine

silky

Skin Care Oral Care

Vatika fairness

Gulabari

Olive oil

Dabur lal tel

Babool

Meswak

promise

Binaca

Home Care

Odomos

Odonil

Sanifresh

Odopic

Digestive Health Supplements

Hajmola range

Hingoli

Pudin hara

Chyawanprash

Dabur Honey

Glucose

Pr oducts of Dabur Home & Personal Care

Food



Share holding pattern

9%

14%

1%

70%

6%

Foreign

Institutions

Non Promoter

Promoters

Public & other



Types of ratios

Profitability ratio

Leverage ratio

Liquidity or Short term solvency ratios

Current Ratio



Profitability ratio :

Profitability ratio measures profitability of a concern firm or company

Net pr of it ratio = (Net pr of it af ter taxes / Net sales )x 100

Net pr of it ratio

The net profit margin is

quiet impressive, and the

company is performing well.

Years 2006 2007 2008 2009

Net Profit after Tax 189.08 252.08 316.77 373.55

Sales 1,372.39 1,782.08 2,128.02 2,435.85

Net Profit Ratio 13.77742 14.14527 14.88567 15.33551



Liquidity ratio :liquidity ratio measures the short time solvency of the firm.

Quick ratio or acid test ratio = Quick assets / Current liabilities.

Quick assets = Current assets ± Stock + Loans and Advances

The small µQuick ratio',

says that the company'sfinancial strength is not

so strong. In general, a

quick ratio of 1 or more is

accepted by most

creditors.

Years 2006 2007 2008 2009

Q uick Assets 169.56 239.21 374.76 600.17

Current Liabilities 202.80 301.78 345.16 381.87

Liquidity Ratio 0.836095 0.792664 1.085757 1.571661



Debt/Equity Ratio:

Debt/Equity Ratio = Total Debts/ Shareholders equity

A high debt/equity ratio

generally means that a

company has been

aggressive in financing its

growth with debt.

Years 2006 2007 2008 2009Total Debts 20.48 19.54 16.69 138.98

Shareholders Equity 57.33 86.29 86.4 86.51

Debt/Equity Ratio 0.35723 0.226446 0.193171 1.606519

More than 1, this indicate

that company has taken

loan from market to finance

the business



Current Ratio:

used to give an idea of the company's ability to pay back its short-term liabilities

(debt and payables) with its short-term assets

Current ratio = Current assets / Current liabilities

The ratio is an indication of acompany's ability to meet short-term

debt obligations; the higher the ratio,

the more liquid the company is.

Years 2006 2007 2008 2009

Current Assets 285.68 397.79 576.81 973.42

Current Liabilities 202.80 301.78 345.16 381.87

Current Ratio 1.408679 1.318146 1.671138 2.549087



Earning Per Share

Earning per share (EPS) = Net profit after Taxes / No of shares outstanding.

Earning per share is

performing well it is help full

maintain the good will amongthe share holders

Years 2006 2007 2008 2009

Net Profit after Taxes 189.08 252.08 316.77 373.55

No of Total Shares 5,733.03 8,628.84 8,640.23 8,650.76

EPS 3.30 2.92 3.67 4.32



Security analysis

Avg weekly return 2.69


Beta 0.0034

Systematic risk 0.0002

Unsystematic risk 275.98

variance 275.972

Coeff. Of var 6.17

Return as per CAPM 0.1558



Britannia Industries Ltd



Britannia started in 1892 in kolkata.

In 1975, the Britannia Biscuit Company took over the

distribution of biscuits from Parry's.

In the subsequent public issue of 1978, Indian shareholding

crossed 60%, firmly establishing the Indianness of the firm.

Britannia today moved up to the 9th position in terms of its

brand equity.

Today it has become an International company with various

subsidiaries and Joint Ventures.



Tiger Biscuits

Good Day

Bourbon

50 50

Treat

Milky Bikis

Nutrichoice

Marie Gold

Biscuits Bread

WholeWheat Bread

Daily Fresh Bread

Cake

Good Day Cakes

Cho

co

late Cakes

Fruit Cakes

Dairy

Cheese

Milkman



Britannia is offering more value at affordable price points (Rs2,

Rs4, Rs5) particularly in the current economic environment

Britannia is strengthening its brands through product design,

delivery, mix and introducing differentiated products

Britannia has not increased product prices over the past 12

months

Increase in input cost can hurt the profit margins of the

company sugar and wheat prices have risen more than 40% over the past

two years.







Fundamental Analysis of Britannia

R atios Mar 09 Mar08 Mar 07 Mar 06 Mar 05

EPS 75.51 79.95 45.06 61.29 62.27

Dividend payout(%) 400. 180 150 150 140

Sales Growth (%) 20.26 17.66 28.36 7.92 10.27

Operating Profit Margin(%) 7.20 8.97 5.85 11.72 11.58

PAT Margin(%) 5.75 7.31 4.86 8.48 9.25

Current Ratio 0.84 1.07 1.17 1.22 1.27

RONW 22.60 26.07 17.51 26.67 33.54

ROA -- 15.79 11.42 16.70 19.32

Inventory turnover 14.54 9.98 10.31 9.34 11.97

Debtors Turnover 64.88 69.07 88.94 53.85 51.30

Debt/Equity 0.03 0.14 0.01 0.02 0.01



Security Analysis of Britannia

Parameters Values



Variance 21.62

Beta 0.22





H

industan Unilever Limited

Asian Paints



Started in 1942 by four entrepreneurs:

Champaklal choksey,Chimanlal choksey,Suryakant Dani and

Arvind Vakil asASIAN OIL & PAINTS COMPANY.

Within three years, their turnover reached 3.5lacs.

In 1967, Asian paints became the 10th largestpaint company in the world.



Asian Paints is India's largest paint company &Asia's third largest paint company, with a

turnover of Rs 54.63 billion.

Asian Paints operates in 21 countries & has 29

paint manufacturing facilities in the world

servicing consumers in over 65 countries

Berger International Limited,

APCO Coatings,

SCIB Paints

Taubmans



Ancillaries : Primers ,Stainers ,Fillers

Automotive

Decorative Paints:

Exterior Walls :AEC,APEX

Interior Walls: Distemper Metal SurfaceWood

Surfaces

Industrial :Floor Coating ,Road MarkingsIndustrial tinting system,Powder coating

ASIAN PAINTS PRODUCTS



Paints manufacturing companies

Market Share in India



Mar-09 Mar-08 Mar-07 Mar-06 Mar-05

Sales 4,270.05 3,416.16 2,821.29 2,319.16 1,941.52

Operating

profit561.27 554.01 421.76 351.92 293.78

Gross profit 610.93 608.32 455.33 384.02 322.64

EPS (Rs) 37.73 39.4 28.14 19.58 18.12

Annual results



Share Holding Pattern

50

10.65

14.11

14.5

10.74

indian promoters

bank fin inst &insurance

FII's

public

others



Net profit ratios

Operating ratios Leverage ratios

Liquidity ratios

Types of Ratio



Net profit ratios

M AR 09 M AR 08 M AR 07 M AR06 M AR 05

Net Profit

after profit 370.53 376.53 267.86 220.39 172.77

Sales 4,270.05 3,416.16 2,821.29 2,319.16 1,941.52

Net profit

margin 7.97 10.28 9.11 7.59 8.33



Operating ratios

MAR 09 MAR 08 MAR 07 MAR 06 MAR 05

Selling

expenses779.34 646.58 508.88 423.76 352.83

Adminst.

expenses170.37 139.33 126.00 110.20 101.62

Sales 4,270.05 3,416.16 2,821.29 2,319.16 1,941.52

Operating

margin (%)13.16 15.83 14.77 14.95 14.84




debt/equity 0.06 0.08 0.14 0.12 0.11

Owners fund

as % of total

source

94.37 92.30 87.36 89.55 89.79

Fixed assetsturnover

ratio

4.17 3.97 3.81 3.46 2.99

Leverage ratios

A high debt/equity ratio generally means that a

company has been aggressive in financing its growth

with debt.



Liquidity ratios


Current ratio 1.13 1.02 1.24 1.15 1.10

Q uick ratio 0.58 0.47 0.59 0.55 0.47

Inventory

turnover

ratio

9.80 8.03 8.27 8.80 8.00



RATIO Mar 09 Mar08 Mar 07 Mar 06 Mar 05

EPS 37.78 39.12 28.36 19.58 18.09

Dividend

payout(%)17.5 17.0 13.0 12.5 9.5

Sales growth (%) 25.43 21.74 20.66 19.27 13.98

PAT Margin 7.97% 10.28% 9.11% 7.59% 8.36%

Current Ratio 1.03 1.08 1.09 0.99 1.13

Inventory

Turnover 9.80 8.03 6.88 7.09 6.27

Debtors Turnover 16.02 14.74 14.03 14.65 14.31

Debt/Equity 0.06 0.08 0.14 0.12 0.11

Fundamental Analysis of Asian paints



omy

Parameters Values



Variance 25.82

Beta 0.5



Security Analysis of Asian Paint



Historic Graphs



Hindustan Unilever



DABUR



Britannia



Asian Paints



HUL Asian paints Britannia Dabur

EPS 11.46 37.78 75.51 4.32

Inventory

turnover

9.26 9.80 14.54 10.94

Debtors

turnover

20.95 16.02 64.88 22.63

D/E 0.20 0.06 0.03 0.19

Current ratio 0.89 1.03 0.84 1.19

PAT% 11.40 7.97 5.75 17.19

ROCE% 122.83 49.35 25.29 47.98

EBIT% 13.86 12.39 6.08 17.11



HUL Asian paints Britannia Dabur

Avg/weekly

return

0.58 2.40 0.50 2.69

Beta 0.20 0.50 0.22 0.0034

Standard dev 3.56 5.08 4.65 16.61

Variance 12.64 25.82 21.62 275.98

Coeff. Of var 6.10 2.12 9.28 6.17

Return as per

CAPM

0.50 1.015 0.5306 0.1558

Combined security analysis



THANK YOUTHANK YOU

Fmcg Final Portfolio

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