Fundamental Analysis and Technical Analysis1

Project on
Fundamental and Technical analysis of Top 4 FMCG Companies
SYMBIOSIS INSTITUTE OF BUSINESS
MANAGEMENT-Hyderabad
Submitted to
Dr. Rishi Shukla
Shreya Banerjee
Shahid Hassan

Abstract:
This analysis was done to study the trend in the shares of the Top FMCG
companies. The parameters used to study the trends are Fundamental Analysis
and Technical Analysis. Fundamental analysis contains Ratio’s which are used
to study Growth% ,Gross Profit Margin, Return on equity, earning per share,
price to book ratio, price to sales etc of the companies. In Technical Analysis
we studied the opening price and closing price of the shares, and the trends of
these companies, where it can help us to understand in which company we need
to invest. At last we have seen that ITC has the most upward trend in its share
price and if any investor wants to invest in this company he will get the long
term benefit.
1. Introduction
Fast Moving consumer goods(FMCG) is a sector in which the products can be sold
quickly and at relatively low cost which includes not durable goods like soft drinks,
toys, drugs and many other consumables. The FMCG term was given by MR. Neil
H.Borden in the concept of marketing mix in the year 1965. FMCG has a shorter shelf
life which leads to high consumer demand because the product deteriorates rapidly.
The profit margin made by FMCG products is relatively small so they are generally
sold in large quantities to the producers or suppliers. The cumulative profits on these
products can be substantial.So the FMCG sector is probably the most unique case of
low margin and high volume business.The Top FMCG companies are
HUL,ITC,GODREJ etc..
Hindustan Unilever Limited is a public limited company which was founded in 1932.
The key people of HUL are Harish Manwani(Chairman) and Sanjiv Mehta(CEO &
MD). The products sold by the company are foods,beverages, cleaning agents and
personal care products. The headquarter is located at Mumbai, Maharashtra, India.The
Parent company of HUL is Unilever Plc(67%).The Revenue generated by the
company in the year 2011-12 is Rs 221billion and it is listed in BSE Sensex.
ITC Limited is an Indian Conglomerate company which was founded in 1910.The key
people is Y.C.Deveshwar(chairman). The products sold by the company are Tobacco
hotels, paperboards & speciality papers, packaging,agri-business, packaged foods &
confectionery.The headquarter located in Kolkata, West Bengal.The revenue
generated by the company in the 2013-14 is Rs13,051.89crores.It is listed in BSE
Sensex and NSE .

Godrej is known as Godrej Consumer Products Limited. It is an Indian consumer
goods company. It was founded in the year 2001. The key people are Adi Godrej,
Chairman,Vivek Gambhir, Managing Director .The products sold by the company are
Toilet soaps, hair colour, household insecticides, liquiddetergents, toiletries, Air
Fresheners etc..The headquarters is located at Mumbai, Maharashtra ,India. The
revenue generated by the company in the year 2010-11 was Rs 37.93 billion.It is listed
in NSE Sensex and BSE Sensex both.
Colgate Palmolive Company is an American multinational consumer products
company. It was founded in the year 1806.The key people is Ian M.Cook,CEO.The
products sold by the company are soaps, detergents and oral hygiene
products(including toothpaste and toothbrush).The headquater is located in park
avenue in New York city, New York, United States.The revenue generated by the
company in the year 2013is US $ 17.42 billion . It is a listed in NYSE.
2. Research Design& Methodology
This research has been carried purely on the basis of secondary data. The subject
matter of this study is to pertain to the financial and technical analysis of the 3 FMCG
companies over the years(2014- 2010).To study the Growth and Investment
perspective, to understand and to conclude with conviction, the present secondary
data is been taken from Live Mint and Money Control .
3. Fundamental Analysis
Fundamental analysis is the cornerstone fora company in which investment is to be
done by an investor.This Fundamental Analysis helps an individual to understand
whatis the present situation of the company to those who cannot understand the
balance sheet and profit and loss statements. The biggest part of fundamental analysis
involves in studying the financial statements also known as quantitative analysis,
which involves looking at revenues ,expenses ,assets, liabilities and all other financial
aspects of the company. For knowing the company’s future performance,
Fundamental analysts look at this information and gives his/her opinion.
4. Fundamental Ratio’s:-
The Ratios are very much necessary in order to analysis the investment scenarios.
Fundamental Ratio is comparing the number against previous years, with others
companies, the industry or even the economy in general.
Let us see the Fundamental Analysis and Fundamental Ratio’s by looking in to the
balance sheet and profit and loss statements of ITC, HUL,Godrej Companies.

Balance Sheet and Profit and Loss statements of ITC.
Balance Sheet
Standalone (Rs.inMillion)
Particulars Mar-14 Mar-13 Mar-12 Mar-11 Mar-10
Share Capital 7953.2 7901.8 7818.4 7738.1 3818.2
Share Warrants & Outstandings 0 0 0 0 0
Total Reserves 254667 214976.7 180100.5 151794.6 136825.6
Shareholder'sFunds 262620.2 222878.5 187918.9 159532.7 140643.8
MinorityInterest 0 0 0 0 0
Long-TermBorrowings 0 0 0 0 0
SecuredLoans 0 0 0 0 0
UnsecuredLoans 510 664 773.2 865.8 1077.1
DeferredTax Assets/Liabilities 12969.6 12037.2 8727.2 8018.5 7850.1
OtherLong Term Liabilities 50.9 17.9 129.4 208.2 0
Long TermTrade Payables 0 13.2 0 0 0
Long TermProvisions 1100 1256.2 1071.2 938.2 0
Total Non-CurrentLiabilities 14630.5 13988.5 10701 10030.7 8927.2
CurrentLiabilities 0 0 0 0 0
Trade Payables 19875.9 16689.8 14492.2 13953.1 33923.9
OtherCurrentLiabilities 36318.8 35286.2 33712.7 30677.7 1220.3
Short TermBorrowings 1.4 0 17.7 19.4 0
Short TermProvisions 58847.1 51331.3 43039.5 40124.6 45499.4
Total CurrentLiabilities 115043.2 103307.3 91262.1 84774.8 80643.6
Total Liabilities 392293.9 340174.3 289882 254338.2 141720.9
ASSETS 0 0 0 0 0
Non-CurrentAssets 0 0 0 0 0
Gross Block 185448.7 169443.8 141443.5 127658.6 119678.6
Less:AccumulatedDepreciation 65321.3 57350.4 50451.6 44207.5 38254.6
Less:Impairmentof Assets 0 0 0 0 0
NetBlock 120127.4 112093.4 90991.9 83451.1 81424
Lease AdjustmentA/c 0 0 0 0 0
Capital Workin Progress 22729.4 14728 22692.6 13226 10089.9
Intangible assetsunderdevelopment 227.9 149.9 74.9 108 0
Pre-operative Expensespending 0 0 0 0 0
Assetsintransit 0 0 0 0 0
NonCurrentInvestments 25121.7 20008.6 19532.8 15633 13568.5
Long TermLoans & Advances 14800.2 17279.7 11959.3 11464.7 0
OtherNonCurrentAssets 0 0 0 0 0
Total Non-CurrentAssets 183006.6 164259.6 145251.5 123882.8 105082.4
CurrentAssetsLoans& Advances 0 0 0 0 0
CurrentsInvestments 63112.6 50594.3 43633.1 39913.2 43700.2
Inventories 73595.4 66002 56378.3 52691.7 45490.7
SundryDebtors 21653.6 11633.4 9823.7 8851 8733.5
Cash andBank 32893.7 36150 28189.3 22432.4 11262.8

OtherCurrentAssets 2696.9 2163.6 1411.8 932.6 6490.1
Short TermLoans and Advances 15335.1 9371.4 5194.3 5634.5 9454.9
Total CurrentAssets 209287.3 175914.7 144630.5 130455.4 125132.2
NetCurrentAssets(IncludingCurrentInvestments) 94244.1 72607.4 53368.4 45680.6 44488.6
Total CurrentAssetsExcludingCurrentInvestments 146174.7 125320.4 100997.4 90542.2 81432
MiscellaneousExpenses notwrittenoff 0 0 0 0 0
Total Assets 392293.9 340174.3 289882 254338.2 141720.9
ContingentLiabilities 3615 4665.4 2870.8 2551.7 2851.3
Total Debt 665.4 776.7 891.2 992 1077.1
BookValue 32.95 28.14 23.97 20.55 36.69
AdjustedBookValue 32.95 28.14 23.97 20.55 18.35
Profit and loss
No of Months 12 12 12 12 12
Gross Sales 470686.6 421055.1 352208.9 308192.8 262596
Less:Interdivisional transfers 0 0 0 0 0
Less:SalesReturns 0 0 0 0 0
Less:Excise 138300.6 122042.4 100734.3 93603 81064.1
NetSales 332386 299012.7 251474.6 214589.8 181531.9
EXPENDITURE :
Increase/Decrease inStock -1284.1 -2463.5 -655.9 -2705.5 1752.4
Raw MaterialsConsumed 132847.5 123121.3 96970.2 84312.8 68320.2
Power& Fuel Cost 6131.9 5501.1 4530.2 4210.6 3873.4
Employee Cost 16083.7 13870.1 12576.2 11400.2 9888.3
OtherManufacturingExpenses 13304.8 11570.2 10535.1 9442.9 11202.3
General and AdministrationExpenses 10893.5 12343.9 10496.8 9934 8834
SellingandDistributionExpenses 19823.1 20883.2 19546.2 17012.7 11286.6
MiscellaneousExpenses 9830.4 8000.9 8789.2 6659 5461.6
ExpensesCapitalised 0 0 0 0 0
Total Expenditure 207630.8 192827.2 162788 140266.7 120618.8
PBIDT (Excl OI) 124755.2 106185.5 88686.6 74323.1 60913.1
OtherIncome 11071.4 9671 8253.4 5798.2 6229.9
OperatingProfit 135826.6 115856.5 96940 80121.3 67143
Interest 236.3 1059.1 979.6 879.8 902.8
PBDT 135590.3 114797.4 95960.4 79241.5 66240.2
Depreciation 8999.2 7955.6 6985.1 6559.9 6087.1

ProfitBefore Taxation&Exceptional Items 126591.1 106841.8 88975.3 72681.6 60153.1
Exceptional Income /Expenses 0 0 0 0 0
ProfitBefore Tax 126591.1 106841.8 88975.3 72681.6 60153.1
ProvisionforTax 38739 32657.9 27351.6 22805.5 19543.1
PAT 87852.1 74183.9 61623.7 49876.1 40610
Adj to ProfitAfterTax 0 0 0 0 0
ProfitBalance B/F 37881 19725.9 5486.7 613.1 8581.4
Appropriations 125733.1 93909.8 67110.4 50489.2 49191.4
EquityDividend(%) 600 525 450 445 1000
EarningsPerShare (Rs.) 11.05 9.39 7.88 6.45 10.64
BookValue (Rs.) 32.95 28.14 23.97 20.55 36.69
Cost Of Goods Sold 155063.1 142492.5 114076.6 99923.6 82081.9
CurrentMarket Price 352.95 309.1 226.85 181.45 263.15
Market Capitalization 2806099 2441985 1774027 1403104 1004372
EBIT 115756 98229.9 81701.5 67763.2 54826
Balance Sheet and Profit and Loss of HUL:
Balance Sheet
Share Capital 2162.7 2162.5 2161.5 2159.5 2181.7
Share Warrants & Outstandings 426.9 382.7 357.7 285.4 31.6
Total Reserves 30180.9 24195 32610.1 24150.3 23621.9
UnsecuredLoans 0 0 0 0 0
DeferredTax Assets/Liabilities -1617.3 -2047.8 -2142.4 -2096.6 -2488.2
OtherLong Term Liabilities 2788.2 4762.5 3296.9 2192 0
Long TermTrade Payables 0 0 0 0 0
Long TermProvisions 8386.9 7063.4 6669.5 6638.7 0
Total Non-CurrentLiabilities 9557.8 9778.1 7824 6734.1 -2488.2
Trade Payables 57938.9 51676.9 46229.6 50090.5 52229.9
Short TermBorrowings 0 0 0 0 0
Total CurrentLiabilities 86038.4 76558.6 64487 66200.7 67332.1
Total Liabilities 128366.7 113076.9 107440.3 99530 90679.1

ASSETS 0 0 0 0 0
Gross Block 44428.5 41342 38116.8 37596.2 35819.6
Less:AccumulatedDepreciation 20207.9 18413 16642.1 15905.2 14198.5
NetBlock 24220.6 22929 21474.7 21691 21621.1
Capital Workin Progress 3120.8 2053.2 2051.3 2165.9 2739.6
Intangible assetsunderdevelopment 77 103.2 103.2 721.7 0
NonCurrentInvestments 6361.7 5480.3 1863.1 1205.8 998.4
OtherNonCurrentAssets 6.8 2968.4 0 0 0
Total Non-CurrentAssets 39842 37377 29505 29787.5 25359.1
CurrentsInvestments 24579.5 17826.3 22519 11400.9 11642.4
Inventories 27475.3 25269.9 25166.5 28107.7 21799.3
SundryDebtors 8164.3 8334.8 6789.9 9432.1 6716
Cash andBank 22209.7 17078.9 18300.4 16284.7 18922.1
OtherCurrentAssets 2400.5 2045.3 2196.9 1780 166.2
Short TermLoans and Advances 3695.4 5144.7 2962.6 2737.1 6074
Total CurrentAssets 88524.7 75699.9 77935.3 69742.5 65320
NetCurrentAssets(IncludingCurrentInvestments) 2486.3 -858.7 13448.3 3541.8 -2012.1
Total CurrentAssets ExcludingCurrentInvestments 63945.2 57873.6 55416.3 58341.6 53677.6
MiscellaneousExpensesnotwrittenoff 0 0 0 0 0
Total Assets 128366.7 113076.9 107440.3 99530 90679.1
ContingentLiabilities 8961.3 7688.7 7436.7 7489.6 4684.9
Total Debt 0 0 0 0 0
BookValue 14.95 12.19 16.08 12.18 11.82
Profit and loss
No of Months 12 12 12 12 12
Gross Sales 295579
272835.
9
231810.
9
206399.
4
182202.
7
Less:Excise 15387.7 14733.8 10647.2 9044.3 6964.7
NetSales 280191. 258102. 221163. 197355. 175238

3 1 7 1
EXPENDITURE :
Increase/Decrease inStock -1663.8 -311.3 1287.3 -2905.3 -227.2
Raw MaterialsConsumed
122623.
7
115235.
2 97074.6 87035.2 75440
Power& Fuel Cost 3210.5 3199.1 2852.1 2747.4 2443.4
Employee Cost 14359.5 13183.4 11072.8 9612.6 9203.7
OtherManufacturingExpenses 34194 29747.2 28091.1 24775.8 19678.4
General andAdministrationExpenses 5166.5 5148.5 4307.2 4364.9 3977
MiscellaneousExpenses 8745.8 8226.7 6543 7079.1 6637.6
Total Expenditure
235749.
5
218177.
9
188280.
9
170803.
5
149774.
1
PBIDT (Excl OI) 44441.8 39924.2 32882.8 26551.6 25463.9
OtherIncome 6510.7 6174.3 2813.7 2961.1 3516.9
OperatingProfit 50952.5 46098.5 35696.5 29512.7 28980.8
Interest 360.3 251.5 12.4 2.4 69.8
PBDT 50592.2 45847 35684.1 29510.3 28911
Depreciation 2595.1 2352.2 2182.5 2208.3 1840.3
ProfitBefore Taxation&Exceptional
Items 47997.1 43494.8 33501.6 27302 27070.7
Exceptional Income /Expenses 2286.8 6084 1188.7 2068.3 0
ProvisionforTax 11609 11612.1 7776.3 6310.6 6043.9
PAT 38674.9 37966.7 26914 23059.7 21026.8
ProfitBalance B/F 5352.8 17739.6 12356 8021.9 4763.3
Appropriations 44027.7 55706.3 39270 31081.6 26783.6
EquityDividend(%) 1300 1850 750 650 650
BookValue (Rs.) 14.95 12.19 16.08 12.18 11.82
Cost Of Goods Sold
140193.
7
131617.
7
110999.
5 99395.2 87087.1
Market Capitalization 1305710 1007761
886108.
3
614493.
5
520653.
2
EBIT 41846.7 37572 30700.3 24343.3 23623.6

Balance Sheet and Profit and Loss of GCPL:
Balance Sheet
Share Capital 340.4 340.3 340.3 323.6 308.19
Share Warrants & Outstandings 52.4 35 18 0 0
Total Reserves 29850.8 27235.7 24880.9 15013.4 7966.46
Shareholder'sFunds 30243.6 27611 25239.2 15337 8274.65
SecuredLoans 0 0.5 0.8 1.4 123.98
UnsecuredLoans 0 2601.7 2352.4 0 0
DeferredTax Assets/Liabilities 16.4 45.9 108.6 85.3 63.21
Long TermProvisions 7456.9 5942.5 69 70.1 0
Total Non-CurrentLiabilities 7511.2 8634.8 2593.7 227.9 187.19
Trade Payables 7976.3 6665.3 5310.1 2481.5 1006.99
Short TermBorrowings 8.8 6 21.9 692.5 0
Total Liabilities 52275 46777.3 35793.2 23269.6 11867.66
ASSETS 0 0 0 0 0
Gross Block 15676.8 15291.7 14823.3 14610.5 2737.95
NetBlock 11050.9 11458.3 11814.1 12297 1655.58
Capital Workin Progress 1479.9 1211 121.9 75.5 8.37
Intangible assetsunderdevelopment 0 0 0 0 0
Long TermLoans & Advances 7822.3 6797 1874.6 1294.1 0
OtherNonCurrentAssets 785 771.5 512.1 291.9 0
Total Non-CurrentAssets 41788 34738.3 26257.3 17579.1 6212.77
CurrentsInvestments 1020 1200 0 0 670
Inventories 4935.7 5363.7 4330.4 3063.7 1680.48
SundryDebtors 1392.6 1221.3 942.7 1032.9 331.5
Cash andBank 2052.6 3405.5 3696.3 806.2 1857.04

OtherCurrentAssets 755.6 564 350.1 393.6 60.44
Total CurrentAssets 10487 12039 9535.9 5690.5 5654.89
NetCurrentAssets(IncludingCurrentInvestments) -4033.2 1507.5 1575.6 -2014.2 2249.08
Total CurrentAssetsExcludingCurrentInvestments 9467 10839 9535.9 5690.5 4984.89
MiscellaneousExpensesnotwrittenoff 0 0 0 0 0
Total Assets 52275 46777.3 35793.2 23269.6 11867.66
Total Debt 2855.6 3108.5 2375.8 2724.9 123.98
BookValue 88.69 81.03 74.11 47.39 26.85
Profit and loss
No of Months 12 12 12 12 12
Gross Sales 43003.7 37891.3 31005.3 25512 12943.4
Less:Excise 2205.3 2081.1 1204.5 823 264.59
NetSales 40798.4 35810.2 29800.8 24689 12678.81
EXPENDITURE :
Increase/Decrease inStock 783.6 -1085.5 -817.3 -288.8 -142.12
Raw MaterialsConsumed 18777 18839.4 15627.8 11660 5773.06
Power& Fuel Cost 906.2 829.8 673.4 511.6 328.99
Employee Cost 2004.1 1655.6 1567.4 1335.7 1048.02
OtherManufacturingExpenses 1268.4 1166.4 959.5 1289.8 274.68
General andAdministrationExpenses 697.4 574.8 559.2 537.8 455.06
MiscellaneousExpenses 376.5 416.3 358 229.1 112.22
Total Expenditure 33311.4 29485.2 24233.4 19706.4 10019.41
PBIDT (Excl OI) 7487 6325 5567.4 4982.6 2659.41
OtherIncome 400 506.5 641.6 371.4 506.13
OperatingProfit 7887 6831.5 6209 5354 3165.54
Interest 401.9 179.2 169.6 87.7 36.62
PBDT 7485.1 6652.3 6039.4 5266.3 3128.92
Depreciation 355.2 322.7 258.3 219.8 137.49
ProfitBefore Taxation&Exceptional Items 7129.9 6329.6 5781.1 5046.5 2991.42
Exceptional Income /Expenses 0 0 1809.5 403.1 0
ProvisionforTax 1481.5 1220.2 1546.7 1100 510.26

PAT 5648.4 5109.4 6043.9 4349.6 2481.16
ProfitBalance B/F 10100.9 7698.2 4079.1 1742 981.46
Appropriations 15749.3 12807.6 10123 6091.6 3462.62
EquityDividend(%) 525 500 475 450 425
BookValue (Rs.) 88.69 81.03 74.11 47.39 26.85
Cost Of Goods Sold 21687.3 21324.8 17868.6 13507.3 7150.07
Market Capitalization 289978 265256 163230 118255 80583.76
EBIT 7131.8 6002.3 5309.1 4762.8 2521.92
Balance Sheet and Profit and Loss of Colgate
Balance Sheet
Share Capital 135.99 135.99 135.99 135.99 135.99
Share Warrants & Outstandings 0 0 0 0 0
Total Reserves 5862.79 4759.92 4217.9 3704.54 3125.12
Unsecured Loans 0 0 0 0.5 45.88
DeferredTax Assets/Liabilities -177.84 -224.45 -121 -168.43 -179
Long TermProvisions 248.59 349.01 300.61 268.8 0
Total Non-CurrentLiabilities 78.22 133 187.23 109.53 -133.13
Trade Payables 5099.67 4666.2 3690.13 3785.52 3703.05
Short TermBorrowings 0 0 0 0 0
Total Liabilities 23719.78 20075.58 16511.71 14575.23 12101.41
ASSETS 0 0 0 0 0
Gross Block 9926.98 6735.4 6131.63 5798.32 5345.22
NetBlock 5559.08 2806.63 2544.23 2550.45 2469.48

Capital Workin Progress 1415.05 1019.56 693.83 82.14 61.89
Intangible assetsunderdevelopment 0 0 0 0 0
OtherNonCurrentAssets 20.55 12.46 3.65 4.61 0
Total Non-CurrentAssets 7991.65 4912.95 3938.17 3111.45 2741.37
CurrentsInvestments 0 99.82 0 95.9 0
Inventories 2257.43 1852.98 2176.8 1536.99 1105.54
Sundry Debtors 547.34 812.11 872.66 753.05 97.69
Cash andBank 2869.54 4287.96 3098.05 3951.48 3475.84
OtherCurrentAssets 53.6 75.54 106.63 101.6 54.83
Total CurrentAssets 15728.13 15162.62 12573.54 11463.78 9360.04
NetCurrentAssets(IncludingCurrentInvestments) -1914.65 115.96 602.95 838.61 386.61
Total CurrentAssetsExcludingCurrentInvestments 15728.13 15062.81 12573.54 11367.88 9360.04
MiscellaneousExpensesnotwritten off 0 0 0 0 0
Total Assets 23719.78 20075.58 16511.71 14575.23 12101.41
Total Debt 0 0 0.5 0.5 45.88
BookValue 44.11 36 32.02 28.24 23.98
AdjustedBookValue 44.11 36 32.02 28.24 23.98

Fundamental Analysis and Technical Analysis1

Fundamental Analysis of ITC, HUL and Godrej
Growth %=(Final/Initial)-1
FY2014 FY2013 FY2012 FY2011
ITC 11% 19% 17% 18%
HINDUSTAN UNILIVER 9% 17% 12% 13%
GODREJ CONSUMER CARE PvtLtd. 14% 20% 21% 95%
Gross Profit Margin(Operating profit/netsales)
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 41% 39% 39% 37% 37%
HINDUSTAN UNILIVER 18% 18% 16% 15% 17%
GODREJ CONSUMER CARE PvtLtd. 19% 19% 21% 22% 25%
NetProfit Margin=PAT/Net Sales
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 26% 25% 25% 23% 22%
Return on Equity(PAT/shareholder's fund)
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 33% 33% 33% 31% 29%
Earnings per share
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 11 9 8 6 11
HINDUSTAN UNILIVER 18 18 12 11 10
GODREJ CONSUMER CARE PvtLtd. 17 15 18 13 8

prices to earning ratio=CMP/Earnings per share
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 32 33 29 28 25
Price to Earning to growth ratio=Price to earning ratio/year on year growth%
FY2014 FY2013 FY2012 FY2011
ITC 286 174 167 154
HINDUSTAN UNILIVER 394 159 273 211
GODREJ CONSUMER CARE PvtLtd. 369 257 130 29
price to book ratio=CMP of share /book value per share
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 11 11 9 9 7
employee cost per sales =employee cost / net sales
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 0.048389 0.046386 0.05001 0.053126 0.054471
HINDUSTAN UNILIVER 0.051249 0.051078 0.050066 0.048707 0.052521
GODREJ CONSUMER CARE PvtLtd. 0.049122 0.046233 0.052596 0.054101 0.082659
Price to Sales=current market price / net sales
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 0.001062 0.001034 0.000902 0.000846 0.00145
HINDUSTAN UNILIVER 0.002154 0.001806 0.001853 0.001442 0.001362
GODREJ CONSUMER CARE PvtLtd. 0.020876 0.021761 0.016095 0.0148 0.020621

earning yeild =(NetProfit/MarketCapitalization)*100%
FY2014 FY2013 FY2012 FY2011 FY2010
ITC 3% 3% 3% 4% 4%
Fundamental Analysis Graph (from Ratio’s) :
11%
19% 17% 18%
9%
17%
12% 13%14%
20% 21%
95%
13%
17% 18% 16%
0%
20%
40%
60%
80%
100%
FY2014 FY2013 FY2012 FY2011
Growth %
ITC HINDUSTAN UNILIVER
GODREJ CONSUMER CARE Pvt Ltd. COLGATE
41%
39% 39% 37% 37%
18% 18% 16% 15% 17%
19% 19% 21% 22%
25%
20%
22% 23% 24%
27%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
FY2014 FY2013 FY2012 FY2011 FY2010
Growth ProfitMargin

26%
25% 25%
23% 22%
14% 15%
12% 12% 12%
14% 14%
20%
18%
20%
15% 16% 17% 18%
22%
0%
5%
10%
15%
20%
25%
30%
FY2014 FY2013 FY2012 FY2011 FY2010
Net ProfitMargin
33% 33% 33% 31% 29%
118%
142%
77%
87% 81%
19% 19% 24% 28% 30%
90%
101% 103% 105%
130%
0%
20%
40%
60%
80%
100%
120%
140%
160%
FY2014 FY2013 FY2012 FY2011 FY2010
Return on equity

11 9 8 6
11
18 18
12
11 10
17 15
18
13
8
40
37
33
30 31
0
5
10
15
20
25
30
35
40
45
FY2014 FY2013 FY2012 FY2011 FY2010
Earnings per share
32 33
29 28
25
34
27
33
27 25
51 52
27 27
3235 34 34
28
22
0
10
20
30
40
50
60
FY2014 FY2013 FY2012 FY2011 FY2010
Price to earnings ratio

286
174 167 154
394
159
273
211
369
257
130
29
264
195 191
167
0
50
100
150
200
250
300
350
400
450
FY2014 FY2013 FY2012 FY2011
price to earnings to growth ratio
11 11 9 9 7
40
38
25
23
20
10 10
6 8
10
31
35 35
29 28
0
5
10
15
20
25
30
35
40
45
FY2014 FY2013 FY2012 FY2011 FY2010
Price to book ratio

Concepts and Analysis
1. Earnings
The key element all investors look after is earnings. Before investing in a company
you want to know how much the company is making in profits. Future earnings are a
key factor as the future prospects of the company's business and potential growth
opportunities are determinants of the stock price.
From the Earnings per share graph we can say that EPS is good in case of Colgate,
when compared with other 3 companies.
2. Profit Margins
Amount of earnings do not tell the full story, increasing earnings are good but if the
cost increases more than revenues then the profit margin is not improving. The profit
margin measures how much the company keeps in earnings out of every Rupee of
their revenues. This measure is therefore very useful for comparing similar
companies, within the same industry.Higher profit margin indicates that the company
has better control over its costs than its competitors.
From the Net profit Margin graph, we can say that Net Profit Margin is good in case
of ITC Company.
3. Return on Equity (ROE)
Return of equity (ROE) is a financial ratio that does not account for the stock price.
Since it ignores the price entirely it is by many thought of as THE most important
financial measure. It can basically be thought of as the parent ratio that always needs
to be considered.
3% 3%
3% 4%
4%
3%
4%
3%
4%
4%
2% 2%
4% 4%
3%3% 3% 3%
4%
5%
0%
1%
2%
3%
4%
5%
FY2014 FY2013 FY2012 FY2011 FY2010
Earning Yeild

This ratio is a measure of how efficient a company is in generating its profits.
From the Return on Equity graph, we can say that Return on Equity is good in
case of ITC .
4. Price-to-Earnings (P/E)
A high P/E indicates that the stock is priced relatively high to its earnings, and
companies with higher P/E therefore seem more expensive..
This ratio does not tell the full story since it does not account for growth. Normally,
companies with high earnings growth are traded at higher P/E values than companies
with more moderate growth rate. Accordingly, if the company is growing rapidly and
is expected to maintain its growth in the future this current market price might not
seem so expensive.
From the graph of P/E Godrej P/E ratio has increased so much whereas Colgate and
ITC has almost consistent trend.
5.Earnings Yield:
As per the graph the Earning yield is good in case ITC.
6. Price-to-Book(P/B)
A price-to-book (P/B) ratio is used to compare a stock's market value to its book
value. This ratio gives certain idea of whether you are paying too high price for the
stock as it denotes what would be the residual value if the company went bankrupt
today.According to the graph Hindustan Uniliver is good.
From all these above concepts ,Investor can choose ITC for the long term
benefits which wouldarrive in the near future.
4.Technical Analysis
Technical analysis studies supply and demand in a market in order to determine what
direction or trend will continue in the future, in other words ,technical analysis
attempts to understand the what emotions markets has?
The Secondary Data is taken from Bombay Stock Exchange.
Let us examine the Technical Analysis of ITC,HUL,Godrej and Colgate with the
use of Share Markets( from 1st April 2014 to 5th March 2015).
The Stock Market Data is Attached in the Annexure 1 .
With the help of these data we will study the technical analysis by analysing the
trend of the shares in the stock market.

Graph ITC
Log Return Of ITC:
0
50
100
150
200
250
300
350
400
450
0
1000000
2000000
3000000
4000000
5000000
6000000
1-Apr-14
10-Apr-14
22-Apr-14
2-May-14
12-May-14
20-May-14
28-May-14
5-Jun-14
13-Jun-14
23-Jun-14
1-Jul-14
9-Jul-14
17-Jul-14
25-Jul-14
5-Aug-14
13-Aug-14
22-Aug-14
2-Sep-14
10-Sep-14
18-Sep-14
26-Sep-14
9-Oct-14
20-Oct-14
29-Oct-14
10-Nov-14
18-Nov-14
26-Nov-14
4-Dec-14
12-Dec-14
22-Dec-14
31-Dec-14
8-Jan-15
16-Jan-15
27-Jan-15
4-Feb-15
12-Feb-15
23-Feb-15
2-Mar-15
ITC
No.of Shares Open Price High Price Low Price Close Price
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
Log Return

Graph of GCPL:
Log Returns of GCPL:
0
200
400
600
800
1000
1200
1400
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1-Apr-14
11-Apr-14
25-Apr-14
7-May-14
16-May-14
27-May-14
5-Jun-14
16-Jun-14
25-Jun-14
4-Jul-14
15-Jul-14
24-Jul-14
5-Aug-14
14-Aug-14
26-Aug-14
5-Sep-14
16-Sep-14
25-Sep-14
9-Oct-14
21-Oct-14
31-Oct-14
13-Nov-14
24-Nov-14
3-Dec-14
12-Dec-14
23-Dec-14
2-Jan-15
13-Jan-15
22-Jan-15
3-Feb-15
12-Feb-15
24-Feb-15
4-Mar-15
GCPL
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
Log Return

Graph of HUL:
Log Return of HUL:
0
200
400
600
800
1000
1200
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1-Apr-14
10-Apr-14
22-Apr-14
2-May-14
12-May-14
20-May-14
28-May-14
5-Jun-14
13-Jun-14
23-Jun-14
1-Jul-14
9-Jul-14
17-Jul-14
25-Jul-14
5-Aug-14
13-Aug-14
22-Aug-14
2-Sep-14
10-Sep-14
18-Sep-14
26-Sep-14
9-Oct-14
20-Oct-14
29-Oct-14
10-Nov-14
18-Nov-14
26-Nov-14
4-Dec-14
12-Dec-14
22-Dec-14
31-Dec-14
8-Jan-15
16-Jan-15
27-Jan-15
4-Feb-15
12-Feb-15
23-Feb-15
2-Mar-15
HUL
-10%
-5%
0%
5%
10%
Log Return

Graph of Colgate:
Log Return of Colgate
0
500
1000
1500
2000
2500
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
1-Apr-14
11-Apr-14
25-Apr-14
7-May-14
16-May-14
27-May-14
5-Jun-14
16-Jun-14
25-Jun-14
4-Jul-14
15-Jul-14
24-Jul-14
5-Aug-14
14-Aug-14
26-Aug-14
5-Sep-14
16-Sep-14
25-Sep-14
9-Oct-14
21-Oct-14
31-Oct-14
13-Nov-14
24-Nov-14
3-Dec-14
12-Dec-14
23-Dec-14
2-Jan-15
13-Jan-15
22-Jan-15
3-Feb-15
12-Feb-15
24-Feb-15
4-Mar-15
Chart Title
-6%
-4%
-2%
0%
2%
4%
6%
8%
Log Return

Conclusion:
ITC:
1)The Volume is high and high price of the share is 399.55 on 25th Feb 2015,which is
the highest price among the others.
2)We can find a mostly a horizontal trend with a very slow upward trend.
3)The log return value chart it is varying majorly between 2% and -2%
4)From the Analysis ,we can say that , it is good to invest ,if we seek for long term
investment.
GCPL:
1)From the candle chart we can say that the Volume and high price of the share is
1203.75 on 5st March 2015,which is the highest price among the others.
2)We can find a slight upward trend with a horizontal trend till 21th Aug 2014
3) We can see horizontal trend and then slight upward trend from 21st Aug 2014 to
5th march 2015
4)The log return value chart it is majorly varying between 2% and -2%
investment.
Colgate:
1)From the candle chart we can say that the Volume and high price of the share is
2068.65 on 5st March 2015,which is the highest price among the others.
2)We can find a slight upward trend with a horizontal trend till 24th July 2014
3) We can see slight downward trend and quickly a horizontal trend and then slight
upward trend from 24st July 2014 to 5th march 2015
4)The log return value chart it is majorly varying between 2% and -2%
investment.

HUL:
1) From the candle chart we can say that the Volume and high price of the share is 939
on 5th March 2015,which is the highest price among the others.
2) We can see mostly a horizontal trend with a upward trend slightly till 6th jan 2015.
3)From 6th jan 2015 there is a upward trend and then it became horizontal trend.
investment.7
Online International, Reviewed & Indexed Monthly Journal www.raijmr.com
9 Online International, Reviewed & Indexed Monthly Journal www.raijmr.com
Refrences:
 http://www.itcportal.com/about-itc/profile/index.aspx
 http://www.colgate.co.in/app/Colgate/IN/HomePage.cvsp
 http://www.godrejcp.com/about-us.aspx
 http://www.hul.co.in/aboutus/
 http://www.moneycontrol.com/
 http://www.bseindia.com/
 http://www.livemint.com/

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