PGDM 2021-23

Section 2
Group 9
Name : Shadman Akhtar
Roll Number : DM23240
Industry : FMCG
Company : EMAMI Ltd.
Emami Limited is one of the leading and fastest growing personal and healthcare businesses in India, with
enviable portfolio of household brand names such as BoroPlus, Navratna, Fair and Handsome, Zandu Bal
Mentho Plus Balm, Fast Relief and Kesh King.
Established in 1974, The Company has a portfolio of over 300 + products based on ayurvedic formulations
Emami's current operations comprise more than 60+ countries including. SAARC, MENAP, SEA, Africa,
Eastern Europe and the CIS countries. Over 130 Emami products are sold every second somewhere arou
the world. Emami Limited, the flagship company of the Group, recorded a turnover of Rs 2881 crore, in 202
21.
 SHAREHOLDING P
SHAREHOLDERS 2015-16 (Values in %)

Promoter & Promoter Group 72.74

PUBLIC

1.) Institutional Investors

a) Mutual Funds & UTI's 1.15
b) Alternative Investment Funds 0.14
c) Banks, Financial Institutions & Insurance Companies 0.02
d) Foreign Institutional Investors 16.67
Sub-Total 17.98

2) Central Govt./State Govt./President of India 0

3) Others
a) Private Corporate Bodies 4.1
b) Indian Public 5.46
c) NRI's/OCB's 0.17
d) NBFC's 0
e) Trusts 0
f) Clearing Members 0.07
g) Foreign Nationals 0
h) IEPF Authority 0
Sub-Total 9.8

GRAND TOTAL 100

FREE FLOATING S
 Free Floating Shares 2015-16 (Values in %)
Total Shares 100
Promoter & Promoter Group 72.74
Free Float of Shares 27.26
REHOLDING PATTERN of EMAMI LTD.
2016-17 (Values in %) 2017-18 (Values in %) 2018-19 (Values in %)

72.73 72.73 62.74

2.67 5.22 13.16

0 0.17 4.17
0.06 0.05 0.06
2.45 0.01 11.31
27.26 27.26 28.7

0 0 0

4.24 3.85 3.81

4.32 4.44 4.4
0.22 0.23 0.26
0 0 0
0.05 0.15 0
0.09 0.05 0.05
0 0 0
0 0 0.04
8.92 8.72 8.52

100 100 100

REE FLOATING SHARES of EMAMI LTD.

2016-17 (Values in %) 2017-18 (Values in %) 2018-19 (Values in %)
100 100 100
72.73 72.73 62.74
27.27 27.27 37.26
2019-20 (Values in %)

52.74

24.87
3.77
2.82
7
38.46

3.24
4.91
0.29
0
0
0.29
0
0
8.8

100
2019-20 (Values in %)
100
52.74
47.26
 MAJOR SHAREHOLDERS of EMAMI LTD.

MAJOR SHAREHOLDERS 2018-19 (Values in %)

Diwakar Viniyog Private Limited 12.92

Suntrack Commerce Private Limited 12.83
Bhanu Vyapaar Private Limited 11.25
Raviraj Viniyog Private Limited 5.53
Prabhakar Viniyog Private Limited 5.32

Total % of shares pledged by the Promoters = 30.9

SHAREHOLDING PATTERN of EMAMI LTD.

600

500

400

300

200

100

0
up LIC or
s I's ds es tors otal ia rs s lic 's 's ts rs ls ty
ro B st UT un a ni s T Ind the odie Pub CB B FC rus be ona hori
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2015-16 (Values in %) 2016-17 (Values in %) 2017-18 (Values in %) 2018-19 (Values in %) 2019-20 (Values in %)
 2019-20 (Values in %)

10.91
10.82
9.64
4.73
4.51

C'
s
st
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ru be ona hori T ot OTA
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e) e ti ut b T
M Na F A Su ND
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f) g)
 e r h)
Cl Fo
f) g)

2019-20 (Values in %)
 INFORMATION FOR EARNINGS PER SHARE
Particulars 2018-19 2019-20
Net Profit (in Rs lacs) 30524.16 28911.97
Cash Profit (in Rs Lacs) 62328.44 61522.27
Weighted average number of shares (in Rs Lacs) 4539.36 4539.32
Earnings Per Share - Basic & Diluted (in Rs) 6.72 6.37
Earnings Per Share - Cash (Rs) 13.73 13.55

INFORMATION FOR EARNINGS PER SHARE

60000
40000
20000
0

2018-19 2019-20
 SEGMENT INFORMATION
Revenue from Operation 2018-19 (in Rs Lacs)
India 233482.62
Overseas 35980.19
TOTAL 269462.81

SEGMENT INFORMATION
300000

250000

200000

150000

100000

50000

0
India Overseas TOTAL

2018-19 (in Rs Lacs) 2019-20 (in Rs Lacs)

MATION
2019-20 (in Rs Lacs)
224070.75
41417.42
265488.17

ATION

TOTAL

20 (in Rs Lacs)
 Foreign Wholly Owned Subsidiaries
Sl. No NAME AND ADDRESS OF THE COMPANY

Emami Bangladesh Limited, Bangladesh Aqua

1 Towers, Mohakhali C/A,6th Level,
Dhaka - 1212, Bangladesh
Emami International FZE, UAE Leased Office
Building - 20,
2 Office No - 20G-07, P O Box - 42685
Hamriyah Free Zone, Sharjah, UAE
Emami Overseas FZE, UAE Leased Office Building -
20
3
Office No - 20G-07, P O Box - 42685,
Hamriyah Free Zone, Sharjah, UAE
Emami Rus (LLC), Russia
4 House # 11/1, Domodedovskaya Street Office # 145
Room # 1
115551, Moscow, Russia
Crème 21 (Formerly Known as Fentus
5 113. GMBH), Germany
Kaiser-Friedrich-Promenade 28, 61348 Bad Homburg
v.d. Hohe, Germany
Emami Indo Lanka Pvt Ltd, Srilanka No. 200,
6 Lukmanjee Square,
Colombo-14, Srilanka
Pharma Derm SAE Co.
7
New Borg El Arab Industrial City, 3rd Zone, Part No.
5, Block 11, Alexandria, Egypt

Fravin Pty Ltd., Australia

8 C/o Inventure Adam & Rogers Pty Ltd. Level 1, 214
Greenhill Road,
Eastwood SA 5063, Australia
Diamond Bio-tech Laboratories Pty Ltd., C/o
Inventure Adam & Rogers Pty Ltd. Level 1, 214
9 Greenhill Road,
9
Eastwood SA 5063, Australia
Abache Pty Ltd., Australia
10 C/o Inventure Adam & Rogers Pty Ltd. Level 1, 214
Greenhill Road,
Eastwood SA 5063, Australia
Wholly Owned Subsidiaries
HOLDING / % of shares
% of shares
SUBSIDIARY
/ ASSOCIATE held (2019-20) held (2018-19)
Subsidiary of Emami
100% 100%
Limited

Subsidiary of Emami
100% 100%
Limited

Subsidiary of Emami
International
100% 100%
FZE

Subsidiary of Emami
International
99.99% 99.99%
FZE

Subsidiary of Emami
International
FZE 100% 100%

Subsidiary of Emami
100% 100%
Limited
Subsidiary of Emami
Overseas
90.60% 90.60%
FZE

Subsidiary of Emami
International
85.00% 85.00%
FZE

Subsidiary of Fravin Pty

100% 100%
Ltd.
Subsidiary of Fravin Pty
100% 100%
Ltd.

Subsidiary of Diamond
Bio-Tech Laboratories
100% 100%
Pty Ltd.
 INVESTMENTS
PARTICULARS
Aggregate Amount of Unquoted Investments
Dividend Income from equity investment
Loss on Impairment of Investment in an Associate
      Investment Income
Investments in mutual funds / alternate investment fund

Investments
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2019 - 20 (Rs Lacs) 2018 - 19 (Rs Lacs)

Aggregate Amount of Unquoted Investments Dividend Income from equity investment Loss
      Investment Income Investments in mutual funds / alternate investment fund
 INVESTMENTS
2019 - 20 (Rs Lacs) 2018 - 19 (Rs Lacs)
6832.94 785.64
95.35 95.35
56.5 0
169.9 162.07
9176.08 2,060.62

Investments

2018 - 19 (Rs Lacs) 2019 - 20 (Rs Lacs)

vidend Income from equity investment Loss on Impairment of Investment in an Associate

nvestments in mutual funds / alternate investment fund
 2019 - 20 (Rs Lacs)
4101
96.37
98.3
163.39
4173.39

(Rs Lacs)

ciate
 RETURN vs I
Standard
49.8620883629369
Deviation
EMAMI Ltd.
Date
Open Close % change
4/1/2019 401.899994 412 2.5%
4/8/2019 412.799988 401.450012 -2.7%
4/15/2019 403.299988 394.200012 -2.3%
4/22/2019 394 386.5 -1.9%
4/29/2019 386.5 378.75 -2.0%
5/6/2019 377.950012 367.350006 -2.8%
5/13/2019 366 368.700012 0.7%
5/20/2019 372.350006 359.700012 -3.4%
5/27/2019 362.399994 348.299988 -3.9%
6/3/2019 351 341.299988 -2.8%
6/10/2019 343.950012 331.950012 -3.5%
6/17/2019 330.899994 289.299988 -12.6%
6/24/2019 279.899994 299.100006 6.9%
7/1/2019 297.5 307.950012 3.5%
7/8/2019 308.25 310.100006 0.6%
7/15/2019 313 319.799988 2.2%
7/22/2019 319 321.549988 0.8%
7/29/2019 323.799988 311.850006 -3.7%
8/5/2019 309.899994 311.649994 0.6%
8/12/2019 311.649994 301.450012 -3.3%
8/19/2019 302 289.600006 -4.1%
8/26/2019 293 297 1.4%
9/2/2019 297 294.75 -0.8%
9/9/2019 297 299.5 0.8%
9/16/2019 291.700012 324.149994 11.1%
9/23/2019 328.75 320.200012 -2.6%
9/30/2019 320.950012 310 -3.4%
10/7/2019 308 302.049988 -1.9%
10/14/2019 302.899994 351.100006 15.9%
10/21/2019 351.100006 331.100006 -5.7%
10/28/2019 325.950012 327.549988 0.5%
11/4/2019 328.75 324.5 -1.3%
11/11/2019 325 313.649994 -3.5%
11/18/2019 315.299988 313.049988 -0.7%
11/25/2019 313.100006 315.149994 0.7%
12/2/2019 315.5 318.049988 0.8%
12/9/2019 320.100006 309.950012 -3.2%
12/16/2019 311.5 301.649994 -3.2%
12/23/2019 310 306.600006 -1.1%
12/30/2019 308.700012 315.5 2.2%
1/6/2020 315 303.399994 -3.7%
1/13/2020 305.899994 351.350006 14.9%
1/20/2020 352 336.100006 -4.5%
1/27/2020 335 300.049988 -10.4%
2/3/2020 306 300.299988 -1.9%
2/10/2020 303 275.799988 -9.0%
2/17/2020 276.350006 269.299988 -2.6%
2/24/2020 268 256.549988 -4.3%
3/2/2020 258.899994 240.350006 -7.2%
3/9/2020 236.199997 207.050003 -12.3%
3/16/2020 206 184.199997 -10.6%
3/23/2020 176 156.399994 -11.1%
3/30/2020 152.5 169.949997 11.4%
RETURN vs INDEX (comparison between competitors)

832.860814317936 56.4803494525888

Nifty 50 Godrej Consumer Products Ltd.

Open Close % change Open Close
11665.200195 11665.950195 0.0% 692 670.549988
11704.349609 11643.450195 -0.5% 676 670.599976
11667 11752.799805 0.7% 677.799988 667.650024
11727.049805 11754.650391 0.2% 667.700012 653.200012
11748.75 11712.25 -0.3% 653.200012 641.349976
11605.799805 11278.900391 -2.8% 639.900024 644.549988
11258.700195 11407.150391 1.3% 645.049988 669.799988
11651.900391 11844.099609 1.6% 678 659.700012
11855.5 11922.799805 0.6% 667 688.049988
11953.75 11870.650391 -0.7% 694.900024 691.5
11934.900391 11823.299805 -0.9% 692.25 663.150024
11844 11724.099609 -1.0% 664.900024 669.400024
11725.799805 11788.849609 0.5% 669.450012 663.099976
11839.900391 11811.150391 -0.2% 662 671.849976
11770.400391 11552.5 -1.9% 666.599976 628.150024
11614.75 11419.25 -1.7% 630.5 627.849976
11392.849609 11284.299805 -1.0% 626 619.400024
11307.5 10997.349609 -2.7% 622.5 611.75
10895.799805 11109.650391 2.0% 611.75 653.400024
11109.650391 11047.799805 -0.6% 653.400024 622.849976
11094.799805 10829.349609 -2.4% 624 600.400024
11000.299805 11023.25 0.2% 606.599976 608.950012
10960.950195 10946.200195 -0.1% 608.950012 599.5
10936.700195 11075.900391 1.3% 601 623.549988
10994.849609 11274.200195 2.5% 620.5 684.75
11542.700195 11512.400391 -0.3% 689.400024 692.25
11491.150391 11174.75 -2.8% 692.25 668.549988
11196.200195 11305.049805 1.0% 670 692.349976
11335.900391 11661.849609 2.9% 692.349976 716.900024
11661.849609 11583.900391 -0.7% 716.900024 705.700012
11627.150391 11890.599609 2.3% 702.599976 738.049988
11928.900391 11908.150391 -0.2% 738 734.5
11879.200195 11895.450195 0.1% 736.349976 710.650024
11915.150391 11914.400391 0.0% 710.650024 712.700012
11922.450195 12056.049805 1.1% 712.700012 725
12137.049805 11921.5 -1.8% 724 664.900024
11939.099609 12086.700195 1.2% 669 674.75
12131.349609 12271.799805 1.2% 670 706.849976
12235.450195 12245.799805 0.1% 703 688.849976
12274.900391 12226.650391 -0.4% 690 688.950012
12170.599609 12256.799805 0.7% 688 738.25
12296.700195 12352.349609 0.5% 742.25 743.700012
12430.5 12248.25 -1.5% 747.400024 749.349976
12197.099609 11962.099609 -1.9% 748 664.549988
11627.450195 12098.349609 4.0% 661.5 646.799988
12102.349609 12113.450195 0.1% 650.450012 626.099976
12131.799805 12080.849609 -0.4% 626.099976 631.049988
12012.549805 11201.75 -6.7% 629 560.5
11387.349609 10989.450195 -3.5% 574 638.900024
10742.049805 9955.200195 -7.3% 628.099976 548.25
9587.799805 8745.450195 -8.8% 540 499.100006
7945.700195 8660.25 9.0% 475.850006 499.450012
8385.950195 8597.75 2.5% 489.950012 520.849976
titors)

3494525888 36.7473116531975

mer Products Ltd. Dabur India Ltd.

% change Open Close %change
-3.1% 410.049988 400.350006 -2.4%
-0.8% 401.049988 407.299988 1.6%
-1.5% 409 404.950012 -1.0%
-2.2% 405.700012 397.950012 -1.9%
-1.8% 397.950012 380.200012 -4.5%
0.7% 380 369.799988 -2.7%
3.8% 368 370.049988 0.6%
-2.7% 377.600006 399.049988 5.7%
3.2% 400.200012 395.950012 -1.1%
-0.5% 400 404.149994 1.0%
-4.2% 408 400.549988 -1.8%
0.7% 398.350006 392.600006 -1.4%
-0.9% 392.600006 400.5 2.0%
1.5% 400.799988 407.299988 1.6%
-5.8% 405.200012 407.700012 0.6%
-0.4% 407 420.200012 3.2%
-1.1% 423.600006 428.149994 1.1%
-1.7% 429 426.5 -0.6%
6.8% 424.299988 439.049988 3.5%
-4.7% 439.049988 428.049988 -2.5%
-3.8% 428.100006 424.399994 -0.9%
0.4% 426 448.799988 5.4%
-1.6% 448.799988 441.299988 -1.7%
3.8% 441 452.200012 2.5%
10.4% 449.899994 445.700012 -0.9%
0.4% 443 447.100006 0.9%
-3.4% 446 425.700012 -4.6%
3.3% 425.149994 445.600006 4.8%
3.5% 446.850006 466.5 4.4%
-1.6% 466.5 469.299988 0.6%
5.0% 465.549988 463.850006 -0.4%
-0.5% 464.200012 473.649994 2.0%
-3.5% 474.399994 461.700012 -2.7%
 0.3% 461.700012 463.799988 0.5%
1.7% 463.700012 459.100006 -1.0%
-8.2% 458.899994 463.799988 1.1%
0.9% 463.850006 460 -0.8%
5.5% 461 459.799988 -0.3%
-2.0% 458 459.799988 0.4%
-0.2% 459.5 455.600006 -0.8%
7.3% 454 466.850006 2.8%
0.2% 469.75 489.649994 4.2%
0.3% 489.649994 500.5 2.2%
-11.2% 500.399994 486.399994 -2.8%
-2.2% 484.899994 513.650024 5.9%
-3.7% 513.599976 506.100006 -1.5%
0.8% 506.450012 506.149994 -0.1%
-10.9% 503.549988 496.100006 -1.5%
11.3% 503.799988 500.549988 -0.6%
-12.7% 492 450.600006 -8.4%
-7.6% 439.399994 444.350006 1.1%
5.0% 408 423 3.7%
6.3% 415 450.049988 8.4%
 MAJOR ANNOUNCEMENTS (28-08-20
S.no Date Announcement
1 11/20/2020 EMAMI Ltd forays into home hygiene space with "EMASOL" - a comple
2 12/19/2020 EMAMI Intl. FZE, Sharjah (WOS company of EMAMI Ltd. Dispose
3 1/1/2021 EMAMI Ltd. Subscribed 10,00,000 fully paid up CCPS having a face value o
4 3/25/2021 EMAMI Ltd. Subscribed 5,00,000 fully paid up CCPS having a face value o
5 5/25/2021 EMAMI March 2021 (quarterly) PAT at Rs 88 crore vs Rs 23 crore YoY. Inco
6 6/28/2021 EMAMI made further investment in Helios Lifestyle Pvt Ltd by subscribing to e
7 8/2/2021 EMAMI June 2021 (quarterly) Net Profit at Rs 78 crores vs Rs 40 crores YoY. In
S (28-08-2020 to 27-08-2021) - EMAMI Ltd.
nouncement Open Close % Change
h "EMASOL" - a complete range of home hygiene products 386 396.2 2.6%
of EMAMI Ltd. Disposed its entire stake held of 85% 417 420.7 0.9%
S having a face value of Rs 10 each of Brillare Science Pvt. Ltd. 425.4 423.7 -0.4%
S having a face value of Rs 10 each of Brillare Science Pvt. Ltd. 472.8 464.1 -1.8%
vs Rs 23 crore YoY. Income at Rs 731 crore vs Rs 533 crore YoY 517 499.85 -3.3%
Ltd by subscribing to equity shares resulting in growth in its stakes 542.9 546 0.6%
vs Rs 40 crores YoY. Income at Rs 661 crores vs Rs 481 crores YoY 565 569.8 0.8%
Balance Sheet of EMAM
Sheet of EMAMI LTD. For 4 Business Years
All Values are in Rupees Lakhs
Profit and Loss Statement of EMAMI LTD.
ent of EMAMI LTD.
All values in Rupees Lakhs
 CASH FLOW ANALYSIS

CFO is negative and declining in '2018 to '2019 business years which m

company is unable to generate cash from the profits it is generating in th

Cash flow from operation have decreased in the FY19. Also, due to incr
prices of the product, EMAMI has seen some decline and other irregula
sales and profit trends as well.

The company is constantly trying to work upon it's financing activities se

Cash flow from operation have decreased in the FY19. Also, due to incr
prices of the product, EMAMI has seen some decline and other irregula
sales and profit trends as well.

The company is constantly trying to work upon it's financing activities se

that is why it is also trying to maintain a optimum level of cash generate
these activities.

CFA is negative changing (increasing and decreasing) throughout the ye

an indication of the unstable financial strength or cash generating streng
business. It shows that the company is trying hard to repay its debts but
(which means the volatility in the profits would vary).

There has been again an irregular variation in the amount of cash in han
furthermore implies the variation in equity shares of the company over ti
 Cash Flow Statement of EMAMI LTD
All values are in Rupee

SIS

ness years which means that the

it is generating in the year.

9. Also, due to increase in the

e and other irregularities in its

nancing activities segments and

 9. Also, due to increase in the
e and other irregularities in its

nancing activities segments and

el of cash generated through

g) throughout the years, which is

h generating strength of the
repay its debts but it's unstable

mount of cash in hand, which

he company over time.
ent of EMAMI LTD.
All values are in Rupees Lakhs
 Sales Trend of EMAMI LTD. and its co

COMPANY 2018 2019 2020 2021

Emami Ltd. 236426 248326 238992 258228

Dabur Ltd. 560906 627319 870359 956165
Godrej Consumer Products Ltd. 993699 1031434 991080 1102862

PS : All values are in Rupees La

This gives a macroscopic look at the larger picture. The comparison is done with other companies whic
compared.
The sales trend of EMAMI LTD. and GODREJ CONSUMER PRODUCTS LTD. shows an uneven growth and
shown a signicant regular increase over the previous years.
The table above shows that though there has been an increase and in some ways a decrease too in som
market share, customer acceptance, and user base and this positive Annual Sales Growth is very impor
be seen from the table above have been a bit unstable as compared to its competitor DABUR LTD. over
AMI LTD. and its competitors

COMPANY NAME 2018 2019 2020 2021

EMAMI Ltd. 236426 248326 238992 258228

% change as compared to last year - 5.03 -3.76 8.05

lues are in Rupees Lakhs

th other companies which are competitor and overall sales revenue generated are

s an uneven growth and fall over the 3 years. However its competitor DABUR LTD. has

ays a decrease too in some places. A positive sales growth also indicates an increase in
les Growth is very important for the financial stability of the company. EMAMI LTD. as it can
mpetitor DABUR LTD. over the given 4 years.
 Profit Growth of EMAMI LTD. an

COMPANY 2018 2019 2020 2021

Emami Ltd. 30951 30524 28911 47512

Dabur Ltd. 107205 126429 144792 169495
Godrej Consumer Products Ltd. 163418 234153 149658 172082

PS : All values are in Ru

Profit Growth of a company is somewhat related to its sales trend. We see a sim
LTD. as we did in its sales trend. The same goes for Godrej Consumers Products
positive growth in all the 4 years taken here.
Growth for a business is essentially an expansion, making the company bigger,
profitable.
Hence seeing both the above tables we can safely imply that over the 4 years co
to keep a positive growth rate over the other companies.
th of EMAMI LTD. and its competitors

COMPANY NAME 2018 2019 2020 2021

EMAMI Ltd. 30951 30524 28911 47512

% change as compared to last year - -1.38 -5.28 64.34

All values are in Rupees Lakhs

sales trend. We see a similar pattern here too in the profit growth and fall of EMAMI
rej Consumers Products Ltd. as well. Dabur Ltd. is the competitor that has shown a

ng the company bigger, increasing its market, and ultimately making it more
y that over the 4 years compared here, DABUR LTD. is the only one that has managed
s.
 Assets Growth of EMAMI LTD. and i

COMPANY 2018 2019 2020 2021

Emami Ltd. 259787 258303 243477 230409

Dabur Ltd. 58127 557878 935401 1084713
Godrej Consumer Products Ltd. 662408 666455 1495701 1428282

PS : All values are in Rupe

Generally, increasing assets are a sign that the company is growing, but everyon

behind the scenes than just looking at the assets. The goal is to determine how
Seeing the table of percentage change, we see a gradual decline in the assets o
better than EMAMI too.
EMAMI LTD. has seen a substantial decrease in its assets which directly signifies
needs to overcome its barriers soon to fare better.
 of EMAMI LTD. and its competitors

COMPANY 2018 2019 2020 2021

EMAMI Ltd. 259787 258303 243477 230409

% change as compared to last year - -0.57 -5.74 -5.37

All values are in Rupees Lakhs

y is growing, but everyone can relate to the fact that there is much more
goal is to determine how the asset growth of a company is financed.
al decline in the assets of EMAMI LTD. Godrej Consumer Ltd. has performed
ts which directly signifies that the company is going through a rough phase and
 Ra

YEAR Operating Margin = Operating Income / Sales

2019 21%
2020 17%
2021 26%

The Operating Margin shows a

decrease then again an increase in the
subsequent year indicating a very
small instability

Ratio Analysis of

YEAR Operating Margin = Operating Income / Sales

2019 23.00
2020 22.09
2021 25.48
 Ratio Analysis of EMAMI LTD.

ROE = Net Income/Shareholding Equity ROA = Net Income/Total Assets

12% 12%
12% 12%
21% 21%

The ROE of EMAMI Ltd. has remained
stable for the business years '19 and
'20 but has shown a major jump in
the year '21 showing higher value of
the products in the eyes of its
customers.
The ROE of EMAMI Ltd. has
remained stable for the
business years '19 and '20 but
has shown a major jump in
the year '21 indicating
thateither the net income is
increasing or the average total
assets are decreasing.

Ratio Analysis of DABUR LTD. - (Competitor of EMAMI LTD.)

ROE= Net Income / Shareholding Equity ROA=Net Income/Total Assets

16.42 22.66
21.80 15.48
22.01 15.63
MAMI LTD.
Debt to Equity Ratio = Debt/Equity
25.12
35.12
30.96
The Debt to Equity ratio is
showing a major jump in 2020
as compared to 2019. However
in 2021 it again declines. This
shows the unstable variation.
It means the company
managed to reduce its
potential risks in 2021
compared to 2020.
ompetitor of EMAMI LTD.)
Debt to Equity Ratio= Debt/Equity
40.57
40.83
40.87
Net Profit Ratio = Net Profit/Sales
0.12
0.12
0.18
The Net Profit Ratio of EMAMI Ltd.
has remained stable for the business
years '19 and '20 but has shown a
considerable jump in the year '21
showing that the company is now
more efficient at converting sales
into actual profit.
Net Profit Ratio= Net Profit / Sales
0.20
0.17
0.18
 Current Ratio = CA/CL

1.44
1.35
1.83

The Current Ratio ratio is

a decline in 2020 as
compared to 2019.
However in 2021 it again
increases. This shows the
unstable variation. Since
the ratio lies between 1.2
to 2 at all times, it's a
good indication.

Current Ratio= CA/CL

1.40
1.98
1.63
 FINANCIAL STATEM

EMAMI LTD.

Particulars 2018 - 19 2019 - 20

Share Capital - 45 45
Equity Capital 45.39 45.32
Reserves 2031 1778
Borrowings 110 210
Other Liabilities - 633 644
Trade Payables 291 324
Total Liabilities 2819 2678
Fixed Assets + 1680 1459
CWIP 36 8
Investments 187 156
Other Assets - 915 1055
Inventories 222 245
Trade receivables 216 308
Cash Equivalents 203 119
Loans n Advances 225 333
Other asset items 49 50
Total Assets 2819 2678

Particulars 2018 - 19 2019 - 20

Sales - 2695 2655

Sales Growth % 0.0648 -0.0148
Expenses + 1970 1970
Operating Profit 725 685
OPM % 0.27 0.26
Other Income 25 46
Interest 21 21
Depreciation 325 336
Profit before tax 403 374
Tax % 0.25 0.19
Net Profit 303 303
PS : All value
FINANCIAL STATEMENTS (2018 - 19) & (2019 - 20)

DABUR INDIA LTD.

Particulars 2018 - 19 2019 - 20

Share Capital - 177 177

Equity Capital 177 177
Reserves 5455 6429
Borrowings 699 522
Other Liabilities - 2106 2209
Trade Payables 1455 1482
Total Liabilities 8437 9337
Fixed Assets + 1969 2253
CWIP 64 147
Investments 3359 2800
Other Assets - 3045 4137
Inventories 1301 1380
Trade receivables 834 814
Cash Equivalents 328 811
Loans n Advances 501 636
Other asset items 82 497
Total Assets 8437 9337

Particulars 2018 - 19 2019 - 20

Sales + 8515 8685

Expenses + 6775 6892
Operating Profit 1740 1792
OPM % 0.2 0.21
Other Income 222 205
Interest 60 50
Depreciation 177 220
Profit before tax 1725 1728
Tax % 0.16 0.16
Net Profit 1442 1445
PS : All values are in Rupees Crores
 GODREJ CONSUMER PRODUCTS LTD.

Particulars 2018 - 19 2019 - 20

Share Capital - 102 102

Equity Capital 102 102
Reserves 7165 7796
Borrowings 3382 3575
Other Liabilities - 3445 3407
Trade Payables 2540 2480
Total Liabilities 14094 14880
Fixed Assets + 8670 9231
CWIP 52 57
Investments 516 672
Other Assets - 4855 4920
Inventories 1559 1703
Trade receivables 1293 1157
Cash Equivalents 895 770
Loans n Advances 1336 1487
Other asset items -227 -197
Total Assets 14094 14880

Particulars 2018 - 19 2019 - 20

Sales + 10314 9911

Expenses + 8183 7757
Operating Profit 2132 2154
OPM % 0.21 0.22
Other Income 362 32
Interest 238 228
Depreciation 170 197
Profit before tax 2085 1760
Tax % -0.12 0.15
Net Profit 2342 1497
 Ratios and thei

FORMULAS
LIQUIDITY RATIOS

Current Ratio Current Asset / Current Liabilities

Quick Ratio Quick Assets / Current Liabilities
Absolute Liquid Ratio Cash + Equivalents / Current Liabilities

SOLVENCY RATIOS
Debt to Equity Ratio Total Shareholders Equity / Total Liability
Total Asset to Equity Total Assets / Total Equity

EFFICIENCY RATIOS
Asset Turnover Ratio Sales / Total Assets
Recievable Turnover Ratio Sales / Accounts Recievable
Trade Payable Turnover Ratio Purchases / Trade Payables

Cash Holding as a % of Sales Cash / Total Sales

1) LIQUIDITY RATIOS :
Liquidity is the ability of the company to repay its debts in the shortest duration of time

a) CURRENT RATIO - An ideal current ratio is 2 and as we can observe from our company
competitors the ratios of DABUR LTD. and GODREJ CONSUMER PRODUCTS LTD. is not ev
b) QUICK RATIO - This is a more realiable ratio to calculate the liquidity of the company a
The quick ratio for our company is not ideal as it is more than 1. This shows that our com

2) SOLVENCY RATIOS :
It is defined as the ability of a company to repay its debts in a long term duration of time
3) EFFICIENCY RATIOS :

a) ASSET TURNOVER RATIO

This ratio indicates how efficiently a company is generating sales using its assets. In its s
competitors.
b) RECIEVABLE TURNOVER RATIO
This ratio indicates how many times in a year we are able to turn the recievables i,e, cas
c) TRADE PAYABLES TUROVER RATIO
This ratio indicates how efficiently we pay our creditors . The ratio decreased in the year
increased.
b) RECIEVABLE TURNOVER RATIO
This ratio indicates how many times in a year we are able to turn the recievables i,e, cas

c) TRADE PAYABLES TUROVER RATIO

This ratio indicates how efficiently we pay our creditors . The ratio decreased in the year
increased.
 Ratios and their Calculations

EMAMI LTD. DABUR INDIA LTD. GODREJ CONSUMER PRODUCT

2018 - 19 2019 - 20 2018 - 19 2019 - 20 2018 - 19

3.79 3.14 0.65 0.65 0.35

2.86 2.19 0.54 0.56 0.54
0.27 0.14 0.04 0.05 0.07

0.032 0.034 2.950 3.011 0.850

62.11 59.09 47.67 52.75 138.18

0.96 0.99 1.01 0.93 0.73

74.86 331.88 133.05 59.08 198.35
6.77 6.08 4.66 4.65 3.22

2% 2% 2% 2% 1%

he shortest duration of time in a year. Basically it focuses on the current scenario of assets and liabilities.

an observe from our company i.e. EMAMI LTD shows that it is not an ideal ratio. However comparing it wit
MER PRODUCTS LTD. is not even near to 2 which indicates poor management.
he liquidity of the company as it eliminates the inventory.
an 1. This shows that our company's Quick Ratio is bad as compared to our competitors.

n a long term duration of time.

g sales using its assets. In its sector, our company is having a good asset turnover ratio as compared to its

o turn the recievables i,e, cash.

he ratio decreased in the year 2020 which indicates there was a shortage of funds as our current liabilities
o turn the recievables i,e, cash.

he ratio decreased in the year 2020 which indicates there was a shortage of funds as our current liabilities
ONSUMER PRODUCTS LTD.

2019 - 20

0.35
0.56
0.07

0.867
145.88

0.67
173.88
3.13

1%

assets and liabilities.

wever comparing it with the

tors.

o as compared to its

our current liabilities

our current liabilities
 DuPont Analysis (3 Stage Model & 5 Sta

3 STAGE MODEL
EMAMI LTD.
RATIO FORMULA 2018 - 19 2019 - 20

Net Profit Margin Net income / Sales 0.11 0.11

Asset Turnover Sales / Assets 0.96 0.99
Equity Multiplier Assets / Shareholder's Equity 62.11 59.09
ROE 6.68 6.69

5 STAGE MODEL
EMAMI LTD.
RATIO FORMULA 2018 - 19 2019 - 20

Tax Burden EAT / EBT 0.75 0.81

Interest Burden EBT / EBIT 0.56 0.55
EBIT Margin EBIT / Net Sales 0.27 0.26
Asset Turnover Net Sales / Total Assets 0.96 0.99
Equity Multiplier Total Asset / Equity 62.11 59.09
ROE 6.68 6.69
age Model & 5 Stage Model)

One thing to note down here

AGE MODEL using the 3 Stage Model or t
DABUR INDIA LTD. GODREJ CONSUMER PRODUCTS LTD. Taking into consideration the
2018 - 19 2019 - 20 2018 - 19 2019 - 20 for both EMAMI as well as D
there is a major downfall in i
0.17 0.17 0.23 0.15 Margin, Asset Turnover and
positive sign considering the
1.01 0.93 0.73 0.67
47.67 52.75 138.18 145.88 In the three stage model, ne
8.15 8.16 22.96 14.68 EMAMI LTD has a sustainabl
The overall return of equity a
the industry average which
sign for any company which
In the year ending March 20
AGE MODEL the company's ROE increase
impacted the ROE .
DABUR INDIA LTD. GODREJ CONSUMER PRODUCTS LTD.
2018 - 19 2019 - 20 2018 - 19 2019 - 20 By doing this DuPont Analys
the financial year ending Ma
0.84 0.84 1.12 0.85
Our company has show a ma
0.99 0.96 0.98 0.82 been slight decrease in our c
0.20 0.21 0.21 0.22
1.01 0.93 0.73 0.67
47.67 52.75 138.18 145.88
8.15 8.16 22.96 14.68
One thing to note down here is that the ROE remains same no matter whether we calculate
sing the 3 Stage Model or the 5 Stage Model.

aking into consideration the 3 stage model, the Return on Equity has very marginally increased
or both EMAMI as well as DABUR over the subsequent year. However in the case of GODREJ
here is a major downfall in its ROE. This indicates that either one or two or all 3 of Net Profit
Margin, Asset Turnover and Equity Multiplier has drastically reduced for GODREJ. This isn't a
ositive sign considering the fact that this change is just over one year.

n the three stage model, net profit margin is the main indicator of the overall ROE of the firm .
MAMI LTD has a sustainable net profit margin which contributes the most to the overall ROE.
he overall return of equity according to the 3 stage model for my company is good because its
he industry average which is average. The ROE for our company has increased which is a good
ign for any company which signifies the company is running more smoothly and efficiently.
n the year ending March 2020 , even though the overall profit increased , as a result of which
he company's ROE increased in 2020. The overall increase in asset turnover ratio has also
mpacted the ROE .

y doing this DuPont Analysis we can observe that the ROE for our company has increased in
he financial year ending March 2020.

Our company has show a marginal increment in ROE which is a sustainable sign but there has
een slight decrease in our company's equity multiplier.