Which is The No 1 FMCG Company In India ?

Our Everyday life is solely dependent on FMCG (Fast Moving Consumer Goods) products from morning to night.This Sector is the India's fourth largest sector & engaged 3.2 million people directly or indirectly.The demand of FMCG products are growing rapidly.Due to low cost & very fast consumption, FMCG products are produced in large volume. This sectors basically covers Processed foods, Drinks,Beverages,Personal care products,Medicines,Cleaning Products,Toiletries,Office Supplies
Today we have done detailed fundamental comparison of  top 6  FMCG Companies in India. This companion is based on Quality & Valuation.

Comparison Of 6 good FMCG Companies by  Fundamental Analysis.

Companies selected for analysis

      1) GODREJCP                        2) MARICO                                    3) HINDUNILVR

      4) DABUR                               5) ITC                                             6) TATA CONSUMER

Process Of Analysis & Understanding of Rank & Score considering Quality & Valuation

A) Comparison considering Quality

Here , 1 means that the company has scored lowest points and 5 means the company has scored highest points.

Here we have analysed considering ten matrices as below :

         1) Current Ratio                                 2) Return on Capital Employed(ROCE)   

         3) Return on Equity (ROE)               4) Retun on Asset (ROA)            

         5) Debt to Equity Ratio(D/E)            6) Inventory Turnover Ratio

        7) Interest Coverage Ratio                8) Operating Profit Margin             

        9) 5 year sales & Profit Growth        10) 5 year sales & Profit Growth    

Comparing  the quality aspects HINDUNILVR is Ranked One &  GODREJ CONSUMER Is Ranked Sixth.

A) Comparison considering Valuation

Here we have valued Stock Price((Highest(6) to Lowest(1)) considering ten matrices as below :

        1) Price/ Earning  to Earnings Growth Ratio(PEG Ratio)    2) Price to sales Ratio (P/S ratio)   

        3) Price to Book Value (P/B Ratio)                                       4) Price/ Earning (PE Ratio)            

        5) Dividend Yield (D/Y ratio)                                                 6) EV/EBITDA Ratio(Lower Better)

        7)EV/Sales Ratio                                                                   8) PEXPB (Lower Better)             

        9) Price to free Cash Flow (Price /FCF)                             10) Price To Graham No(lower Better)    

Comparing  the Valuation  aspects ITC is Ranked One (Cheapest Price) & DABUR is Ranked Sixth (High price).

Please note that this is not any buy and sell recommendation , only a comparative study for education purpose only.