this ppt will explain you ratio analysis of dabur ltdt peer to peer comparison YOY coparision shown calculation of ratio

1. INVESTMENT BANKING
074 Rathod Aum
DABUR INDIA
LTD.

2. ABOUT DABUR INDIA LTD.
Dabur India is one of the leading fast moving consumer
goods (FMCG) players dealing in consumer care and food
products.
Dabur India Limited is the fourth largest FMCG Company in
India and the world’s largest Ayurvedic and Natural Health
Care Company with a portfolio of over 250 Herbal/Ayurvedic
products.

3. BUSINESS SEGMENTS
Home and personal care
49.9%
Health care
33.8%
food and Beverages
16.3%

4. RATIOS
(P/E )price to earnings ratio
this ratio measures company’s current share price relative to it’s per share
earning. In simple words P/E ratio gives an idea to the investor that how
much he/she is paying for every 1 rupee company earning in future
It shows the sentiment of the market with respect to that particular stock

5. CALCULATION OF P/E RATIO

6. INTERPRETATION OF P/E RATIO
current P/E ratio of dabur is not good it is high than its sector P/E and
its competitor godrej ltd is giving nice growth at Low P/E but by
looking at sentiment we can see that people investor are seeing
growth opportunity in dabur limited and are willing to pay more to
earn 1 rupee we can also see that dabur ltd has not generated
negative growth in past 10-11 years where as godrej is giving negative
growth 3 times in past 10-11 years

7. RATIO
Net profit margin
Asset turnover
Financial Leverage
It measures the ability of a firm to generate profits from its shareholders
investments in the company
in simple word returns generated on equity is called ROE
generally ROE comes from three sources
1.
2.
3.
(ROE) Return on equity

8. CALCULATION OF ROE

9. INTERPRETATION OF ROE RATIO
ROE of dabur is coming from net profit
margin which is good. company is not
generating return by taking debt

10. RATIO
Inventory turnover ratio
The inventory turnover ratio is the number of times
a company has sold and replenished its inventory
over a specific amount of time. The formula can
also be used to calculate the number of days it
will take to sell the inventory on hand.

11. CALCULATON OF INVENTORY TURNOVER RATIO

12. INTERPRETATION OF INVENTORY TURNOVER
RATIO
Dabur India Ltd. Current inventory ratio Is 2.34 hence company is able to sell 1557 of
inventories for almost two and half times a year it takes 179 days to sell 1557 inventory one
time. By comparing year over year inventory turnover ratio of dabur limited it is in between o
2-3 and its inventory days is in between 100-200.We can say company is maintaining
constantly its inventory turnover ratio and inventory turnover days
By looking to its competitor i.e. goderj consumer product the inventory turnover ratio is
constantly decreasing which shows company is not able to sell its product like previous years.
So if you don’t want to take risk you can invest in dabur and if you are sure that godrej will
come back with nice inventory turnover then you can invest in godrej

13. RATIO
Debtor turnover or receivable turnover ratio and debtor days
This ratio indicates the number of times average debtors have
been converted into cash during a year. This is also referred to as
the efficiency ratio that measures the company's ability to collect
revenue.
the average number of days it takes a company to receive
payment from its customers for invoices issued to them. is call
debtors day

14. CALCULATION OF DEBTORS TURNOVER RATIO

15. INTER PRETATION OF DEBTOR TURNOVER RATIO
Debtor turnover ratio of dabur is good because it
is collecting money from the debtors more time
then godrej and also by comparing both the
company year over year dabur is good at
collecting money from their debtors Emami is
even better then dabur in collecting money but
their sales is very low then both dabur and godrej

16. RATIO
creditor turnover ratio or payable turnover ratio and creditors day
The accounts payable turnover ratio is a short-term
liquidity measure used to quantify the rate at which
a company pays off its suppliers. Accounts payable
turnover shows how many times a company pays
off its accounts payable during a period.

17. CALCULATION OF CREDITORS TURNOVER RATIO

18. INTERPRETATION OF CREDITOR TURNOVER RATIO AND
CREDITORS DAYS
Creditor turnover of emami is good it is paying faster than godrej and dabur.
Dabur limited has high creditor days maybe creditors have faith that’s why they
are giving more time to dabur to pay their paybles.
We can see that dabur and godrej is almost in competition in paying creditors
and according to me cash flow of dabur is strong then emami and godrej hence
creditors have faith that dabur will pay their money

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