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CHAPTER 1 – INTRODUCTION

1.1 - OBJECTIVE OF THE STUDY

 To conduct fundamental analysis for MARUTI SUZUKI LIMITED.


 To conduct quantitative analysis of the company.
 To conduct qualitative analysis of the company.
 To forecast the future performance of the company.
 To recognize the problems of the company and recommend remedial methods to
overcome the problem.

1.2 – BACKGROUND OF THE COMPANY


Marico Limited is an Indian consumer goods company providing consumer products and
services in the areas of Health and Beauty based in Mumbai.
During 2015, the company generated a turnover of Rs. 5,733 crores. In 2018 the company
generated a turnover of ₹.6300 crores. Marico has 8 factories in India located at Pondicherry,
Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib.
In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary.
Its manufacturing facility is located at Shirirchala, in Dhaka Division.817813.
Type: - Public company (BSE: 531642)
Industry: - Consumer goods
Predecessor: - Bombay Oil Industries Limited (BOIL)
Founded: - Bombay, Maharashtra, India (2 April 1990; 28 years ago)
Founder: - Harsh Mariwala
Headquarters: - Grande Palladium, 175, CST Road, Kalina, Santacruz, Mumbai, Maharashtra,
India
Area served: - Worldwide
Key people: - Saugata Gupta
Products: - Edible Oil, Hair Oils, Skin Care, Fabric Care etc.
Revenue: - ₹7,968.3 crore (US$1.1 billion)
Number of employees: - 2402 (2016)
Website: - www.marico.com

1.3 – RESEARCH METHODOLOGY


Research methodology is a way to systematically solve the research problem. It may have
understood as a science of studying how research is done scientifically. It is the description,
explanation and justification of various methods of conducting research. In it we understand the
various steps that are generally adopted by a researcher in studying his research problem along
with the logic behind them.
SAMPLE SELECTION CRITERIA
The FMCG companies which satisfied the following criteria have been selected. The
criteria are:
o FMCG companies listed in security market.
o Availability of data for a period of three years.
o Accounting year must be from April to March.

SOURCES OF DATA
The study is based on the secondary data. The audited financial statements of the companies are
the main source of data. The major data sources used in this study are:
 Annual Reports of Companies
 Websites
 Journals
 Magazines
 Reference Books

TOOLS USED FOR ANALYSIS


1. RATIOS

a) Operating Profit Margin (OPM)

The operating profit margin indicates the profit of the company after depreciation, but before
interest and taxes are deducted from the earnings.
Operating profit margin = Operating profit / Revenue
= EBIT / Revenue x 100

b) Net Profit Margin (NPM)

Net profit margin measures the amount of profits available to shareholders after depreciation,
interest and taxes are deducted from the earnings.
Net profit margin = Net profit / Revenue x 100
c) Earnings per Share (EPS)

This ratio indicates the profits available to equity shareholders per share, this helps to determine
the market price of equity shares.
Earnings per Share = Profit after Tax / No. of equity shares.
d) Dividend per Share (DPS)

The amount of profits distributed to shareholders per share is known as DPS and may be
calculated as follows:
Dividend per Share = Amount declared as dividend / No. of equity shares.
e) Dividend Payout Ratio (DP Ratio)

The DP ratio is the ratio between the DPS and EPS of the firm, i.e., it refers to the proportion of
the EPS which has been distributed by the company as dividends.
Dividend payout ratio may be calculated as follows:

Dividend Payout Ratio = DPS / EPS x 100

f) Price to Earnings Ratio (PE Ratio)

The PE Ratio indicates the expectations of the equity investors about the earnings of the firm.
The PE ratio is one of the most widely used measures of financial analysis in practice and is
calculated as follows.
Price to Earnings ratio = Market Price per Share /Earnings per Share.

g) Return on Equity (RoE)


The RoE examines profitability from the perspective of the equity investors by relating profits
available for the equity shareholders with the book value of the equity investment.
Return on Equity = Net Income/Shareholder's fund

h) Earning Yield Ratio

The yield is defined as the rate of return on the amount invested. With the reference to equity
shares, the yield may be defined as the rate of return on the market piece of equity shares.
Earnings Yield Ratio = Earnings per share / Market price per share.
i) Price to Book Value Ratio

The book value of a share provides a floor below which the market price of a share is not
expected to fall. Shares which have lower PB Ratio may be considered as a ‘safer’ investment
and vice versa.
Price to Book Ratio = Market price per share/Book value per share.

2. INTRINSIC VALUE

The actual value of a company or an asset based on an underlying perception of its true value
including all aspects of business in terms of both tangible and intangible factors. The value may
or may not be same as the current market value. The true economic worth of the share is its
intrinsic value. The fundamental analyst finds out intrinsic value of a share by using the formula:
Intrinsic Value = Earnings per share x Price to Earnings ratio.

3. SWOT ANALYSIS

SWOT Analysis is the analysis of strength, weakness, opportunity, and threats of the
organization. The company’s success is mainly depending on the accurate managing of SWOT.
Strength is to be maximized, weakness is to be reduced and should concentrated on opportunities
and avoid threats.

4. TOOLS USED FOR PRESENTATION

1. Bar diagram
2. Tabular presentation

1.4 – LITERATURE REVIEW


FUNDAMENTAL ANALYSIS
Fundamental analysis is the study of economic, industry, and company conditions in an
effort to determine the value of a company’s share. Fundamental analysis typically
focuses on key statistics in a company’s financial statements to determine if the stock
price is correctly valued. After determining the condition and outlook of the economy,
the industry, and the company, the fundamental analyst determines if the company’s
stock is overvalued, undervalued or correctly valued.
Fundamental analysis covers various financial and non-financial aspects such as
evaluation of the economy and industry scenario, company management and company
financial position and so on.

FUNDAMENTAL ANALAYSIS
1. ECONOMY ANALYSIS –
• GNP
• GDP
• INFLATION RATE
• INTEREST RATE
• EXCHANGE RATE
• FOREX RESERVES
• GOVERNMENT RECEIPTS
• GOVERNMENT EXPENDITURE
2. INDUSTRY ANALYSIS –
• GROWTH RATE
• SWOT ANALYSIS
3. COMPANY ANALYSIS -
• GPM, NPM, OPM
• EPS, DPS, DP RATIO, PE RATIO, ROE
• EARNINGS YIELD RATIO
• DIVIDEND YIELD RATIO
• PRICE TO BOOKVALUE RATIO
• INTRINSIC VALUE
Three phases of fundamental analysis are: -
Three phase of the fundamental analysis are:
o Understanding of the Macro Economic environment and developments
(Economic analysis)
o Analyzing the prospectus of the industry to which the firm belongs
(Industry analysis)
o Assessing the performance of the company (Company analysis).

AUTHORS REVIEW
A brief review of literature would help the researcher, reader and other research scholars
in gaining an insight into the studies, which were made in areas related to the subject of
this study. The findings of some of the studies are briefly summarized as follows.
1. SANDIP MUKHERJI, MANJEET, AND KIM (1997)
Fundamental Analysis of Korean Stock Returns” in their article examined about the
relation between stock return and fundamental variables in Korean firm annual stock
returns during the period of 1982-83. The study found that stock returns are positively
related to book-market ratio, sales-price ratio and debt-equity ratio. It is also found that
return is negatively related to firm size and not significantly related to earnings price
ratio. They suggested that book-market and sales-price ratios are more efficient indicators than
the earnings-price and the debt-equity ratio.
2. JIANG XIA (2000)
“Fundamental Analysis of Price on Chinese Steel Products” in his paper considered five
fundamental factors such as price index of steel product, Gross National Product,
exchange rates, interest rates, imports and exports are influencing over the price of steel
products. A hedonic function model was applied which reflects the relation between
prices of varieties of heterogeneous goods and empirical tests applied by using Chinese
annual data for the year 1978. Study found that the above said variables are influencing
at 62 per cent over the steel price. The price index and Gross Domestic Product have
positive significant relation which depicts that higher the price index and Gross
Domestic Product, higher the steel price. The exchange rate have negative impact over
the steel price, the interest rate does not have influence over the steel price and finally
it is found that import and export influence the steel price of the product.
3. MEHMET SARAC (2007)
“Does Fundamental Analysis Matter for Foreign Investors? An Empirical Analysis of
Foreign Investment in the Istanbul Stock Exchange” The paper analyzed about the buy
and sell decisions of foreign investors are related to financial indicators of the firms
listed on the Istanbul Stock Exchange. Based on the monthly data from January 2000 to
April 2006, the study found that the operating leverage, profitability and solvency are
the most important factors while investing in the manufacturing stocks. Foreign
investors consider solvency is a major factor whereas, local investors consider the
profitability of a firm.
4. JEFFERY ABARBANELL AND BRAIN BUSHEE (1977)
“Fundamental Analysis, Future Earnings and Stock Prices”, in their study examined the
relationship between accounting based fundamental signals and future earnings of
security prices. They applied multiple regression analysis to analyze the data. The study
found that investors are not completely relying on the information given by the analyst.
They also found that the variables such as Gross Domestic Product, inflation, firm specific
variables are prior earnings, expected earnings growth, relation between
fundamental signal and future earnings, revisions and forecast errors are most
influencing factors in fundamental analysis.
5. VIYYANNA RAO AND NIRMALA DAITA (2012)
“Fundamental Factors Influencing Investments in Mutual Funds the EIC Approach: A
Case Study of RCAMI” the study focused on fundamental analysis of mutual funds in
India. The macro economic variables taken for this study, viz., RBI Bank Rate,
Domestic savings, Gross Domestic Capital Formation, Money Supply, Gross National
Product, Wholesale Price Index, and Forex Reserves. Descriptive Statistics,
Correlation, Regression, Augmented Dickey Fuller test and Granger test has been
applied. The economic analysis results found that all the variables were positively
correlated with each other except bank rate and Wholesale price index. The industry
analysis shows that Reliance, HDFC, ICICI Prudential, UTI and Birla Sun Life stood
in the top five positions and its contribution as 57.02 per cent of the total assets. The
remaining 33 players shared the rest of the 42.98 per cent of the industry. The company
analysis results reveal that price earnings ratio and price to book ratio, fund size, market
capitalization and Net assets value were found to be having a significant influence on
the return of the funds.

CHAPTER 3 – DATA ANALYSIS AND FINDING


3.1 - ECONOMY ANALYSIS
Economic analysis deals with the analysis of operating in the overall economy. In
security analysis, the expected course of the economy must be inquired into because
overall economic conditions and economic activities affect corporate profits and
investors’ expectations and thereby affect the security prices in decisions. Investors
consider those variables of the economy, which affect the performance of the company
in which they tend to invest.
The economic variables used in this study such are:
 Gross National Product (GNP)
 Gross Domestic Product (GDP)
 Inflation Rates
 Interest Rates
 Foreign Exchange Reserves
 Government Receipts and Expenditure

ECONOMY ANALYSIS
TABLE 1

Yea GD GN Inflatio Interes Exchang Forex Govt. Govt.


r P P n t e Reserve Receipts Expenditures
(%) (%) (%) Rates Rate ($ (₹ Cr) (₹ Cr)
(%) (₹ / $) Million)
201 5.1 4.8 9.3 7.25 61.83 295503. 2030378.2 2332765.74
3 6 5

201 6.9 6.8 10.9 8.00 62.83 319997. 2324512.9 2647312.19


4 5 7

201 7.3 7.4 6.4 6.75 66.16 352365. 2314849.0 3152934.00


5 7 0

Source: rbi.org.in, data.worldbank.org, and other internet sources


INTERPRETATION
The Table 1 represents the major economic indicators of our country which helps to the
investors to make economic analysis towards investments. Gross Domestic Product
indicates the rate of growth of the economy. The GDP of India during the period of
2013 to 2015 is increasing, which means the economy is growing. The highest growth
rate of GDP is more favorable to the stock market.
Gross National Product represents the aggregate value of goods and a service produced
in a country which shows an increasing trend at the growth rate of 4.8% in 2013, 6.8%
in 2014 and 7.4% in 2015, it represents the economic condition of a country which is
going upward.
During the year 2010 inflation rate shows as 10.9 per cent which was increased due to
the shortfall of domestic production vis-à-vis demand and hardening of international
prices, prices of primary commodities, especially rise in prices of food products.
However, in 2015 the inflation rate is reduced to 6.4 per cent.
The Interest rate is increased which helps to encourage the saving habit of an individual.
Interest rates on deposits rate was highest in 2014 among the study period, it was 8 per
cent. Interest rate suddenly downed to 6.75 in 2015.
The exchange rate indicates the stability of economic growth of a country. The
exchange rate shows fluctuating trend from 61.83 to 66.16. It’s clearly shows that the
value of rupee is decreasing when comparing to the US dollar. Foreign exchange reserve
helps to preserve currency stability and reduce economic distresses. Foreign exchange
reserve shows high trend during the period of 2013-15.
The government expenditure exceeds over the receipts, the receipts and there is a small
difference in between these two; in future it can be controllable due to effective money
to develop our infrastructural activities economic policy. The government spent more
because; once the infrastructure is developed it leads to potential economic growth.

3.2 - INDUSTRY ANALYSIS


An industry described as a homogeneous group of companies. It may be defined as a
group of firms producing reasonably similar products that serve the same need of a
common set of buyers. The profitability of an industry depends upon its stage of growth.
These externalities depend on the availabilities of inputs power and interrelations
between the economy and industry. In India, companies like HUL, ITC, Marico have
been a dominant force in the FMCG sector well supported by relatively less competition
and high entry barriers (import duty was high). The industry analysis moves from
macroeconomic analysis to microeconomic analysis. The process normally includes
conducting thorough study of its three sub-heads, namely structural framework, industry
lifecycle and competitive environment.
In this study the growth of consumer goods industry is analyzed by comparing sales
volume, expenditure, profit and income of the industry. A SWOT analysis of the FMCG
industry also done in this study.

GROWTH OF FMCG INDUSTRY IN INDIA


India’s FMCG sector reported steady sales Compound Annual Growth Rate of 11.2 per
cent over the financial year 2000-11 on the back of strong annual volume growth of 8.5
per cent. Growth is being driven by increasing consumption led by a rise in incomes,
changing lifestyles and favorable demographics. The industry is poised to grow at
Compound Annual Growth Rate between 10 to 12 per cent annually. The annual profit
of FMCG sector $14.74 billion. Total market size in excess of US $30 billion in the
year 2011. The market growth rate of FMCG industry in rural and urban areas is 40 per
cent and 25 per cent, respectively. Average Indian spending on groceries and personal
care is 48 per cent. (Groceries 40 per cent and personal care 8 per cent). According to
FICCI-Techno-park report, the implementation of the proposed GST and opening of
FDI is expected to fuel growth of industry size to $47 billion (₹2,25,000 Crore) by 2013
and $95 billion (₹4,56,000 Crore) by 201814. The growth of the FMCG sector is
presented in the Table 2 represents the total income, expenditure, sales and Profit earned
after tax. Sales and Profit indicate the growth of the sector. FMCG industry shows that
total income and sales has increased over the years except during the last year. The
profit after tax is also showing an increasing trend which represents the industry has
attained maximum profit during the study period. Hence, the FMCG sector has high
potential growth; the investors have also attained a high rate of return on their
investments.
SWOT ANALYSIS OF FMCG INDUSTRY
 Strengths
1. Lower operational costs.
2. Existence of recognized distribution networks in both urban and rural areas.
3. Existence of eminent brands in FMCG sector.
4. Favorable Government policy and Foreign.
5. Direct Investment is permitted.

 Weaknesses
1. Lower scope of investing in technology of small scale sectors.
A fundamental Analysis on Three FMCG Companies
2. Low export levels.
3. Illegal duplicate labels of the established brands of FMCG product reduced the
scope in rural and semi-urban market.
 Opportunities
1. Untapped rural market.
2. Increasing income levels which lead to increase in purchasing power of
consumers.
3. Huge domestic market - a population of over one billion.
4. Export potential.
5. High consumer goods spending.
6. Lower price and smaller packs which increases the trading volume.
 Threats
1. Removal of import restrictions resulting in replacing of domestic brands.
2. Slowdown in rural demand and mostly depends upon monsoon.
3. Tax and regulatory structure.

3.3 - COMPANY ANALYSIS


The investor should identify the leading competitive companies in each industry since
this is where good investment values will be found. Company analysis attempts to study
the various factors affecting and indicating the performance of a company, such as,
competitive position of the company, quality of management, technology, product
analysis, brand image and market share, marketing strategy, etc.
Company financial analysis is the process of identifying the financial strengths and
weaknesses of a company by properly establishing the relationship between the items
of balance sheet, profit and loss account and other financial statements. The most
powerful tools of financial analysis is ratio analysis. This study used the different ratios
and intrinsic valuation model.
TABLE 2
OPERATING PROFIT MARGIN (OPM) OF MARICO LTD
COMPANY 2013 2014 2015
MARICO LTD 11.9 14.6 14.2

Source: Profit & Loss statements of MARICO. LTD


CHART 1
OPERATING PROFIT MARGIN OF MARICO LTD
OPERATING PROFIT MARGIN = EBIT / REVENUE X 100

MARICO LTD
16

14

12

10

0
2013 2014 2015
MARICO LTD

INTERPRETATION
When analyzing the operating profit margin of the Marico Ltd. it shows that the
company reached at its highest operating profit in 2014. In 2015 it gained 14.2
of operating profit. It reveals that the company is on its way to achieve the
shareholders’ objectives.

TABLE 3
NET PROFIT MARGIN (NPM) OF MARICO LTD
NET PROFIT MARGIN = NET PROFIT / REVENUE X 100
COMPANY 2013 2014 2015
MARICO LTD 8.54 10.23 9.90

Source: Profit & Loss statements of MARICO. LTD


CHART 2
NET PROFIT MARGIN OF MARICO LTD

MARICO LTD
10.5

10

9.5

8.5

7.5
2013 2014 2015
MARICO LTD

INTERPRETATION
In the case of Marico Ltd., the net profit margin indicates a fluctuating trend. The
company has a sharp decline in the last year when compared to the previous year.

TABLE 4
EARNING PER SHARE - EPS (BASIC) OF MARICO LTD
EARNINGS PER SHARE = PROFIT AFTER TAX / NO. OF EQUITY
COMPANY 2013 2014 2015
MARICO LTD 6.18 7.53 8.89

Source: Profit & Loss statements of MARICO. LTD


CHART 3
EARNING PER SHARE - EPS (BASIC) OF MARICO LTD

MARICO.LTD
10
9
8
7
6
5
4
3
2
1
0
2013 2014 2015
MARICO.LTD

INTERPRETATION
When compared to the Earnings per share of the other companies it had a low
EPS in the period. However, Marico also shows the increasing trend in their
earnings per share. It will be a hope to their shareholders.

TABLE 5
EARNING PER SHARE - EPS (DILUTED) OF MARICO.LTD
EARNINGS PER SHARE = PROFIT AFTER TAX / NO. OF EQUITY SHARES + OTHER
CONVERTIBLE INSTRUMENTS
COMPANY 2013 2014 2015

MARICO LTD 6.17 7.53 8.89

Source: Profit & Loss statements of MARICO. LTD


CHART 4
EARNING PER SHARE - EPS (DILUTED) OF MARICO.LTD

MARICO.LTD
10
9
8
7
6
5
4
3
2
1
0
2013 2014 2015
MARICO.LTD

INTERPRETATION
There are no fluctuations in the basic earnings per share of the Marico Ltd. in the
recent two years. That’s means there was no convertible securities in the firm
during the years. In the first year Marico had a slight different in the basic and
diluted earnings per share of the company.

TABLE 6
DIVIDEND PER SHARE (DPS) OF MARICO.LTD
DIVIDEND PER SHARE = AMOUNT DECLARED AS DIVIDEND / NO. OF EQUITY
SHARES.
COMPANY 2013 2014 2015

MARICO LTD 1.00 4.00 2.50

Source: Annual Reports, http://moneycontrol.com


# including special dividends
CHART 5
DIVIDEND PER SHARE (DPS) OF MARICO.LTD

MARICO.LTD
4.5

3.5

2.5

1.5

0.5

0
2013 2014 2015
MARICO.LTD

INTERPRETATION
In 2013 DPS of the company was very low. In the following years it shows a
rapid increase in the dividend paid to the shareholders. But in the 2015 it again
fallen.

TABLE 7
DIVIDEND PAYOUT RATIO OF MARICO.LTD
DIVIDEND PAYOUT RATIO = DPS / EPS X 100
COMPANY 2013 2014 2015

MARICO LTD 16.18 53.12 28.12

Source: Profit & Loss statements of MARICO.LTD, Annual Reports


CHART 6
DIVIDEND PAYOUT RATIO OF MARICO.LTD

MARICO.LTD
60

50

40

30

20

10

0
2013 2014 2015
MARICO.LTD

INTERPRETATION
DPR of the Marico indicates a greater fluctuation in the amount dividend
distributed to the shareholders during this period. This fluctuation is not good
for the investors.

TABLE 8
RETURN ON EQUITY (ROE) OF MARICO.LTD
RETURN ON EQUITY = NET INCOME/SHAREHOLDERS FUND
COMPANY 2013 2014 2015

MARICO LTD 0.20 0.36 0.31

Source: Profit & Loss statements of MARICO.LTD, Balance Sheet of MARICO.LTD


CHART 7
RETURN ON EQUITY (ROE) OF MARICO.LTD

MARICO.LTD
0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2013 2014 2015
MARICO.LTD

INTERPRETATION
The return on equity of Marico was faced a rapid growth in the 2014. But it was
declined in the next year. This fluctuating RoE is not favorable to the
shareholders.

TABLE 9
EARNING YIELD RATIO OF MARICO.LTD
EARNINGS YIELD RATIO = EARNINGS PER SHARE / MARKET PRICE PER SHARE.
COMPANY 2013 2014 2015

MARICO LTD 0.0258 0.0227 0.0193

Source: Profit & Loss statements of MARICO.LTD, http://nseindia.com, http://bseindia.com,


http://monecontrol.com
Note: Market prices of shares are highest in the year.
CHART 8
EARNING YIELD RATIO OF MARICO.LTD

MARICO.LTD
0.03

0.03

0.02

0.02

0.01

0.01

0
2013 2014 2015
MARICO.LTD

INTERPRETATION
Earning yield ratio of the Marico is showing a declining trend. In 2013 Marico
was highest among companies. But it was started falling in the following years.

TABLE 10
PRICE TO BOOK VALUE RATIO (P/B RATIO) OF MARICO.LTD
PRICE TO BOOK RATIO = MARKET PRICE PER SHARE/BOOK VALUE PER SHARE.
COMPANY 2013 2014 2015

MARICO LTD 7.74 10.83 15.13

Source: Profit & Loss statement of MARICO.LTD, Balance sheet of the MARICO.LTD,
money.rediff.com
CHART 9
PRICE TO BOOK VALUE RATIO (P/B RATIO) OF MARICO.LTD

MARICO LTD
16

14

12

10

0
2013 2014 2015
MARICO LTD

INTERPRETATION
The above table and graph shows that PB Ratio of Marico Ltd. is increasing in
every year. It was 7.74 in 2013 to 15.13 in 2015.

TABLE 11
PRICE TO EARNING (P/E) RATIO OF MARICO.LTD
PRICE TO EARNINGS RATIO = MARKET PRICE PER SHARE /EARNINGS PER SHARE.
COMPANY 2013 2014 2015

MARICO LTD 38.67 44.00 51.07

Source: Profit & Loss statements of MARICO.LTD


CHART 10
PRICE TO EARNING (P/E) RATIO OF MARICO.LTD

MARICO.LTD
60

50

40

30

20

10

0
2013 2014 2015
MARICO.LTD

INTERPRETATION
Marico shows a high performance in the PE Ratio. They were in last position
among others in the first year. But in the last year Marico is at the first position.
This trend is a good for the investors.

TABLE 12
INTRINSIC VALUE OF MARICO.LTD
INTRINSIC VALUE = EARNINGS PER SHARE X PRICE TO EARNINGS RATIO.
COMPANY 2013 2014 2015

MARICO LTD 238.98 331.32 459.61

Source: Profit & Loss statements of MARICO.LTD


CHART 11
INTRINSIC VALUE OF THREE COMPANIES

MARICO.LTD
500
450
400
350
300
250
200
150
100
50
0
2013 2014 2015
MARICO.LTD

INTERPRETATION
The intrinsic value of share of Marico Ltd. is lower than the market price of share
in 2013. There is no difference between market price and intrinsic value in the
following years.

CHAPTER 4 – CONCLUSION
LIMITATIONS OF THE STUDY
 The study is confined only to the listed FMCG companies
 External factors may adversely affect the industry as well as its share price. E.g.

 Government policies, competition, tax imposition, global market, FDI/FII etc.


Hence, the movement of stock price is not 100 per cent predictable.
 The present study uses ratios as an important tool of analysis which itself has a
number of limitations on its applicability.

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