Overview of company

Ranks
amongst the
top 5 private
Aditya Birla Capital Limited (ABCL) is the Companies.
holding company for the financial
services businesses of the Aditya Birla
Group. Aditya Birla Capital Limited (Formerly Birla
Formerly known as Aditya Birla Financial Sunlife Insurance Company Limited)
Services Limited, ABCL’s subsidiaries have • Established in 2000.
a strong presence across Protecting, • Joint Venture :- Aditya Birla Group
Investing and Financing solutions, ABCL (India) + Sun Life Financial Inc. (Canada)
is a universal financial solutions group
catering to diverse needs of its customers
across their life stages.
 OBJECTIVES

PRIMARY SECONDARY
OBJECTIVE OBJECTIVES

1. To select the best performing company among the

To conduct Fundamental selected two companies.
analysis for stock market listed 2. To know about the FMCG sector in India.
FMCG companies and 3. To check whether fundamental analysis alone can
SWOT analysis for the FMCG evaluate investment opportunities in the share.
industry. 4. To forecast the future performance of the selected
companies.
5. To recognize the suitability of the shares for
investment in long term
 RESEARCH METHODOLOGY

RESEARCH DESIGN SAMPLING PERIOD OF STYDY

• Sample design : 2 FMCG

Descriptive research which shows cause-
effect relationship. It’s a type of secondary
data.
companies based on total market
capital with same product line.
• Sample size : P&G LTD. And
COLGATE analysis of past 3years.
This study is based on
analytical nature and
covers period of three years
from 2016 to 2018.

• Source of data : Annual report

Websites
Journals
 DATA ANALYSIS & INTERPRETATION
PROFITABILITY RATIO HIGHER IS
BETTER
• Operating profit margin ratio P&G has a HIGHER IS
better BETTER
YEAR operating ratio P&G has a
2016(%) 2017(%) 2018(%) better return
on equity.
COLGATE
19.2 18.84 22.71
YEAR
2016(%) 2017(%) 2018(%)
PROCTER &
GAMBLE 27.32 28.20  23.91
COLGATE 64.94 50.48 48.32

PROCTER
& GAMBLE 29.37 39.95  57.17
Return on equity
Cont….

Solvency ratio Ideal ratio

2:1
Current ratio
YEAR 2016 2017 2018
RATIO(:) RATIO(:) RATIO(:) HIGHER
RATIO shows
COLGATE better
0.90 0.93 1.05 performance
P&G
PROCTER &
GAMBLE 3.19 1.04  1.54 Efficiency ratio
YEAR 2016 2017 2018
(Times) (Times) (Times)

COLGATE
1.42 1.26 1.03

TOTAL ASSET TURNOVER RATIO PROCTER &

GAMBLE 1.15 1.47  1.94
Cont..
VALUATION RATIO HIGHER THE
BETTER
P/E RATIO
YEAR 2016 2017 2018 HIGHER IS
(TIMES) (TIMES) (TIMES)
FAVORABLE

COLGATE
38.73 47.02 42.72
PROCTER & YEAR 2016 2017 2018
GAMBLE 48.24 60.36  85.80 (%) (%) (%)

COLGATE 2.16 2.11 2.26

PROCTER &
GAMBLE 3.12 2.96 3.50
DIVIDEND YIELD RATIO

ECONOMY ANALYSIS
• Gross Domestic Product
(GDP), Foreign 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.
• The decrease in inflation a
major role in the
development of FMCG
sector from past 3 years
FINDINGS
INDUSTRY ANALYSIS
• The SWOT analysis discloses that
the strength of FMCG sector in
India
• is the low operating cost when
compared to other countries.
• Lower scope of investing in
technology especially of small
scale sectors is the major
weakness of this sector.
• The FMCG sectors have a great
domestic market opportunity
because of the huge population.
• The major threats are tax and
regulatory structure of our
country.
COMPANY ANALYSIS
• There is an increase in short term
provision and trade payable of P&G
that leads to decrease in current ratio.
• Both companies had not borrow the
debt for the working of companies for
all three years..
• Net profit margin of Colgate -
Palmolive decreased due to increase
in total expense. Return on Equity
decreases of Colgate – Palmolive
because of highly increase in
shareholder’s fund specially CWIP.
• EPS of the company P &G is higher,
then the market value of the share
will also be higher in the stock market.
 LEARNINGS
1.

I learned to study the

financial statements of the
companies and I get to know
the financial performance of
the companies.
2.
I learned about the various
ratios that are used to
check the financial 3.
performance and to do the
comparative ratio analysis. I learn how to come to the
conclusion on which company to
invest or which company is
performing well through the core
ratio i.e P/E ratio, ROE, ROCE,
INTRINSIC value evaluation
 CONCLUSION

• As current ratio of P&G LTD decreases because of current labilities

So they should decrease there short term provisions.
• Both the Companies paid more dividends than the previous year
and this results in the fall in the market price of the shares of the
company.
• Higher dividend affected the p/e ratio of both the companies.
• ROCE is more better ratio than ROE for valuation