Professional Documents
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215 Ranu Saini
215 Ranu Saini
BCOM Honours
by
RANU SAINI
to the
DEPARTMENT OF COMMERCE
BHOPAL SCHOOL OF SOCIAL SCIENCES
April,2021
Submitted by Guided by
Ranu Saini Vinod Kumar Advani
CERTIFICATE
It is certified that the work contained in the project report titled “A Study on financial analysis on
FMCG Companies,” by “Ranu Saini,” has been carried out under my/our supervision and that this
work has not been submitted elsewhere for a degree*
Department : Commerce
April, 2021
DECLARATION
I hereby declare that this project report entitled “A Study On Financial Analysis On FMCG
Companies“ was carried out by me for the degree of BCOM Honours under the guidance and
supervision of Vinod Kumar Advani of Department of Commerce, BSSS College. The
interpretations put forth are based on my reading and understanding of the original texts and they
are not published anywhere in any form. The other books, articles and websites, which I have made
use of are acknowledged at the respective place in the text. This research report is not submitted
for any other degree or diploma in any other University.
Place: Bhopal
Place: Bhopal
Investment decision is a very important decision of everyone’s life. Some people often get
confused as in which sector to invest or which company will give best returns in future. To solve
this problem to an extent I have done the financial Analysis of FMCG Sector. To carry out this
research, I have chosen top FMCG companies based on their market capitalization and analyzed
them over their past year data, and interpreted whether the company is fundamentally strong or
For the analyzing purpose I have chosen Ratio analysis because it simplifies complex accounting
statements and financial data into simple and understandable ratios which makes it easy for
investor to analyze the company and also helps management to identify problem related areas so
that they can work on them.
I have compared these companies over their many years past data and commented that which
company is good and which is bad. This report also covers the overview of FMCG sector and its
Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy with
Household and Personal Care accounts for 50% of FMCG sales in India. The main growth driver
for this sector is rising awareness and change in lifestyle of consumers. The urban segment is the
largest contributor to the overall revenue generated by the FMCG sector in India (accounts for
55% revenue share) However, in the last few years, the FMCG market has grown at a faster pace
Each household person spends majorly on FMCG products monthly. The volume of money that
flows against FMCG product in the economy is very high as the number of consumers of FMCG
product are huge in number and also there are large number of competitors in the market making
FMCG industries work heavily on distribution network. Because they want their product to reach
every nook and corner of the country or the world. If any new player who wishes to enter the
market have to spend heavily on distribution and promoting brands as there are many other set
2. ITC Limited
5. Dabur
Mumbai, India.[3] It is a subsidiary of Unilever, a British company. Its products include foods,
beverages, cleaning agents, personal care products, water purifiers and other fast-moving
consumer goods.HUL was established in 1931 as Hindustan Vanaspati Manufacturing Co. and
following a merger of constituent groups in 1956, it was renamed Hindustan Lever Limited. The
Established in 1910, ITC Limited is a diversified conglomerate with businesses spanning Fast
Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education & Stationery Products, Incense Sticks and Safety Matches; Hotels,
Paperboards and Packaging, Agri Business and Information Technology. The Company was
incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited.
As the Company's ownership progressively Indianised, the name of the Company was changed to
India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the
ITC's multi-business portfolio encompassing a wide range of businesses, the full stops in the
Company's name were removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited,' where 'ITC' is today no longer an acronym or an initialised form.
Britannia Industries is one of India’s leading food companies with a 100 year legacy and annual
revenues in excess of Rs. 9000 Cr. Britannia is among the most trusted food brands, and
manufactures India’s favorite brands like Good Day, Tiger, Nutri Choice, Milk Biscuits and Marie
Gold which are household names in India. Britannia’s product portfolio includes Biscuits, Bread,
Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt. Britannia is a
brand which many generations of Indians have grown up with and our brands are cherished and
loved in India and the world over. Britannia products are available across the country in close to 5
The company’s Dairy business contributes close to 5 per cent of revenue and Britannia dairy
Established in 1897, the Godrej Group has its roots in India's Independence and Swadeshi
movement. Our founder, Ardeshir Godrej, lawyer-turned-serial entrepreneur failed with a few
estate, appliances, agriculture and many other businesses. In fact, our geographical footprint
extends beyond Earth, with our engines now powering many of India's space missions.
With a revenue of over USD 4.1 billion we are growing fast, and have exciting, ambitious
aspirations.
1.3.5 Dabur
Dabur India Ltd is one of the leading FMCG Companies in India. The company is also a world
leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. They operate in key
consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and
Foods.
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$
840 billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent
FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are
estimated to reach US$ 103.7 billion in 2020. The sector witnessed growth of 16.5
inflation, increase in private consumption and rural income. Penetration level as well
as per capita consumption in most product categories like jams, toothpaste, skin care,
hair wash etc in India is low indicating the untapped market potential. Burgeoning
Indian population, particularly the middle class and the rural segments, presents an
products. Growth is also likely to come from consumer 'upgrading' in the matured
product categories. With 200 million people have shifted to processed and packaged
food by 2010, India needs around US$ 28 billion of investment in the food-
processing industry. At present, urban India accounts for 66% of total FMCG
100
103.7
80
83.3
60 68.4
40 49 52.8
43.1
35.7 38.8
20 31.6 33.3
0
2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F
The FMCG sector in India is standing like Mammoth at fourth largest sector in the
Indian economy. This sector includes global businesses, well established distribution
in India is like the cherry on the cake for Indian FMCG industry.
But this sector did not evolve overnight. It took many years to reach it to this
position. As we know, India is always been one of the most populated countries thus
giving huge customer base to FMCG companies. So India is the best place for FMCG
companies to grow. Now let’s take a look to the history of FMCG sector.
The period from 1950's to 1980's did not see a lot of a development in this segment
attributable to the low purchasing power of Indians and the government pushing for
small scale sector. HUL and Amul were one of the main organizations that stuck
around and advanced as market players. Amul metamorphosised the dairy part in
India. Built up in 1946, Amul brought white revolution in India and changed the
unorganized dairy sector to an organized one. They pioneered items like milk
powder and baby food from buffalo milk. The brand keeps on becoming stronger
continuously and sells around 3960 tons of milk items every year. And how can we
Another major company at that time was HUL which was then more focused on
urban sector. But then there was one more company emerged ‘NIRMA’ that focused
on giving cheap products to the consumer. For e.g., surf Excel at that time was costly
product for most of the people and not everyone was ready to spend that much
Then there was the phase of Liberalization, which led to increase in choices of Indian
to invest in one of the most populated country on Earth. With this living standard of
Indian consumers was also rising and to cater this MNCs started producing high end
One, invest in expanding the distribution reach far and wide across India to enable
market expansion. And two, upgrade existing consumers to value added premium
So following these strategies, most of the companies fought with each other to mark
their presence in rural segment of India. Those who succeeded capturing the share
One of the biggest evolution in the FMCG Indian sector was the introduction of
‘Sachet’. Due to its introduction in the market, now even poor people or lower class
people have access to costly shampoos, detergents and hair oil. These sachets were
also purchased by middle class people and because of this now these things were
easily portable now. This innovation helped FMCG companies gain more customers
form Tier11 and Tier111 cities. These trends have tremendously evolved this sector.
Second major change was the way these companies did advertising of their products.
They shifted from traditional marketing to digital and new ways of marketing. They
have tied up with some e-commerce giants to promote their products and to entertain
the needs of younger generation they have also delivering packaged foods with less
delivering time.
CHAPTER 2
REVIEW OF LITERATURE
Before stepping into the empirical study, a quick look through the existing
from 1987 to 1996. With the help of relevant statistical techniques and tests
industry for the period from 1980 to 2003-04 to analyze the efficiency of its
asset management. For analyzing the data, the technique of ratio analysis,
simple statistical tools like arithmetic mean and statistical techniques like
analysis and multiple correlation analysis were used. The t- test, F test and
Chi-Square tests were applied at appropriate places. The study revealed that
liberalization era.
sampling, the researcher selected four companies such as ITC Ltd, Godrej
Consumer Products Ltd., Procter & Gamble and HUL. The data required for
the study was obtained from the BSE and NSE websites and company
websites for a period of five years starting from 2002-03and ending with
2006-07. The study was exploratory in nature. The collected data was
analyzed with the help of statistical tools – trend analysis, moving average
and correlation. The study concluded that as a whole the FMCG industry
showed the increasing trend in the stock prices after the declaration of
Boardman and Vinning (1989), Commander, Fan and Schaffer (1996) and
Malik and Sur (1998) examined the working capital management of HUL, a
well known FMCG company, during the period 1987-1996 using relevant
statistical techniques and tests. The results reveal a very high degree of
Nash and Randenborgh (1998) , Earle and Estrin(1999) and Dewenter and
Lermack, (2003) the benifits of financial ratios analysis. Financial ratios are
Lasher, (2005) dept ratios show how effectively the organization uses other
people’s money and whether it is using a lot of borrowed money.
FMCG company in the Indian health care industry for the period 1980-2004
using simple statically tools like arithmetic mean, techniques like ratio
regression analysis and multiple and statically tests like t- test, F-test and
Ross et.(2007) expressed most researchers divide the financial ratios into
Brigham and Ehrhardt(2010) stated the financial ratios are designed to help
an organization.
tools.
the GNP, Interst rate, Exchange rate, FER, Agriculture production, Govt.
Receipts and Expenses has a growth rate during the study period. The
company analysis done with the help of ratio analysis indicates that Colgate
and HUL Companies are financially in satisfactory position during the study
period.
Ms. J. Hema and V. Ariram(2016) found that Indian FMCG industry has a
high growth rate and its sales and net profit also shows increasing trend and
the company analysis revealed that its financial performance through the
economy. He says that competition coming from the unorganized sector can
sector.
According to Dr. N. Manicka Mahesh, Assistant Professor, school of
nature. Pricing of the scrips do not depend on the euphoria built among the
market participants, but the valuation matters. It is better to trade and invest
share market is risky and long term investment are always more preferable
than short term investment so the investor should prefer long term
that the short financial position of the companies in FMCG sector was not
proper return for the firm which hampered the liquidity and profitability,
because huge amount of fund became idle, which thus could not generate
suggested that improper liquidity is major threat for the survival of the firm.
company. Another study was conducted by Saleem and Rehman (2011) for
the financial year from 2004 to 2009 on selected Oil and Gas companies
by ROA, ROI and ROE and for the liquidity, current ratio quick ratio and
liquid ratio were used and it was found that ROA and ROI were
Rohit and Vipin (2012) found no relationship between size of firms and
picture about the financial position of any firm. He has suggested in his
study that the sample companies reflect up to the mark the current and quick
ratios except the interest coverage ratio. His study concluded that the firms
suggested that small firms maintain their liquidity more properly than big
firms. He has covered a period of ten years in his study. He has focused
cements making firms and found negative relationship between the two. He
has analysed the current ratio, liquid ratio, return on asset and return on
liquid ratio of the selected sample firms (Sarvanan and Abarna ,2014)
to the current ratio. A recent study was carried by Hetalgaglani and Smita
trends in the firm’s financial position over time. One rich source of
information for financial statement analysis is the audited financial
statements. The financial statements are usually part of the annual report
D.H. Kantilal studied on analysis of gross profit to sales ratio of top ten
between in the gross profit to sales ratio among different companies under
concluded that Gross Profit to sales ratio among different companies and
among different years under study is not same. Ashok Kumar (2013)
10 years from 2000-2010. It has been found that the liquidity positions of
Beaver’s contented that standard financial ratios can predict the financial
address the problems associated with the sample used. For example, most
Malhorta and McLeod argued that the only way to assess future financial
RESEARCH METHODOLOGY
In this project, I have done the financial analysis of FMCG industry. The main objective of this
project is to find some good FMCG stocks to invest in or to make a good portfolio out of these
stocks. We are focusing on earning maximum profits by minimizing the total risk after analyzing
trends of the industry and by doing fundamental analysis. Other objectives are listed below:
• To know about the FMCG industry and its contribution towards Indian economy.
• To find out some ratios and analyze them for the purpose of investment.
In the light of the above objectives, the hypotheses developed for the present study are as follows:
• H01: There is no significant impact of Sales on Liquidity position of selected FMCG firms.
• H02: There is no significant impact of Sales on Solvency position of selected FMCG firms.
• H03: There is no significant impact of Sales on Profitability position of selected FMCG firms.
Functional scope of this study is to analyze financial performance of Indian FMCG Companies
through Ratio Analysis. For this study researcher has selected seven Indian FMCG Companies,
which are listed in NSE Nifty. So, whole India is geographical criteria for this research study.
Financial analysis with reference to FMCG (Fast moving Consumer Goods) sector.
Assumption: -
2. I have taken 5 major companies of FMCG industry and have done the analysis on the basis
Benefits:
Fundamental analysis helps in:
Research Design:
Research design is a framework of techniques and methods chosen by researcher to carry out
his research in a logical manner so that he can handle the predefined research problem. In this
research, I have used descriptive research design as in this research I gathered, analyzed and
presented the collected data to show whether the company is fundamentally strong or not.
Sample Design:
I have selected few major FMCG companies to do the fundamental analysis and I have
Sample Size:
I have chosen top 5 FMCG companies on the basis of their market capitalization.
Data collection:
The data collected for the analysis is through the secondary sources like company’s annual
The data collected is through the secondary sources hence the reliability of the data is not
The study will provide a precise presentation of data and guidelines that will help an investor to
finalize his investment decision I have chosen top 5 companies as my sample. These 5 companies
are the biggest in the FMCG sector based on their market capitalization. These 5 companies are
Hindustan Unilever, ITC, Dabur, Britannia and Godrej consumer products ltd. I am going to
analyze their financial statements using ratios and will comment on them whether the company is
350000.00 336408.34
300000.00
Rs. (in crores)
250000.00
200000.00
150000.00
0.00
1
P/E RATIO
Price to earnings ratio known as P/E ratio is used for valuing a company that measures its current
share price relative to its Earning per Share (EPS). This ratio is generally computed to compare
different companies of same industry or same company with its past records. A company with a
high P/E ratio usually indicated positive future performance and investors are willing to pay more
Godrej Consumer
P/E RATIO
70
60
50
40
30
20
10
0
2018 2017 2016 2015 2014
INTERPRETATION:
HUL: As we can see from the chart the P/E Ratio of HUL keeps on increasing over
the years and it is the only company among my sample taken that has a positive
growth of P/E ratio. This is a favorable situation for the investors. The P/E ratio of
ITC: The P/E ratio for ITC is rather fluctuating over the years. Like in the 2015 it
declined by 3 points then for two consecutive years it rose than after this in 2018 it
again declined and it is not good for a company who is trying to retain its
shareholders.
DABUR: The P/E ratio for Dabur is not so fluctuating as it has declined only for 1
year, i.e. for 2016 and it has keeps on increasing for the rest of years. And also its
P/E ratio for 2018 is very high so investors may want to invest in this company.
BRITANNIA: the ratio of this company has shown a positive trend over years
except 2016 where it has fallen by 1 point. This ratio for the company has doubled
itself in the past 5 years so maybe we can say that company has some potential and
Godrej Consumer Products: The P/E ratio of this company is good as compared
to rest of the companies but it had not shown a good trend over the years. Like from
35% in 2014 it went up to 55% in 2016 and then in 2018 it declined to 47%. So by
looking at the trend we cannot say what it is like to be in the future as it is uncertain
but this company does have a good P/E ratio so risky investors may invest in it.
In general a higher ratio means that investors anticipate higher performance and
growth in the future. So P/E ratio of HUL is highest followed by Dabur and Godrej
so according to this ratio HUL is the company in which you should invest your
money into.
Dividend payout ratio or DPR is the total amount of dividends the company is paying
out to the shareholders relative to its net income. It is the percentage of total earnings
paid to the shareholders in the form of dividend. This ratio indicates that how much
the company is paying to the shareholders and how much it is retaining with itself.
INTERPRETATION:
HUL: HUL pays a good percentage of dividend to its shareholders i.e. 74.39% in
2018 and it is more or less constant over the years which is a very good sign for
shareholders because to pay dividend you have to earn profits and cash. Paying
ITC: ITC is not much constant rather it is fluctuating when it comes to paying
dividend. This doesn’t surely means that company is not making profits or earning
money but it can also be the case that the company is earning money but saving it
for the future projects and because of it not giving out dividends. This will make
DABUR: Dividend payout ratio of Dabur in 2014 was 45.4% and in 2018 it is
44.49% and there has been little ups and downs in between. The company has almost
a constant dividend payout ratio which is good for shareholders who are looking for
a steady income.
companies in the sector in my sample. Aged people won’t be happy investing in this
company because generally they are looking for steady income rather than making
paying out dividend in 2018. It went straight up to 61% in 2018 from 23% in 2017.
Maybe company has earn some big profits and thus distributing to its shareholders.
Not all the companies who are huge money or make good profits payout higher dividend
because of the opportunity cost involved with it. They might save this money for
some future projects and pay higher dividends in future. Among above chosen
companies HUL has the highest Dividend payout ratio followed by Godrej
Consumer group.
RETURN ON EQUITY:
Return on equity ratio is a profitability ratio that tells us about the firm’s ability to
generate profits from its shareholders’ investment. In layman terms, it tells us how
internally. Generally, companies with high ROE attracts investors and it is a better
ROE
INTERPRETATION:
HUL: The ROE ratio of HUL is greater than its competitors. Actually it is nearly 3-
4 times more than its competitors. But if we look at the past trend of the company,
it is not positive over the time. As it was 118% in 2014, it declined to 65% in 2016
and then from there it is rising slowly coming back on the right track.
ITC: The ROE ratio of the ITC continuously declined over the years. It was 33.51%
in 2014 and it went down to 21.83% in 2018. This means that company is not
effectively using employing it’s investment to generate more profits which is a red
except for 2016 where it has risen up by point percentage. This type of stock seems
unattractive to the investors and usually they refrain themselves from investing in
up to 50% from 43% in 2014. But after 2015, ROE ratio of Britannia has fallen
drastically from 50% in 2015 to 29% in 2018 which is not a good sign for investors.
Godrej Consumer Products: ROE ratio for Godrej was constant for 3 years straight
from 2015 to 2017 but in 2018 it has risen up by some points which is a good sign
and shows that management has started using its assets effectively.
A company with higher ROE ratio is more favorable to investors than a company
with low ROE ratio. HUL has the highest ROE ratio in the FMCG sector which
investors find very lucrative and hence will want to invest in this company. No
company is near HUL in terms of ROE ratio but it is followed by Britannia with a
EV/EBITDA:
The EV/EBITDA as given by its name is computed by dividing EV (enterprise
calculates by adding market capitalization and Debt and then subtracting cash and
cash equivalents from it. It is a very effective measure when valuing a company.
EV/EBITDA (X)
50
40
30
20
10
0
HUL ITC DABUR BRITANNIA Godrej Consumer
Products ltd.
INTERPRETATION:
HUL: Value of EV/EBITDA is considered better than P/E ratio because it is a more
compared to competitors but it is near other companies and have a positive trend
ITC: Value of EV/EBITDA of ITC is worst among all the companies. It stands at
17.53 which is lot lesser than its competitors so investors might want to invest in
other companies.
DABUR: EV/EBITDA of Dabur is quite good as it comes 2 nd in the industry just
after Godrej and it is increasing over the years as well except 2016 where it fell by
BRITANNIA: This ratio for the company seems to be good as it is more than
doubled itself in past 5 years and in 2018 only it increased by 8%. Britannia is
catching up to its competitors quickly and may even outrun them in coming few
years.
competitors. It has highest ratio in the industry and has a good positive growth over
the years. Godrej in the case of this ratio is far ahead of its competitors and is going
Godrej Consumer Products is the clear winner when it comes to analyzing over
EV/EBITDA as other players in the industry have a big negative gap. Dabur is right
behind Godrej with having a EV/EBITDA of 38.23 followed by Britannia with 38.05
NET PROFIT MARGIN RATIO
The net profit margin ratio is calculated by dividing net income by net sales. It shows
us that how much profit is generated as a percentage of revenue. It is also said as the
best indicator of company’s financial health. Investors can look into this ratio and
see whether the company’s management is generating enough profit from its sales
25
20
15
10
0
2018 2017 2016 2015 2014
INTERPRETATION:
HUL: The NP ratio of HUL is not that great when compared to its other competitors
but it shows a positive trend over the years. It started from 13.18 in year 2014 and
now stands at 15.16% in year 2018. This is not a big gap but the company is
fluctuating over the years like it is rising and falling in every alternate years and
investors generally refrain themselves from investing in these type of companies but
ITC has a great NP ratio in 2018 so investors will go for this company.
ITC has a very positive growth over the years. Like it started with 13.8% in year
2014 as same as HUL but in 2018 it is 4% stronger than HUL. This means Dabur
BRITANNIA: Britannia has the lowest NP ratio among its competitors but it has
shown positive growth over the years and its NP is doubled in past 5 year. Despite
Godrej Consumer Products: The NP numbers of Godrej consumer group are quite
good and it keeps on increasing year after year. It started from 13.84% in 2014 and
So as can be interpreted form the above data, the Net profit ratio of the FMCG sector
is quite good and all the companies in this sector has shown positive growth over the
years except ITC but it has the greatest Net Profit ratio in the industry followed by
CHAPTER 5
5.1 Finding
The present study deals with the evaluation of financial performance of the selected
FMCG firms in India (ITC & HUL).The liquidity position of the firm has been
analyzed with the help of the current ratio and quick ratio. The solvency position of
the selected firms has been analyzed with the help of debt-equity ratio while for the
profitability analysis, return on assets has been used. The study also revealed the
impact of sales on liquidity, solvency and profitability of selected FMCG firms with
the help of simple regression analyses. The main findings of the study and the
of selected FMCG firms during the study period was 25.36 indicating sound return
ratios i.e. quick ratio and current ratio has been a little lower than the standard norms
but still firms had a satisfactory liquidity position and have been able to meet short
term obligations. 3. Debt-Equity ratio of the selected firms has revealed that the firms
have made no use of or a little use of debt in their capital structure. The firms were
not trading on equity else they would have further increased their profitability. 4.
There has been a strong positive relation of sales with liquidity and profitability of
firms with increase in the sales. 5. Sales of the selected FMCG firms have
5.2 Suggestions
Based on findings of the study and conclusion drawn some critical points emerge which are
presented in the form of suggestions to improve the financial position of the selected firms.
1. Profitability of the selected firms has been satisfactory during study period. This trend of
2. The current ratio and quick ratio may further be improved by increasing current assets & quick
assets or by decreasing current liabilities and the firm should try to maintain the liquidity ratio near
3. Selected firms have not used much debt in their capital structure during study period. It is
suggested that firms should add more debt in their capital structure or should trade on equity to
increase the profit of the companies which in turn shall result in the availability of more profit for
4. Sales have significantly impacted the liquidity and profitability of the firms during study period.
It is suggested that the selected firms should try to increase their sales with the help of various
promotional activities by widening their distribution channels and providing proper training to
their salesman.
5.3 CONCLUSION
Fundamental analysis can be important to investor when they are looking to invest
in company. If they find the financials of the company strong enough then they will
revenue of $68.4billion in 2018 and projected revenue for 2020 is $103 billion. The
Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840
billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per
annum. Government initiatives are helping the FMCG sector in every way possible
like government has allowed 100 per cent Foreign Direct Investment (FDI) in food
processing and single-brand retail and 51 per cent in multi-brand retail which would
bolster employment and supply chain and also implementation of GST proved to be
I have done the analysis of 5 top companies of FMCG sector and came up with the
result that HUL is the best stock according to some ratios that are: P/E ratio, Return
on Equity ratio and dividend payout ratio but when I calculated EV/EBITDA of the
companies given, Godrej Consumer Group was the clear winner and according to
net profit margin ratio, an investor should invest into ITC. Well clearly 3 major ratios
are telling us that HUL is best but rest two ratios i.e. EV/EBITDA and Net profit
margin ratio tells us some different story and hence cannot be ignored as these are
two important ratios. So according to me HUL is a good stock to pick as it pays good
returns on equity and highest dividend payout ratio in the industry and also this
company comes under the good brand name i.e. Unilever. If one is looking for couple
of stocks then HUL and GODREJ will be the best because ITC has lowest
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