Investor Behavior toward

Stock Market and

Fundamental & Technical
analysis of FMCG industry
Presented by:
Nurshid
Alam

At: Karvy Stock Broking Pvt.

Ltd.
 Objective of Project
• To know the perception of people
towards stock market.
• Analyze the FMCG industry for the
investment purpose.
Bringing industry, finance & people together.
1979
Inception

Corporate Registry

1985
Services

1990
Stock Broking
Services

1993
Financial Products
Distribution
Corporate Financial

1995
Services

Depository

1997
Services
IT Enabled
Services
2000

Personal Finance
Advisory Services
2001

Debt Market
Services
2003

Karvy Global
Services
Introduction: Karvy Corporate Profile

2004

JV with
Australian
Computershare
2005

PCG group of
Hongkong has taken
20 % stake in KSBL
2008

Largest
financial
product
distributor .
 Karvy Services
• Equity Trading Platform (Online/Offline).
• Commodities Trading Platform (Online/Offline).
• Portfolio Management Service.
• Mutual Fund Advisory and Distribution.
• Insurance Distribution.
• Corporate finance and Merchant Banking
services.
• Investment Advisory services.
• Registrar and Transfer agent services.
• Loans.
• Depository services.
• Currency Trading

Investor behavior towards
stock market
 Analysis of FMCG industry
 To analyze the industry for
investment purpose, we should
follow mainly two path:
1.Fundamental Analysis
b)Economy analysis
c)Industry analysis
d)Company analysis
2. Technical Analysis

 Economy Analysis
• Political Environment Analysis
• Economic Environment Analysis
ü Foreign exchange reserve
ü Foreign exchange risk
ü Inflation
ü Interest rates
ü GDP
ü CRR, etc.
• Technological Environment Analysis

Analysis of Economy of India
Year Inflation( GDP(%) Unemployme CRR(% PLR(%)
2006 %)
4.20 8.4 nt(%)
8.9 )5 11-11.50

2007 5.30 9.2 7.8 6 12-12.5

2008 6.40 8.5 7.2 9 13.25-14

2009 7.35 9.5 6.7 5 11-12

 FMCG Industry Analysis
• Fourth largest sector in economy
• Total market size more than US
dollar 13.1 billion
• Future in processed and packaged
food
• FDI investment
• Increasing population impacting
FMCG market
• Untapped Rs. 460 billion FMCG
market
 Why India ?
• Largest domestic market
• 70 % resides in rural area
• FMCG Market of India expected to
rise to US dollar 33.4 billion
• India – a large consumer goods
spender

Comparison of consumer
expenditure on food at
International level
 SWOT Analysis
Strengths Weakness
1. Low operational cost. 1. Low exports level.
2. Presence of established distribution network in
urban as well as rural areas.
3. Presence of well known brand

Opportunities
1. Untapped rural market.
2. Rising income level of consumers.
3. Large domestic market- 1 billion population.
4. Export potential.
5. High consumer good spending
Threats
1. Removal of import restrictions resulting in
replacing of domestic brands.
2. Slowdown in rural demand.
 Company Analysis
• Management
• Company policy
• Company perception in market
• Labor relation
• Profit and loss A/c
• Balance Sheet
• Ratios
 Hul analysis
• India largest consumer product co.
• 41,000 employee strength
• 52% stake of Anglo dutch co.
Unilever
• Cover 1 million retail outlet across
India
• 6.3 million outlets in India(80%)
• Product used by at least 80%
consumer homes
• Nutrition, hygiene and personal care
Hul Product