COMPARATIVE FINANCIAL ANALYSIS

vs.

CONTENTS

1. 2. 3. 4. 5.

Introduction Company Profiles Ratio Analysis The cost of Capital The working capital Model

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2 1. Introduction vs. Scope of Analysis 1 • Analysis of Financial performance of the two firms Understanding their competitive advantage over each other Future performance forecasting Recommendations • • • 2 .

Oral Care. Dabur Red Toothpaste.Fruit juices & beverages Fem . Health Care. Home Care & Foods.Fairness bleaches & skin care products • • • • 3 . Skin Care. Vatika. Company Profiles Dabur India Limited is the fourth largest FMCG Company in India. Dabur Lal Dant Manjan.000 Crore)  9 Billion-Rs. Babool. Dabur Chyawanprash.Premium hair care Hajmola .Ayurvedic healthcare products Vatika . brands: Dabur Amla.Tasty digestives Réal .2 Billion (Rs 10.2. Dabur operates in key consumer products categories like Hair Care.  Revenues = US$600 Million (Rs 2834 crore)  Market Capitalization = US$2. Hajmola and Dabur Honey Master brands • Dabur . Réal.

1. Expert and Ezee. are household names across the country. in Millions )  Total Income =Rs. 11331. with Personal and Home Care Products. Company Profiles Godrej Consumer Products (GCPL) is a leader among India's Fast Moving Consumer Goods companies. No.199 ( USD in Millions )  Market Cap = 96494. among others.468 Million ( year ending Mar 2009) Master brands • • • • • Cinthol Godrej Expert Renew Godrej no.  Revenue= 223. 1 Colour soft 4 . Their brands. which include Cinthol.484 Million ( year ending Mar 2009)  Net Profit = Rs. 1615.3027764 ( Rs.2.

Ratio Analysis 5 .

67 0.71 0.6 0.54 1.04 2.89 0.13 0.3.73 0.55 0. Ratio Analysis Current Ratio DABUR GODGEJ Quick Ratio DABUR GODGEJ 2008-09 2007-08 2006-07 2005-06 2004-05 1.38 1.87 0.5 1.95 1.64 2007-08 2006-07 2005-06 2004-05 6 .11 0.93 0.24 1.6 2008-09 1.12 0.78 2.

11 16.8 0. Ratio Analysis Cash Ratio DABUR GODGEJ Gross profit Ratio DABUR GODGEJ 2008-09 2007-08 2006-07 2005-06 2004-05 0.06 0.22 0.06 2007-08 2006-07 2005-06 2004-05 7 .14 0.93 0.14 0.11 0.91 17.06 17.12 0.06 0.3.03 0.14 2008-09 17.12 0.93 0.37 45.11 0.03 0.

05 0.67 2007-08 2006-07 2005-06 2004-05 8 .02 0.89 1.19 0.95 18.18 13.03 0.77 11.2 14.3.12 2008-09 15.12 0.59 14.06 0. Ratio Analysis Net Profit Ratio DABUR GODGEJ Debt-equity Ratio DABUR GODGEJ 2008-09 2007-08 2006-07 2005-06 2004-05 15.5 15.2 0.22 16.14 0.28 15.05 0.

07 2007-08 2006-07 2005-06 2004-05 9 .3 26.7 35.26 112.37 2008-09 25.63 99.94 39.3.54 7.94 12.52 11.11 11. Ratio Analysis Inventory-turnover Ratio DABUR GODGEJ Debtors-Turnover Ratio DABUR GODGEJ 2008-09 2007-08 2006-07 2005-06 2004-05 10.64 9.08 61.25 5.53 7.95 81.65 9.1 93.67 22.7 6.

3 7.34 10 2005-06 2004-05 .6 9.18 4. Ratio Analysis Fixed Assets turnover Ratio DABUR GODGEJ 2008-09 2007-08 2006-07 4.41 4.84 4.82 8.51 7.3.67 8.47 11.

The Cost Of Capital 11 .

4. The cost of capital Cost Of capital Cost Of Debt Cost Of Equity 12 .

4.33% 13 . Cost of CAPITAL Cost Of Debt DABUR GODREJ 10.0% 8.

kRF)b = kRF + (RPM)b 2. Cost of capital Cost Of Equity 1.4. CAPM: ks = kRF + (kM . DCF: ks = D1/P0 + g 14 .

0% Risk free return =4.0% Risk Premium =7.91% Market return = 20% 11.48 GODREJ B= 0. Cost of capital Cost Of Equity DABUR B =0.0% Market Return =15.4.79% 15 .4% 10.39 Risk free return=8.

4.00% 15 . Cost of capital Weighted Average Cost of Capital DABUR 11.

The Working Capital Model 11 .

5. The working capital Model The short term operating activities of the firm & their impact on cash & working capital 15 .

The working capital Model THE OPERATING CYCLE & THE CASH CYCLE .5.Short Term Operating Activities : 1 2 Buying raw-material Paying cash & purchases How much inventory to order To borrow / draw down cash balance 3 Manufacture the product Choice of production technology 4 5 Selling the product Collecting cash Offer cash / credit term to the customer How to collect cash 15 .

1 19384.01 20114.07 12 .95 47.19 9355.69 26171.23 16099.98 Beg End Net Sales 17289.5.64 Beg End GODGEJ Inventory 19771.62 A/C Receivables Beg End A/c Payables 14873.72 86745.43 11236.39 Beg End Net Sales Cogs 18.87 239616.17 81623.94 Cogs 196953. The working capital Model DABUR Inventory Beg End A/C Receivables Beg End A/c Payables 10046.

5.06 2623 8 times 0.9 Godrej 14563. The working capital Model Avg Inventory Inventory turnover Inventory pd Dabur 23143.22 22.16 8.21 18336.27 times Receivables pd Avg payables Payables turnover Payables pd 16.95 times 61.25 33.7 times 34.11 69.6 5.5 times 42.4 5.51 times 15486.98 10.3 Avg Receivables Receivables turnover 10641.139 13 .

55 Receivable Period 69.3 Operating Cycle 130.11 GODREJ Operating Cycle 59. The working Capital Model DABUR Inventory Period 42.5.139 Operating Cycle 130.9 Operating Cycle 59.11 days Cash Cycle 25 days Inventory Period 61.11 Receivable Period 16.25 A/c Payable period 0.21 A/c Payable period 34.55 days Cash Cycle 130 days 14 .

PRESENTED BY: NEHA LUTHRA & SAHINA PURI 18 .

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