Project report

FSA-BV
On
Business Valuation

Submitted to : Submitted by:

Prof. Sudha Balajee Arnav Taparia – 74052100104

Faculty at NMIMS Bengaluru, Swastik Vashisht – 74052100533
Vani Srivastava – 74052100529
Daksh Agarwal – 74052100180
Rajath K.S. – 74052100227
Ansh Das – 74052100256
Ishaan Sood - 74052100353

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 Contribution of each group member in the project.

Arnav Taparia Porter’s 5 Forces Model, Business Valuation,

Document Compilation, Power Point
Presentation

Swastik Vashisht VRIO Analysis, Business Valuation,

Document Compilation.

Vani Srivastava SWOT Analysis, Director’s Report Analysis,

Business Valuation.

Daksh Agarwal Ratio Analysis, Cash Flow Analysis of 3

Companies. Power Point Presentation,
Document Compilation

Rajath K.S. Ratio Analysis, Cash Flow Analysis of 3

Companies.

Ishaan Sood Ratio analysis and Cash Flow analysis of 2

companies. (delayed by 10 days)

Ansh Das Economic Indicators.

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 TABLE OF CONTENTS
S. No Content Page No.
1 Economic Analysis 4
2 Industry Analysis 5
3 RaJos, Cash Flow and Directors 15
Report Analysis
4 Business ValuaJon 24

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Economic Indicator of Underdeveloped, Developed and Growing Countries:
India's indicators Last Previous
GDP Growth Rate 7.80% 6.10%
Unemployment Rate 8% 8.50%
Inflation Rate 6.83% 7.44%
Current Account -9195 -1336
Balance of Trade -24.2 -20.67

China's indicators Last Previous

GDP Growth Rate 6.30% 4.50%
Unemployment Rate 5.20% 5.30%
Inflation Rate 0.10% -0.30%
Current Account 647 815
Balance of Trade 68.2 80.38

Bangladesh's
indicators Last Previous
GDP Growth Rate 7.25% 5.47%
Unemployment Rate 4.70% 5.10%
Inflation Rate 9.92% 9.69%
Current Account 75.06 157
Balance of Trade -246 -138

Afghanistan's
indicators Last Previous
GDP Growth Rate -20.70% -2.10%
Unemployment Rate 13.30% 11.70%
Inflation Rate -6.50% -2.80%
Current Account -1047 -847
Balance of Trade -4051 -5805

Japan's indicators Last Previous

GDP Growth Rate 1.20% 0.80%
Unemployment Rate 2.70% 2.70%
Inflation Rate 3.20% 3.30%
Current Account 2772 1509
Balance of Trade -938 -63.73

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 Singapore's
indicators Last Previous
GDP Growth Rate 0.50% 0.40%
Unemployment Rate 1.90% 1.80%
Inflation Rate 4% 4.10%
Current Account 31024 30560
Balance of Trade 3585 6509

• We have taken India as the country as it is having the highest GDP growth rate so there
is a potential of growth of a company

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Analysis of Industries through PORTER’s 5 Forces:-

A. Automobile Industry
1. Threat of New Entrants:
• High Capital Requirements: Entering the automobile industry requires substantial
capital for manufacturing facilities, research and development, and distribution
networks. This acts as a barrier to new entrants.
• Economies of Scale: Established companies benefit from economies of scale, making
it difficult for new entrants to compete on cost.
• Brand Loyalty: Consumers often have strong brand preferences, which makes it
challenging for new players to gain market share.
2. Bargaining Power of Suppliers:
• Supplier Concentration: The automobile industry relies on a vast network of
suppliers, but some suppliers, such as those providing specialized components, may
have significant power due to their scarcity or expertise.
• Switching Costs: Switching suppliers in the automobile industry can be expensive and
time-consuming, giving suppliers some bargaining power.
• Forward Integration: Suppliers who threaten to integrate forward into manufacturing
can also exert pressure.
3. Bargaining Power of Buyers:
• Variety of Choices: Buyers have a wide range of choices when it comes to automobile
brands and models, which reduces their individual bargaining power.
• Information Availability: The internet has made information about prices, features,
and reviews readily accessible to consumers, strengthening their bargaining power.
• Price Sensitivity: Consumers are often price-sensitive, especially in economic
downturns, increasing their ability to negotiate on price.

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 4. Threat of Substitutes:
• Public Transportation: Public transportation, car-sharing services, and other
alternatives can pose a threat, especially in urban areas where owning a car may not be
necessary.

• Environmental Concerns: Growing environmental awareness and regulations can

increase the demand for alternative transportation modes, such as electric scooters or
bicycles.
5. Rivalry Among Existing Competitors:
• High Competition: The automobile industry is highly competitive with numerous
well-established companies vying for market share.
• Product Differentiation: Companies often differentiate their products through
technology, design, and branding, intensifying competition.
• Price Wars: Price wars can occur, particularly during economic downturns, which can
erode profitability.

B. Healthcare Industry
1. Threat of New Entrants:
• High Barriers to Entry: The healthcare industry has high barriers to entry due to the
substantial capital required for facilities, equipment, and regulatory compliance.
• Regulatory Hurdles: Stringent government regulations and licensing requirements
make it difficult for new entrants to gain a foothold.
• Economies of Scale: Established healthcare providers benefit from economies of scale,
making it challenging for newcomers to compete effectively.
2. Bargaining Power of Suppliers:
• Pharmaceutical Companies: Suppliers in the healthcare industry, such as
pharmaceutical companies, may have significant bargaining power due to their unique
products and the high cost of switching suppliers.
• Medical Equipment Manufacturers: Similarly, manufacturers of medical equipment
and devices may have substantial influence, especially if their products are essential.
3. Bargaining Power of Buyers:
• Insurance Companies: In the healthcare industry, insurance companies often have
strong bargaining power because they negotiate pricing with healthcare providers.
• Patients: Patients, to some extent, have limited bargaining power, especially when it
comes to emergency care. However, in elective procedures or non-urgent care, they
may have more choice and influence.

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 4. Threat of Substitute Products or Services:
• Telemedicine: The rise of telemedicine and digital health solutions represents a
potential threat as they offer convenient alternatives to traditional in-person healthcare
services.
• Alternative Therapies: Alternative medicine and therapies can also pose a threat to
conventional healthcare services.
5. Intensity of Competitive Rivalry:
• Healthcare Providers: Competitive rivalry is high among healthcare providers,
including hospitals, clinics, and medical practices. They compete for patients, talent,
and contracts with insurance companies.
• Pharmaceutical Industry: Intense competition exists among pharmaceutical
companies, driving innovation and pricing pressures.

C. FMCG Industry
1. Threat of New Entrants:
• Low to Moderate: The FMCG industry typically requires a significant amount of
capital for brand development, manufacturing, and distribution. Established brands
have strong customer loyalty and economies of scale, making it difficult for new
entrants to gain market share quickly.
• Branding and advertising play a significant role in this industry, which can be a barrier
to entry.
2. Bargaining Power of Suppliers:
• Low to Moderate: Suppliers in the FMCG industry usually have limited bargaining
power because of the large number of suppliers available. However, if a specific raw
material or component is scarce or controlled by a few suppliers, their power can
increase.
• Switching suppliers is generally easier in this industry due to the availability of
alternative sources.
3. Bargaining Power of Buyers:
• High: Customers in the FMCG industry have high bargaining power due to the
abundance of product choices. They can easily switch between brands based on price,
quality, or other factors.
• Retailers also have significant bargaining power because they can negotiate for better
terms and demand lower prices from FMCG companies.
4. Threat of Substitute Products:
• High: There are often many substitute products available in the FMCG industry.
Consumers can easily switch to alternative brands or products with similar functions.
This makes it crucial for FMCG companies to differentiate their products and build
strong brand loyalty.

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 5. Rivalry Among Existing Competitors:
• High: Intense competition is a hallmark of the FMCG industry. Numerous brands
compete for market share, and competition is based on factors like price, product
quality, marketing, and distribution.
• FMCG companies often engage in aggressive marketing strategies, promotional
activities, and product innovations to stay ahead of their rivals.

D. IT Industry
1. Threat of New Entrants:
• In the IT industry, the threat of new entrants can be relatively high due to the low
barriers to entry. New companies can start with minimal capital investment, especially
in software development.
• However, established IT firms often have economies of scale, strong brand recognition,
and existing customer relationships, which can act as barriers to entry.
2. Bargaining Power of Suppliers:
• Suppliers in the IT industry can include hardware manufacturers, software providers,
and service providers.
• In some cases, suppliers may have substantial bargaining power, especially if they
provide unique or critical components.
• However, the IT industry also has a wide range of suppliers, which can reduce the
overall supplier power.
3. Bargaining Power of Buyers:
• Buyers in the IT industry can be individual consumers, businesses, or government
entities.
• In this industry, buyers often have significant bargaining power because they have
access to a wealth of information and choices.
• IT companies must focus on customer satisfaction and offer competitive pricing to
retain customers.
4. Threat of Substitute Products or Services:
• The IT industry is constantly evolving, and new technologies can often serve as
substitutes for existing products or services.
• Companies in the IT industry need to continually innovate to stay competitive and
prevent customers from switching to alternative solutions.
5. Rivalry Among Existing Competitors:
• The IT industry is highly competitive, with many players vying for market share.
• Competition is intense in areas like software development, cloud services, and
hardware manufacturing.

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E. Banking Industry
1. Threat of New Entrants:
• High Barriers to Entry: The banking industry typically has high barriers to entry due
to stringent regulatory requirements and the need for substantial capital. New entrants
face challenges in establishing trust and a customer base.
• Economies of Scale: Established banks benefit from economies of scale, making it
difficult for new entrants to compete on cost.
• Brand Loyalty: Customers often have strong ties to existing banks, making it
challenging for new entrants to gain market share.
2. Bargaining Power of Suppliers:
• In the banking industry, suppliers mainly refer to sources of capital, including
depositors, institutional investors, and central banks. Banks typically have a good
degree of control over their sources of funding.
• Regulatory Influences: Regulatory authorities can also be considered as suppliers to
some extent. Banks must adhere to regulations set by central banks and regulatory
bodies.
3. Bargaining Power of Buyers (Customers):
• Customers have various options when it comes to banking services, but switching costs
can be high, especially for retail customers. This reduces their bargaining power to
some extent.
• In the case of corporate and institutional clients, they often have more bargaining
power, particularly if they have a large volume of business.

4. Threat of Substitute Products or Services:

• In the banking industry, substitutes can include fintech companies offering online
payment solutions, peer-to-peer lending platforms, and cryptocurrencies. These
alternatives can pose a threat, especially to traditional banking services.
• However, traditional banks are adapting by incorporating digital services to compete
effectively with these substitutes.
5. Rivalry Among Existing Competitors:
• The rivalry among existing banks is intense, with many players vying for market share.
This competition can lead to price wars and a focus on differentiation through services
and technology.
• Differentiation: Banks often differentiate themselves through services, customer
experience, and innovation, such as mobile banking apps and investment advisory
services.
• Regulatory Environment: Regulatory changes and compliance requirements can also
influence the competitive landscape, as they affect the cost structure and operations of
banks.

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 Analysis of Industries through VRIO’s 4 Criteria framework
VRIO framework is the tool used to analyse firm’s internal resources and capabiliJes to find out if
they can be a source of sustained compeJJve advantage and to make efficient business decisions.

A. Automobile Industry:-
V- value: Consumers are very interested in the valued items that the automoJve sector offers.
Vehicles like cars are necessary for transportaJon because they give people and businesses
convenience and mobility. AddiJonally, the sector greatly boosts the economy by generaJng tax
money and new jobs.

R- rarity: Even though there are numerous automoJve producers and brands, the unique products
and technologies offered by each business can each be regarded as unique. This is parJcularly true
for businesses that have created cu]ng-edge safety measures, new features, or electric car
technologies.

I- Imitability: It is relaJvely difficult to imitate the automobile industry's products due to the high
costs and technical experJse required. A new vehicle model or developing of cu]ng-edge
technology necessitates significant investments in supply chain management, producJon faciliJes,
and research and development. Thus, it is difficult for new entrants to copy the strategies of industry
leaders.

O- OrganizaJon: The effecJve management of numerous tasks inside a corporaJon is essenJal to the
car industry's smooth operaJon. It's crucial to handle the supply chain, sales, markeJng, and a`er-
sales services effecJvely. Delivering high-quality automobiles and saJsfying customer requests is
more compeJJve for businesses with established organizaJonal structures and procedures.

The VRIO analysis concludes that the automoJve sector possesses a unique combinaJon of valuable,
rare, challenging-to-replicate, and well-organized resources and capabiliJes. It appears to be in a
strong compeJJve posiJon in the market based on this. To maintain their compeJJve advantage,
businesses in the sector must constantly innovate and adjust to shi`ing consumer demands and
technology improvements.

B. Healthcare Industry:-

The VRIO (Valuable, Rare, Inimitable, and Organized) analysis is a framework used to assess the
internal resources and capabiliJes of a firm or industry. Here is a VRIO analysis on the healthcare
industry:

1. Valuable:
- PaJents can benefit from healthcare services in terms of disease diagnosis, treatment, and
prevenJon, which enhances quality of life and health outcomes.
- Advanced medical technology are useful tools that enable more precise diagnoses and more
successful treatments.

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2. Rare:
- It is rare and difficult to replicate access to highly competent medical professionals, such as
surgeons, specialized doctors, and nurses.

- Due to their high cost, long research and development, and rarity, cu]ng-edge medical technology
and equipment can be hard to come by.

3. Inimitable:
- It takes years of school, training, and experience for medical professionals to develop their skill and
knowledge, making it challenging for rivals to copy them.
- The healthcare sector is governed by strict rules and standards, making it difficult for newcomers to
reproduce the infrastructure and compliance requirements.

4. Organized:
- Healthcare organizaJons and hospitals have established networks, partnerships, and relaJonships
with other healthcare providers, insurance companies, and government agencies, creaJng an
organized ecosystem.
- Efficient management and coordinaJon of paJent care through electronic health records,
telemedicine pladorms, and scheduling systems contribute to an organized healthcare industry.

Overall, the healthcare industry demonstrates a strong VRIO profile. It possesses valuable and rare
resources such as medical professionals and advanced technologies. AddiJonally, these resources are
difficult to imitate due to extensive educaJon, training, and regulatory barriers. The industry also
demonstrates organized structures with established networks and coordinaJon systems. However, it
is important to note that addiJonal analysis should be conducted to evaluate specific companies or
segments within the healthcare industry.

C. FMCG Industry:-

VRIO analysis is a framework used to analyse a firm's internal resources and capabiliJes. It stands for
Value, Rarity, Imitability, and OrganizaJon.

1. Value: The FMCG (Fast-Moving Consumer Goods) industry has a high value for consumers due to
the constant demand for essenJal everyday products such as food, beverages, personal care items,
and household goods. These products are necessary for daily life, making the FMCG industry
essenJal in meeJng consumer needs.

2. Rarity: In terms of rarity, the FMCG industry has both rare and common resources. The industry's
ability to produce and distribute these goods at a large scale is not rare, as many companies operate
within the industry. However, certain resources, such as unique recipes or patented technologies, can
provide a compeJJve advantage and are relaJvely rare.

3. Imitability: The FMCG industry faces challenges when it comes to imitability. While some aspects
of the business, such as manufacturing and distribuJon processes, can be imitated, certain
compeJJve advantages, such as brand reputaJon, established distribuJon networks, and economies
of scale, can be difficult to duplicate. AddiJonally, companies that invest heavily in research and
development might have patented products that are protected from imitability.

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4. OrganizaJon: The organizaJonal aspects of the FMCG industry can play a significant role in its
success. EffecJve supply chain management, distribuJon networks, and markeJng strategies are

essenJal for companies to succeed in this highly compeJJve industry. The ability to efficiently
manage resources and assets is crucial for long-term success.

Overall, the FMCG industry has a high value and some rare resources, but faces challenges in terms
of imitability. EffecJve organizaJon and management are key factors for companies within the
industry to maintain a compeJJve advantage.

D. IT Industry:-

VRIO analysis is a framework used to evaluate a company's internal resources and capabiliJes. It
assesses whether these resources and capabiliJes provide the company with a compeJJve
advantage in the market. The VRIO framework looks at four key factors: value, rarity, imitability, and
organizaJon.

Value: The first factor to consider is whether the resources and capabiliJes in the IT industry provide
value to the company. This could include innovaJve technologies, unique so`ware soluJons, or
specialized experJse that can help the company gain a compeJJve edge.

Rarity: The second factor to evaluate is whether the resources and capabiliJes are rare within the IT
industry. If a company possesses resources or capabiliJes that are not easily found in the market, it
may have a compeJJve advantage over its rivals.

Imitability: The third factor is to assess how easily the resources and capabiliJes can be imitated by
compeJtors. In the IT industry, where technology advances rapidly, it is important to have resources
and capabiliJes that are difficult to replicate. Intellectual property rights, patents, and trade secrets
can play a significant role in protecJng these resources.

OrganizaJon: The final factor to consider is how the company organizes and uJlizes its resources and
capabiliJes. This includes the company's management pracJces, organizaJonal structure, and
culture. EffecJve organizaJon and uJlizaJon of resources can enhance a company's compeJJve
advantage.

Applying the VRIO analysis to the IT industry, some potenJal examples of resources and capabiliJes
that could provide a compeJJve advantage include:
- Patented technologies or proprietary so`ware soluJons that are difficult for compeJtors to
replicate.
- Highly skilled and specialized IT professionals who possess unique knowledge and experJse in
emerging technologies.
- Strong relaJonships with strategic partners or suppliers that provide access to exclusive resources
or market opportuniJes.
- A robust IT infrastructure or data analyJcs capabiliJes that enable the company to deliver superior
services or products to customers.
- A culture of innovaJon and conJnuous learning that encourages employees to explore new ideas
and stay ahead of market trends.

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E. Banking Industry:-

VRIO analysis is a framework used to evaluate the compeJJve advantage of an industry or

organizaJon. It stands for Value, Rarity, Imitability, and OrganizaJon. Here is a VRIO analysis on the
banking industry:

1. Value:
- The banking industry provides various financial services such as loans, deposits, and investment
management, which are valuable to individuals and businesses.
- Banks help in the management of money, facilitate transacJons, and offer financial advice and
services. These services are highly valuable to customers, as they provide convenience and security.

2. Rarity:
- The banking industry has several rare resources and capabiliJes. For example, banks have
proprietary technology systems for managing transacJons securely and efficiently.
- Banks also have access to extensive customer data, which can be used for personalized markeJng
and targeted product offerings.

3. Imitability:
- While some aspects of banking services can be easily replicated by new entrants, certain resources
and capabiliJes are difficult to imitate.
- Established banks have built trust and long-term relaJonships with their customers, making it
challenging for new players to quickly gain market share.
- Banks also require substanJal capital and regulatory compliance, further increasing the barriers to
entry and imitaJon.

4. OrganizaJon:
- Banks have well-established organizaJonal structures and processes to ensure the smooth
provision of services.
- They have dedicated teams for risk management, compliance, customer service, and product
development.
- Banks also invest in training their employees and fostering a customer-centric culture.

Overall, the banking industry has value, rarity, and parJally imitable resources and capabiliJes, which
provides a compeJJve advantage. However, banks face challenges from disrupJve fintech companies
that leverage advanced technology and nimble business models. Banks need to conJnuously invest in
innovaJon and agility to remain compeJJve in the rapidly evolving banking sector.

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 Analysis of Industry using SWOT ANALYSIS
A) Automobile industry:
• Strengths: it is a highly growing industry, continuously contributing to growth and
development / strong brand identities and reputations of established companies
contribute to consumer trust and loyalty / The industry has a vast global market reach
and established distribution networks, allowing for global sales and expansion/ Access
to a skilled and experienced workforce, especially in manufacturing, engineering, and
design, supports high-quality production.
• Weaknesses: The industry is highly sensitive to economic fluctuations and consumer
purchasing power, affecting demand and sales / Labor unions can impact production
costs and labour-related decisions, affecting operational efficiency and costs/ Stricter
environmental regulations and consumer demand for sustainable options pose
challenges for traditional gasoline-powered vehicles / Overreliance on specific
suppliers or regions for critical components makes the industry vulnerable to
disruptions in the supply chain.
• Opportunities: Increasing focus on electric and hybrid vehicles presents a significant
growth opportunity due to the growing demand for sustainable transportation options /
Development and adoption of AVs can revolutionize the industry, offering new revenue
streams and enhancing safety and convenience / Collaborations with tech companies
and other industries can lead to innovative solutions and improved competitiveness in
the market / Implementing advanced manufacturing technologies like automation, AI,
and IoT can optimize operations, reduce costs, and improve productivity.
• Threats: Fierce competition among industry players, including new entrants and tech
companies entering the sector, can lead to price wars and erode profit margins /
Vulnerability to disruptions due to geopolitical tensions, natural disasters, or other
unforeseen events affecting the supply of crucial components / Shifts in consumer
preferences towards ride-sharing, electric vehicles, or other forms of mobility can
disrupt traditional sales models and demand for certain vehicle types / Trade disputes,
tariffs, and geopolitical tensions can affect international trade, supply chain logistics,
and cost structures.

B) Healthcare industry:
• Strengths: Highly trained healthcare professionals, including doctors, nurses, and
specialists, contribute to the industry's competence and ability to deliver quality care/
Ongoing medical research, clinical trials, and innovative therapies enhance treatment
efficacy and contribute to advancements in medical science / Availability of diverse
healthcare services, from primary care to specialized treatments, allows for
comprehensive patient care and support.
• Weaknesses: Rising healthcare costs and limited accessibility to affordable healthcare
services present a significant challenge, impacting the overall population's well-being/
Extensive administrative processes, billing complexities, and regulatory compliance
add administrative burden and may divert resources from patient care/ Disparities in
healthcare access and outcomes based on socio-economic factors, geography, and
demographic characteristics are a persistent issue.

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 • Opportunity: leveraging big data analytics and healthcare IT can enhance clinical
outcomes, streamline operations, and improve decision-making in healthcare
organizations/ Focus on preventive healthcare measures, education, and lifestyle
modifications can lead to reduced healthcare costs and improved overall population
health/ The rapid adoption of telehealth and virtual care offers increased accessibility,
cost-effectiveness, and convenience for patients, especially in remote or underserved
areas/ Collaborations between countries and organizations can address global health
challenges, ensuring access to healthcare resources and knowledge sharing
• Threats: Unexpected public health crises, such as pandemics or outbreaks, can strain
healthcare systems, resources, and workforce, impacting service delivery/ Reforms in
healthcare insurance policies and reimbursements can affect healthcare providers'
financial stability and the way services are delivered/ Competition among healthcare
providers, pharmaceutical companies, and technology companies may lead to market
saturation and impact pricing, service quality, and innovation.

C) FMCG Industry:
• Strengths: FMCG companies often have a diverse product portfolio and well-
established brands, contributing to customer loyalty and market presence / Efficient
supply chain operations enable timely product distribution, reducing lead times and
ensuring product availability to meet consumer demand/ Consistent consumer demand
for essential everyday products ensures a steady flow of sales and repeat purchases,
providing revenue stability / Effective marketing and advertising campaigns create
strong brand awareness, driving customer engagement and sales.
• Weaknesses: Consumers in the FMCG sector are price-sensitive, leading to intense
competition and pressure on profit margins for companies/ Economic downturns or
financial instability can impact consumer spending, leading to a reduction in demand
for non-essential FMCG products/ Vulnerability to supply chain disruptions, such as
transportation issues or natural disasters, can lead to delays in production and product
delivery.

• Opportunity: Increasing online shopping trends provide FMCG companies with

opportunities to expand their online presence and reach a broader consumer base/
Rising health-consciousness among consumers presents opportunities for FMCG
companies to develop and market healthier product alternatives/ Expansion into
emerging markets and global expansion strategies allow FMCG companies to tap into
new markets and diversify their customer base / Leveraging technology for operations,
inventory management, and customer engagement can enhance efficiency, reduce
costs, and improve consumer experiences.
• Threats: The FMCG industry is highly competitive, with numerous players
competing for market share, resulting in price wars and potential erosion of profit
margins/ Trade disputes, tariffs, or geopolitical tensions can disrupt the global supply
chain, impacting production costs and pricing / Adhering to evolving and stringent
regulatory requirements across various markets poses compliance challenges and
potential legal consequences / The growth of private labels and the increasing
bargaining power of retailers can squeeze margins for FMCG manufacturers.

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 D) IT industry:
• Strengths: IT companies possess specialized knowledge and continuously innovate,
enabling them to develop cutting-edge solutions and stay competitive / IT solutions
can be easily scaled to meet clients' evolving needs, allowing for flexibility and
agility in adapting to changing business requirements / IT solutions often provide
cost-effective alternatives compared to traditional methods, attracting businesses
looking to optimize operational costs / Increasing demand for digital transformation
services positions the IT industry at the forefront, as businesses seek to leverage
technology to stay competitive and relevant.
• Weaknesses: High demand for skilled IT professionals may lead to talent retention
challenges and a potential skill gap, affecting project execution and delivery / The
industry's growth is susceptible to economic downturns, as businesses may cut back
on IT spending during challenging economic times/ The rapid pace of technological
advancements requires constant upskilling and adaptability, making it challenging
for companies to keep pace with evolving technologies/ The IT industry is highly
competitive, with numerous players competing for market share, often leading to
pricing pressure and reduced profit margins.
• Opportunities: With the growing threat of cyber-attacks, the demand for robust
cybersecurity solutions and services is expected to surge, offering a significant
market opportunity / The proliferation of IoT devices creates opportunities for IT
companies to develop applications and solutions for connected devices and smart
ecosystems / Integration of AI and machine learning in various applications presents
opportunities for creating smarter, data-driven solutions across industries.
• Threats: The persistent threat of cybersecurity breaches and data theft poses a
significant risk to IT companies and their clients, potentially leading to reputational
damage/ Competition from global outsourcing and offshoring firms, particularly in
regions with lower labour costs, may impact pricing and market share for IT
companies/ The risk of intellectual property theft and unauthorized use of proprietary
technology may affect the competitive advantage and uniqueness of IT solutions.

E) Banking industry:
• Strengths: Banks offer a wide array of financial services, including savings accounts, loans,
investment products, insurance, and wealth management, catering to diverse customer needs /
Banks possess financial expertise, employing skilled professionals who provide advice and
financial solutions to customers/ Integration of technology in banking operations enhances
efficiency, improves customer experience, and allows for the development of innovative
products and services.
• Weaknesses: The banking industry faces stringent regulations and compliance requirements,
which can be complex and costly to adhere to/ Banks are exposed to various risks such as credit
risk, interest rate risk, market risk, and operational risk, necessitating robust risk management
practices/ Banks have high operating costs due to maintaining physical branches, compliance
requirements, security measures, and technological investments.
• Opportunity: Collaborations with fintech companies and the advancement of digital banking
allow banks to offer innovative solutions, enhance customer experience, and reach broader
audience/ Leveraging data analytics provides opportunities to offer personalized financial
products and services based on customer behaviours and preferences/ The increasing adoption

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 of mobile banking and digital payments presents opportunities to enhance convenience and
accessibility for customers.
• Threats: The banking industry is a prime target for cyber-attacks, including phishing,
ransomware, and identity theft, posing significant threats to data security and customer trust/
Fintech companies and non-banking entities offer competitive alternatives, potentially drawing
customers away from traditional banks/ Sudden and severe interest rate fluctuations can affect
banks' profitability, asset valuations, and borrowers' ability to repay loans.

Based on the analysis conducted by us above we have chosen

Automobile Industry as it has proven to be the most significant
industry above all the 5 industries that have been chosen.

====================================================

Company Analysis on the basis of Industry Selected by industry analysis

A) GABRIEL INDIA
Return on Networth / Equity (%) 15.20
P/E Ratio 35.6
Basic EPS (Rs.) 9.21
PEG Ratio 1.2
ROI 15.43

Analysis of Ratios of GABRIEL INDIA

ROE: A ROE of 15.20 indicates that the Gabriel India generates a profit of 15.20 paise for
every rupee invested. This signifies the Gabriel India’s efficiency in utilizing shareholder’s
investments to generate earnings.
P/E ratio: A P/E ratio of 35.6 indicates the market value of the Gabriel India earnings is at 35.6
times its current price. This ratio helps in assessing the Gabriel India’s valuation and potential
for growth.
Basic EPS: A Basic EPS of Rs. 9.21 reflects the Gabriel India’s profitability. Higher EPS values
generally imply better financial performance. For every share owned, Gabriel India generates
a profit of Rs 9.21.
PEG ratio: A PEG ratio above 1 indicates that the stock might be overvalued, and Gabriel India
has 1.2 PEG ratio which means that the stock is slightly overvalued.

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 ROI: ROI measures the company’s profitability and efficiency in utilizing its invested money
to generate returns. Gabriel India has a ROI of 15.43, which means that for every rupee invested
Gabriel India generates a profit of 15.43 paise.

Cash Flow Analysis

No. of
12 12
months
%
Particulars
Change
Mar- Mar-
Year Ending
22 23

Cash Flow from Operating

Rs m 950 1,364 43.5%
Activities

Cash Flow from Investing

Rs m -428 -1,038 -
Activities

Cash Flow from Financing

Rs m -241 -337 -
Activities

Net Cash Flow Rs m 281 -12 -

GABRIEL INDIA Cash Flow Statement Analysis

§ GABRIEL INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 1
billion, an improvement of 43.5% on a YoY basis.
§ Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement
of 142.7% on a YoY basis.
§ Cash flow from financial activities (CFF) during FY23 stood at Rs -337 million on a YoY basis.
§ Overall, net cash flows for the company during FY23 stood at Rs -12 million from the Rs 281
million net cash flows seen during FY22.

B) AMARA RAJA BATTERIES

Return on Networth / Equity (%) 13.10
P/E Ratio 40.65
Basic EPS (Rs.) 14.7
PEG Ratio 0.3
ROI NIL

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Analysis of Ratios of AMARA RAJA BATTERIES
ROE: Amara Raja Batteries has a ROE of 13.10, which means that the company can generate
decent returns. On every rupee invested of shareholders investment, the company can generate
a profit of 13.10 paise.
P/E ratio: A P/E ratio of 40.65 indicates that the market value of Amara Raja Batteries earnings
is at 40.65 times its current price. This means that the investors are willing to pay a higher price
which could be because of the company’s growth prospects.
Basic EPS: EPS of 14.7 indicates that the company generates a profit of 14.7 for every share
owned. Higher EPS shows better financial performance.
PEG ratio: PEG ratio under 1 indicates that Amara Raja Batteries is undervalued, and the
market is not considering the company’s future growth prospects.

CASH FLOW ANALYSIS

No. of
12 12
months
%
Particulars
Change
Mar- Mar-
Year Ending
22 23

Cash Flow from Operating

Rs m 1,668 3,874 132.3%
Activities

Cash Flow from Investing

Rs m -73 -4,281 -
Activities

Cash Flow from Financing

Rs m -1,608 743 -
Activities

Net Cash Flow Rs m 177 371 109.6%

AMARA RAJA BATTERIES Cash Flow Statement Analysis

§ AMARA RAJA BATTERIES's cash flow from operating activities (CFO) during FY23 stood
at Rs 9 billion, an improvement of 44.4% on a YoY basis.
§ Cash flow from investing activities (CFI) during FY23 stood at Rs -8 billion, an improvement
of 56.5% on a YoY basis.
§ Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement
of 53% on a YoY basis.
§ Overall, net cash flows for the company during FY23 stood at Rs 600 million from the Rs -621
million net cash flows seen during FY22.

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C) MINDA CORPORATION
Return on Networth / Equity (%) 13.71
P/E Ratio 7.46
Basic EPS (Rs.) 49.9
PEG Ratio 1.1
ROI NIL

Analysis of Ratios of MINDA CORPORATION

ROE: A ROE ratio of 13.71 indicates that Minda Corporation can generate a profit of 13.71
paise for every rupee invested by the shareholders.
P/E ratio: P/E ratio of 7.46 indicates that the market value of Minda Corporation is 7.46 times
its current price. It also indicates that investors are willing to pay 7.46 times the earnings for
each share.
Basic EPS: EPS of 49.9 means that Minda Corporation is generating Rs 49.9 in profit for every
share owned.
PEG ratio: A PEG ratio around 1 indicates that the stock is fairly valued. Minda corporation
has a PEG ratio of 1.1 which means that Minda corporation’s stock is valued evenly, but is
slightly higher than its projected earnings growth rate.

No. of
12 12
months
%
Particulars
Change
Mar- Mar-
Year Ending
22 23

Cash Flow from Operating

Rs m 1,668 3,874 132.3%
Activities

Cash Flow from Investing

Rs m -73 -4,281 -
Activities

Cash Flow from Financing

Rs m -1,608 743 -
Activities

Net Cash Flow Rs m 177 371 109.6%

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MINDA CORPORATION Cash Flow Statement Analysis
§ MINDA CORPORATION's cash flow from operating activities (CFO) during FY23 stood at
Rs 4 billion, an improvement of 132.3% on a YoY basis.
§ Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement
of 5,764.4% on a YoY basis.
§ Cash flow from financial activities (CFF) during FY23 stood at Rs 743 million, an improvement
of 146% on a YoY basis.
§ Overall, net cash flows for the company during FY23 stood at Rs 371 million from the Rs 177
million net cash flows seen during FY22.

D) Exide Industry:
Return On Investment 7.2%

Return On Equity 41.26%

PEG Ratio 0.04

P/E Ratio 2.97

EPS 51.38

Cash Flow Analysis of Exide Company

§ On a year-over-year basis, EXIDE INDUSTRIES's cash flow from operating activities (CFO)
for FY22 was Rs 613 million.
§ On a year-over-year basis, cash flow from investment activities (CFI) for FY22 was Rs 663
million.
§ On a year-over-year basis, cash flow from financial operations (CFF) for FY22 was Rs -2
billion.
§ Ultimately, the company's net cash flows for FY22 were Rs -2 billion, down from net cash
flows of Rs 110 million in FY21.

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E) Apollo Tyres:
Return On Investment 46.80%

Return On Equity 2.74%

PEG Ratio 0.25

P/E Ratio 19.01

EPS 4.11

Cash Flow Analysis of Apollo Tyres

§ On a year-over-year basis, APOLLO TYRES's cash flow from operating operations (CFO) for
FY22 was Rs 22 billion.
§ On a year-over-year basis, cash flow from investment activities (CFI) for FY22 was Rs -12
billion.
§ On a year-over-year basis, cash flow from financial operations (CFF) for FY22 was Rs -12
billion.
§ Ultimately, the company's net cash flows for FY22 were Rs -1 billion, down from net cash
flows of Rs 3 billion in FY21.

Ratio Analysis of Apollo & Exide

Apollo Tyres has a higher return on investment as compared to Exide Industries. High ROI percentage
means investment gains of a project are favourable to its cost. ROI is calculated as Net Income/Cost
of investment. So, in order to icrease its ROI, Exide industries should take favourable steps which
would lead to increase in their net income.
Exide Industries has a higher return on equity ratio as compared to Apollo Tyres. High return on equity
ratio means company is good at generating shareholder value as it knows how to reinvest its earnings
wisely. Apollo tyres in order to increase its ROE should increase sales and reduce costs, improve
efficiency, increase investment in assets and reduce liabilities.
Apollo Tyres has a higher PEG ratio as compared to Exide Industries. PEG ratio above 1 is considered
unfavourable, suggesting that a stock is overvalued. Since both companies have their PEG ratio less
than 1 which means that the stock is fairly priced and undervalued.
Apollo Tyres has a higher P/E ratio as compared to Exide industries. High P/E ratio means a stock is
expensive and its price may fall in future. Hence, lower the P/E ratio better it is. Apollo Industries can
improve its P/E ratio by lowering its debt.

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 Director’s Report Analysis

Apollo tyres
Certainly, let's delve deeper into a detailed future analysis of the provided Directors Report from Apollo
Tyres:

● Industry Trends and Market Dynamics

The tyre industry is undergoing transformation globally due to technological advancements,

sustainability goals, and shifts in consumer preferences. In the future, Apollo Tyres needs to anticipate
and adapt to these changes. Electric vehicles (EVs) are gaining traction, and their distinct tyre
requirements present a growth avenue. Apollo should invest in research and development for EV-
specific tyres to capitalize on this emerging market segment.
Moreover, with the increasing emphasis on sustainability and environmental responsibility, the demand
for eco-friendly and energy-efficient tyres will rise. Apollo Tyres should prioritize developing and
promoting such tyres to align with global sustainability objectives.

● Supply Chain and Raw Material Management

Given the historical impact of raw material costs on the company's financials, Apollo Tyres should
develop a robust supply chain resilience strategy. This could involve exploring alternative sources for
critical raw materials and adopting sustainable sourcing practices to mitigate the impact of price
fluctuations and supply disruptions.
Leveraging data analytics for demand forecasting and inventory optimization can enhance efficiency
in the supply chain. Additionally, exploring partnerships with suppliers for long-term contracts can
provide stability in pricing and supply.

● Digital Transformation and Customer Engagement

Embracing digital transformation is pivotal for future success. Apollo Tyres should invest in advanced
analytics and AI to gain insights into consumer preferences and market trends. This data-driven
approach will enable the company to tailor its product offerings, marketing strategies, and customer
experiences, ultimately leading to higher customer satisfaction and brand loyalty.
Innovative technologies such as Augmented Reality (AR) can be utilized for enhancing customer
engagement. For example, creating an AR application that allows customers to virtually try out
different tyre models could significantly influence their purchasing decisions.

● Risk Management and Compliance

With the evolving regulatory landscape and the increasing focus on ethical business practices,
maintaining robust risk management processes and compliance frameworks is crucial. Apollo Tyres
should periodically review and update its risk assessment methodologies to ensure they align with
emerging risks.
Engaging with governmental and non-governmental organizations for understanding and complying
with upcoming regulations is imperative. Proactive involvement in industry discussions and policy
advocacy will position Apollo Tyres as an ethical and responsible corporate entity.

● Sustainability Initiatives

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Apollo Tyres should intensify its commitment to sustainability and corporate social responsibility
(CSR). Establishing aggressive sustainability goals, such as reducing carbon emissions and water
usage, can demonstrate the company's dedication to environmental welfare.
Investing in renewable energy sources for manufacturing facilities and promoting a circular economy
through tyre recycling programs are ways to showcase sustainability efforts. Transparently reporting
progress on sustainability initiatives in the annual report will further bolster the company's reputation
as a responsible entity.

Conclusion

Anticipating future trends, embracing technological advancements, ensuring sustainability, and

maintaining a strong ethical and compliance framework will be the cornerstones of Apollo Tyres' future
success. The company must be agile in adapting to market dynamics and proactive in implementing
strategies that cater to emerging consumer needs and expectations. By embracing innovation and
sustainability, Apollo Tyres can secure its position as an industry leader in the evolving
global tyre market.

Exide Industries
● that the appropriate accounting standards have been followed in preparing the annual financial
statements and that any major variations from those standards have been properly explained;
● That the Directors have chosen these accounting policies, applied them consistently, and made
decisions and estimates that are reasonable and prudent to present a true and fair picture of the
Company's financial situation at the end of the fiscal year and of the Company's profit for that time
period;
● The Directors have taken proper and sufficient measures to ensure that adequate accounting records
are kept in accordance with this Act's provisions in order to protect the Company's assets and to prevent
and identify fraud and other irregularities.
● that the annual accounts were produced on a going-concern basis by the Directors;
● The existence of appropriate internal financial controls, the sufficiency and efficiency of those
systems, and
● The existence, adequacy, and efficiency of systems to assure adherence to the requirements of all
applicable laws.

Future-Looking Remarks

There are forward-looking statements in this report that are subject to risks and uncertainties. The
words anticipate, believe, estimate, expect, plan, expect, intend, will, and other comparable expressions
as they relate to the Company and/or its operations are intended to identify such forward-looking
statements when they are used in this report. In light of new information, unexpected developments,
or other factors, the Company disclaims any need to publicly update or modify any forward-looking
statements. Actual outcomes, performances, or accomplishments can be very different from what is
suggested or stated in such forward-looking statements. Readers are advised not to put undue faith in
any forward-looking statements because they only reflect the situation as of the date they were made.
Along with the financial statements and related comments presented here, this Report
should be reviewed.

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 Minda Corporations
Since there were no transactions involving the following items during the year under review, the
directors said that no disclosure or reporting is necessary:

● Issuance of equity shares with varying rights to dividends, votes, and other things.
● The issuance of stock (including shares obtained via sweat equity) to Company workers under any
plan other than the ESOP mentioned in this Report.
● Aside from Ms. Pratima Ram, who receives sitting fees from Minda Instruments Limited (formerly
known as Minda Stoneridge Instruments Limited), neither the Executive Director nor the Whole-Time
Directors of the Company receive any compensation or commission from any of its subsidiaries.
● There haven't been any substantial orders issued by regulators, courts, or tribunals that might have
an influence on the Company's ability to continue as a going concern and its future activities.
● No regulator, court, or tribunal has issued any order that might have an adverse effect on the
Company's ability to continue as a going concern and its future activities.
● Information about any applications submitted or legal actions taken throughout the year under the
2016 Insolvency and Bankruptcy Code, as well as their status at the end of the financial year.
● Information on and explanations for any discrepancies between the valuation amounts completed
during one-time settlement and those completed during the process of obtaining a loan from a bank or
other financial institution.

Because of its thoughtfully designed and employee-friendly HR procedures, the business enjoys a good
working relationship with its staff. In the past many years, there haven't been any significant work
stoppages caused by labour conflicts or work halts.
By establishing policies and processes, raising awareness, and providing training to the workforce, it
continues to highlight and concentrate on workplace safety and security.

Gabriel India
● Revenue growth and profitability: When compared to the prior year, Gabriel India Limited's net sales
climbed by an incredible 37.58%. All business units, including 2&3 Wheelers, Passenger Cars,
Commercial Vehicles, and the Aftermarket, have increased demand, which is the primary cause of this
rise. Additionally, the EBITDA has increased by 42.34%, pointing to increased profitability. The
company's emphasis on cost-cutting measures is probably going to result in increased profitability in
the future.
● Economic Outlook: The upcoming years predicted economic growth is mentioned in the company's
report. The automobile and car component industries are expected to increase, and the financial
markets are in good shape. The research also emphasizes negative risks like the introduction of fresh
viral strains and a less hospitable global economic climate.
● Risk management: The report recognizes the different risks the organization faces, including those
related to the industry, the competition, technology, and procurement. By focusing on cost leadership,
vendor diversification, and localization, the organization has demonstrated that it can reduce these
risks.
● The company's CSR initiatives demonstrate its dedication to social and environmental responsibility.
Long-term sustainability and reputation enhancement are both possible through these endeavours.

In conclusion, Gabriel India Limited seems to be in a strong position for continued expansion and
financial success, with an emphasis on cost control, localization, research and development, and risk
management. However, it continues to be aware of any industrial and economic threats. The company's
focus on technology and innovation is anticipated to improve its ability to compete in the market.

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 Amara Raja Batteries
● Workplace relations:
Industrial relations remained friendly and steady over the course of the year under review. The
Directors would like to express their sincere gratitude for the cooperation from staff members at all
levels.
● A change in how business is conducted:
There was no change in the Company's line of business throughout the year under review.
● Share Capital Audit Reconciliation:
An Independent Practicing Company Secretary is conducting a quarterly audit of the Company's share
capital as mandated by the listing regulations with the goal of reconciling the total share capital,
accepted with NSDL and CDSL and held in physical form, with the issued and listed capital. The
certificate from the practicing company secretary regarding this is presented to the board of directors
as well as BSE and NSE.
● Financial position:
The net worth improved to 4551.39 crores as of March 31, 2022, with a net addition of 341.13 crores
to other equity during the year. The company did not have any interest-bearing debt as of March 31,
2022, and maintained surplus cash of 34.31 crores. CRISIL affirmed the company’s credit ratings for
its long term and short-term bank loan facilities.

We have chosen Apollo Tyres as the company because it has highest ROI and
also a good P/E Ratio which could have an opportunity to grow in the future.

The Link for excel calculations is attached below:-

https://docs.google.com/spreadsheets/d/1H63anmdRlOUZu_PZ8XAlO3G9W-
Ky5TB0/edit?usp=sharing&ouid=109404938650092213040&rtpof=true&sd=true

The Link for Power Point Presentation is attached below:-

https://prezi.com/view/oPtCPHKdY5xlWBQP7V7N/

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