Fmcg stock valuation
•Download as PPTX, PDF•
1 like•545 views
The document is an extensive report on India's FMCG sector by Anisha Joshi. It analyzes the market size and growth drivers of the industry. It also examines key macroeconomic and government factors positively impacting the sector. The report evaluates several major FMCG companies, outlining their financial assumptions, ratios, and valuation using the P/E multiple method to determine target prices. Target prices indicating buy, hold, or sell recommendations are given for three analyzed companies based on their current and projected P/E ratios.
More Related Content
What's hot
What's hot (20)
Similar to Fmcg stock valuation
Similar to Fmcg stock valuation (20)
Fmcg stock valuation
- 1. Extensive Report on FMCG Sector Anisha Joshi | MBA 2015-17
- 2. Market Size and CAGR Macro & Micro Factors Trends in FMCG The FMCG Industry Companies analysed Valuation method and results
- 3. The FMCG Industry Companies analysed Valuation method and results Rising incomes driving purchases Growth of modern trade Govt. reforms to encorage FDI and improve market sentiments Greater awareness about products and brands New Product launches Desire to experiment with brands Evolving consumer lifestyles Growing rural market Strong distribution channel Increasing consumer demand Growth Drivers for FMCG Industry Govt. Initiatives Attractive opportunities Higher Investments Growing demand Advantages to the Indian FMCG Sector
- 4. The FMCG Industry Companies analysed Valuation method and results India being seen as a bright spot in the global FMCG sector
- 5. The FMCG Industry Companies analysed Valuation method and results ROE has reduced (reduction in leverage, but also the asset turnover ratio and profit margin have not grown much) ROE has reduced (poor Asset turnover Ratio, over the years) ROE has increased (due to better asset turnover ratio) Companies under purview Assumptions DuPont Analysis
- 6. The FMCG Industry Companies analysed Valuation method and results Revenue Sheet with BU Assumption sheet : common size statements P/L B/S CF P/E Multiple P = EPS * P/E(X) Valuation Methodology : P/E Multiples method Ratios and DuPont Analysis Ratios and DuPont Analysis
- 7. The FMCG Industry Companies analysed Valuation method and results Valuation Take and Target Price Buy with upside of 10.22% • Target Price =7343.33 • P/E(X) = 42 Low Capex Gross Margin , etc. Price V/S Value HOLD • Target Price = 287.72 • P/E(X)= 29.8 HOLD • Target Price= 913.86 • P/E(X) = 33.5 Source : Financial Model
- 8. Extensive Report on FMCG Sector Anisha Joshi | MBA 2015-17 FMCG Industry | Target Price determined for three firms using P/E(X) method
Editor's Notes
- Decrease in consumer demand, decrease in raw material costs, (MACRO) MICRO – DuPont analysis Trends – Modern trade expected to increase Patanjali has impacted but may not be much of a threat to established FMCG players : Credit Suisse Report FMCG stock no longer a defensive stock due to entry of new players, volatile market