Fundamental analysis is a method of evaluating a security's intrinsic value by analyzing its financial and economic factors. It involves analyzing macroeconomic factors like GDP, inflation, monetary policy, import/export trends, and unemployment rates. It also involves analyzing the industry life cycle, trends, and drivers. Company analysis examines qualitative factors like management and business model as well as quantitative ratios like current ratio, debt-to-equity ratio, return on equity, inventory turnover, PE ratio, free cash flow, EPS, and dividend pay-out ratio to identify undervalued stocks and assess long-term investment strategies.

1. FUNDAMENTAL
ANALYSIS

2. Meaning:
• Fundamental analysis is a method of evaluating the intrinsic value of a security or
asset by analyzing a company's financial and economic fundamentals
• Helps in:
Identifying undervalued assets
Assessing the potential risks
long term investment strategies

3. Economic analysis:
• GDP
• Inflation
• Monetary Policy
• Import- Export
• Foreign Direct Investment
• Unemployment rate

4. Industry analysis
• Industry life cycle
• Industry trends (trends of FMCG Industry include: Sustainability, e-Commerce,
Artificial Intelligence, Digitalization)
• Industry drivers(population, income growth, health and wellness, technological
advancement, distribution channel etc)

5. Year GDP Growth rate
2013 6.39%
2014 7.41%
2015 8.00%
2016 8.26%
2017 6.80%
2018 6.45%
2019 3.74%
2020 -6.60%
2021 8.95%
2022 7.00%
GDP Growth rate
Graph 1:
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
GDP Growth rate

6. Year Inflation Rate (%)
2012 9.48%
2013 10.02%
2014 6.67%
2015 4.91%
2016 4.95%
2017 3.33%
2018 3.94%
2019 3.73%
2020 6.62%
2021 5.13%
2022 6.50%
Inflation
Graph 2:
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Inflation Rate (%)

7. Year Repo (In %) Reverse Repo (In %)
2012 8 7
2013 7.75 6.75
2014 8 7
2015 6.75 5.75
2016 6.25 5.75
2017 6 5.75
2018 6.5 6.25
2019 5.15 4.9
2020 4 3.35
2021 4 3.35
2022 6.25 3.35
Monetary Policy
Graph: 3
0
1
2
3
4
5
6
7
8
9
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Monetary Policy
Repo (In % ) Reverse Repo (In %)

8. Year
Import of India (In USD
Billion)
Export of India (In USD
Billion)
2013 38.27 23.2
2014 34.21 28.2
2015 35.21 26.2
2016 32.1 21.98
2017 28.5 23.32
2018 37.05 28.84
2019 33.1 33.12
2020 37.69 26.02
2021 30.52 27.56
2022 56.39 33.79
Import-Export
Graph 4:
0
10
20
30
40
50
60
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
IMPORT -EXPORT
Import of India (In USD Billion) Export of India (In USD Billion)

9. Year
Foreign direct Investment
(In USD Billion)
2011 36.5
2012 24
2013 28.15
2014 34.58
2015 44.01
2016 44.46
2017 39.97
2018 42.12
2019 50.61
2020 64.36
2021 83.6
2022(Forecas
ted) 100
Foreign Direct Investment
Graph 5:
0
20
40
60
80
100
120
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Foreign direct Investment ( In USD Billion)

10. Year Exchange Rate
2013 54.45
2014 60.5
2015 61.15
2016 65.46
2017 67.09
2018 64.45
2019 69.89
2020 70.49
2021 73.2
2022 74.42
Exchange Rate
Graph 6:
0
10
20
30
40
50
60
70
80
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Exchange Rate

11. Year
Unemployment Rate
(%)
2012 5.41%
2013 5.42%
2014 5.44%
2015 5.44%
2016 5.42%
2017 5.36%
2018 5.33%
2019 5.27%
2020 8.00%
2021 5.98%
2022 8.30%
Unemployment Rate
Graph 7:
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Unemployment Rate (%)

12. Company analysis
• Qualitative(Business model, management, corporate culture etc)
• Quantitative

13. Year HUL Nestle Britannia Dabur Godrej
2012-13 0.99 1.32 0.82 1.5 1.14
2013-14 1.03 1.71 0.9 1.73 0.72
2014-15 1.05 1.45 1.19 1.25 0.89
2015-16 1.03 1.68 1.06 1.32 1.01
2016-17 1.31 2.01 1.84 1.48 1.04
2017-18 1.29 2.64 2.03 1.59 1.26
2018-19 1.36 2.55 1.94 1.4 1.12
2019-20 1.31 1.78 1.45 2.26 1.2
2020-21 1.26 1.68 1.21 1.39 1.55
2021-22 1.34 1.05 0.93 1.14 2.62
Current Ratio
Graph 8:

14. Year HUL Nestle Britannia Dabur Godrej
2012-13 0.18 0.58 0.66 1.39 0.09
2013-14 0.09 0.5 0.2 0.02 0
2014-15 0.05 0.01 0.16 0.06 0
2015-16 0.06 0.01 0.13 0.03 0
2016-17 0.01 0.01 0.06 0.08 0.03
2017-18 0.02 0.01 0.04 0.07 0
2018-19 0.02 0.01 0.03 0.03 0
2019-20 0 0.03 0.32 0.02 0.06
2020-21 0 0.02 0.59 0.03 0
2021-22 0 0.02 0.91 0.09 0
Debt-Equity Ratio

15. Year HUL Nestle Britannia Dabur Godrej
2012-13 141.98% 59.38% 36.75% 33.91% 18.50%
2013-14 118.02% 47.16% 43.33% 35.33% 18.68%
2014-15 115.85% 41.76% 50.37% 32.64% 19.34%
2015-16 110.71% 19.99% 44.90% 32.72% 19.35%
2016-17 69.18% 30.51% 32.68% 27.29% 19.28%
2017-18 74.02% 35.82% 29.30% 25.36% 21.54%
2018-19 78.81% 43.74% 27.78% 31.86% 35.63%
2019-20 83.90% 102.58% 34.72% 25.59% 23.01%
2020-21 16.77% 103.12% 53.02% 25.63% 19.25%
2021-22 18.08% 102.90% 66.73% 24.44% 18.84%
Return on Equity
Graph 10:

16. Year HUL Nestle Britannia Dabur Godrej
2012-13 10.8 11.14 16.79 8.7 6.68
2013-14 10.76 12.31 16.99 8.7 8.27
2014-15 12.57 11.62 20.54 9.84 9.05
2015-16 13.61 9.62 20.49 9.32 8.66
2016-17 14.6 9.98 14.24 8.96 9.06
2017-18 14.93 11.23 15.61 7.96 9.29
2018-19 15.78 11.62 14.45 8.56 9.23
2019-20 14.71 9.58 17.08 7.8 8.32
2020-21 13.6 9.38 12.22 6.45 8.9
2021-22 13.16 9.26 10.52 6.61 8.79
Inventory Turnover Ratio
Graph 11:

17. Year HUL Nestle Britannia Dabur Godrej
2012-13 26.6 47.67 13.41 40.39 17.28
2013-14 33.86 55.11 13.67 46.61 17.26
2014-15 43.8 47.43 20.8 61.17 18.05
2015-16 46.09 103.19 21.51 46.79 21.19
2016-17 43.95 75.79 23.99 48.94 22.38
2017-18 55.11 87.23 31.48 53.96 49.69
2018-19 61.21 88.72 66.07 57.11 39.96
2019-20 73.85 90.08 43.56 67.95 45.13
2020-21 71.82 91.24 49.61 69.13 60.94
2021-22 54.58 88.14 48.17 66.15 51.66
PE Ratio
Graph 12:

18. Year HUL Nestle Britannia Dabur Godrej
2012-13 3124.73 719.01 252 622.53 419.42
2013-14 3213 1468.17 416.2 620.09 698.67
2014-15 2609.01 1464.74 336.21 743.07 678.27
2015-16 3229.67 948.76 444.43 862.92 419.29
2016-17 3934 1352.58 442.61 519.31 1074.44
2017-18 5085 1621.94 672.53 714.64 1122.4
2018-19 5070 1889.67 484.32 1002.37 1001.6
2019-20 6603 2081.47 71.66 901.75 834.91
2020-21 8425 1980.36 1821.23 1456.38 1308.9
2021-22 8194 1540.55 1612.65 1025.4 804.57
Free Cash Flow
Graph 13:

19. Year HUL Nestle Britannia Dabur Godrej
2012-13 17.56 110.76 19.57 3.39 15.01
2013-14 17.88 115.86 30.84 3.85 16.59
2014-15 19.95 122.87 51.91 4.34 19.22
2015-16 18.87 58.42 63.66 5.34 21.72
2016-17 20.75 103.86 70.31 5.67 24.9
2017-18 24.19 127.07 78.99 6.09 14.67
2018-19 27.88 166.66 46.7 7.16 17.17
2019-20 31.13 204.15 61.64 6.62 11.54
2020-21 33.85 215.97 73.09 7.82 11.97
2021-22 37.53 222.45 66.69 8.11 14.46
EPS
Graph 14:

20. Year HUL Nestle Britannia Dabur Godrej
2012-13 105.37% 43.79% 43.43% 44.24% 33.31%
2013-14 72.70% 41.86% 38.91% 45.40% 31.64%
2014-15 75.20% 51.27% 30.83% 46.07% 28.62%
2015-16 84.81% 83.02% 32.03% 42.13% 26.48%
2016-17 81.94% 60.66% 31.29% 39.70% 60.25%
2017-18 82.66% 67.68% 31.67% 123.23% 61.33%
2018-19 78.90% 69.00% 32.12% 38.42% 87.37%
2019-20 110.84% 167.53% 56.70% 45.30% 69.31%
2020-21 91.57% 92.60% 215.55% 60.75% 0.00%
2021-22 90.59% 89.91% 84.89% 64.16% 0.00%
Dividend Pay-out Ratio
Graph 15:

21. 1 2
Current Ratio Nestle Dabur
Debt to Equity ratio Nestle HUL
ROE Nestle Britannia
Inventory Turnover
ratio HUL Britannia
PE ratio Britannia HUL
Free Cashflow HUL Britannia
EPS Nestle Britannia
Dividend Pay-out
Ratio HUL Nestle
CAGR Britannia Nestle