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Economy Industry and Company Analysis Fmcg

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Submitted By Nikkisd
Words 588
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EIC ANALYSIS - ITC

Submitted By Nisha

ECONOMY


India GDP growth rate 2012 was 5%, 2013 is 5.8% and it is expected to grow at 6.5% in 2013

 
 

Inflation :WPI-7.6%

and CPI-10%

Gross fiscal deficit 5.1 Revenue Deficit-3.5 Third largest economy in terms of Purchasing Power Parity
Sector wise Contribution to GDP I) Agriculture 17% II) Industry 18% III) Services 65%

FMCG INDUSTRY


Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Category: Household Goods, Personal Care,

Drivers of Growth In FDI in India
Govt pro industry Policies Increase in Per Capita Rise of RuralIncome of Consumers rural and urban consumers



FDI Support

Food and Beverages and Healthcare.


Items in this category include all consumables that customers buy at regular interval





The FMCG’s promising market includes Cumulative FDI inflows middle class and the rural segments of the (USDmillion) as in 2012 1500 Indian population. Rapid growth with well-established 1000 500 distribution networks and intense 0 competition between the organized and unorganized segments



High money circulated in the Economy due to FMCG
Major Players: HUL, P&G, ITC ,Dabur , Colgate Palmolive etc



FMCG INDUSTRY (TRENDS)


FMCG sector in India is the fourth largest sector in the economy

FMCG Revenue in USD billion
40
30



India has become a key targeted country, with average growth in the FMCG industry of 35 11% per annum over the past decade
The market size of FMCG in India is expected 25 to grow from US$ 30 billion in 2011 to US$ 74 20 billion in 2018.

CAGR 17.3%



15


Industry witnessed healthy FDI inflows as the sector accounted for 1.9 per cent of the country’s total FDI inflows over April 2000 September 2012 According to AC Nelson Survey , Indian FMCG sector is expected to grow between 12% to 17% by 2020

10 5

0



ITC LTD


Incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Ltd which later changed to ITC LTD First six decades of existence devoted to Cigarettes and Leaf Tobacco Businesses Gradually the company established a strong foot hold in other FMCG goods like: Food , lifestyle, retailing, Agarbattis, Education and stationery, Personal care , safety matches etc Popular brands under ITC are : John players,Wills Cloth, Classmate, PaperCraft, Mangaldeep, Aashirwad, Bingo, Mint-O , CandyMan, Kitchens of India,Vivel, Fiama Di Wills, Superia etc. It runs e chaupal , which enalles farmers to get Fair price of their products through digital rural Infrastructure ITC is giving tough competition to HUL,FMCG leader In India











ITC FINANCIAL ANALYSIS
Ratios
Equity Earning Per Share EBITDA/ Net Revenue

2010
382 5.31

2011
774 6.45

2012
782 7.88

2013
790 9.39

•Equity , Earning Per share, EBITDA/Net Revenue, Net Profit Margin , Return on Equity are rising over the years

36.85
24.78

37.76
28.13 0.01:1 22.46

39.01
28.79 0.004:1 23.81

39.07
32.92 0.003:1 24.33

•CAGR in Total Shareholder Returns in the period 1996-2013 : 27%
•Debt/Equity Ratio is declining •Beta value is .33 so the stocks are stable These show that the conditions are favorable for Investors who want invest in low risk stocks

P/E

Debt/Equi 0.01:1 ty Ratio Net Profit Margin Ratio 21.72

Return on 29.22 Equity

33.23

35.47

36.12

SOURCES http://www.itcportal.com/  http://www.moneycontrol.com/  http://www.ibef.org/  http://www.adb.org/

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