47807114 hul vs dabur financial analysis snapshot

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Financial Statement Analysis

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Page 1: 47807114 HUL vs DABUR Financial Analysis Snapshot

Financial Statement Analysis

Page 2: 47807114 HUL vs DABUR Financial Analysis Snapshot

FMCG INDUSTRY – RECENT PERFORMANCE

Page 3: 47807114 HUL vs DABUR Financial Analysis Snapshot

MARKET SHARE OF TOP PLAYERS

Page 4: 47807114 HUL vs DABUR Financial Analysis Snapshot

SALES TURNOVER

Page 5: 47807114 HUL vs DABUR Financial Analysis Snapshot

OBJECTIVE

Perform vertical analysis of the Balance Sheet and P&L account

Interpret significant changes in reserves and surplus, current liabilities, debtors, cash and bank balances

Compare common size statements for different years to reveal important changes in the Balance Sheet and P&L account.

Perform ratio analysis Analyze the companies from an investor’s

and creditor’s point of view

Page 6: 47807114 HUL vs DABUR Financial Analysis Snapshot

HUL INTERPRETATION

Reserves & Surplus of the company has decreased in the given period.

Secured Loans – Percentage increase due to disproportionate decrease in total assets. Reduction in absolute terms.

Unsecured loans taken have increased - utilized in the current liabilities.

Increase in net block of assets – high profits earned invested in assets.

Investments – Percentage increase, reduction in absolute terms. Used to payoff secured loans.

Page 7: 47807114 HUL vs DABUR Financial Analysis Snapshot

DABUR INDIA LTD.INTERPRETATION

Reserves & Surplus of the company has increased due to higher profits.

Short term as well as the Long term loans of the company have decreased due to payoffs from higher profits.

Increase in the net block of assets – Investments from higher profits.

Cash & Bank balance of the company has increased by more than 70%.

Page 8: 47807114 HUL vs DABUR Financial Analysis Snapshot

COMPARISON OF DABUR INDIA & HUL

Reserves & Surplus, and Net worth for Dabur India is slightly greater than that for HUL.

Percentage of secured/unsecured loans as well as current liabilities is greater for HUL as compared to Dabur India - former uses greater debt financing than latter.

Although liabilities of HUL are far greater than those of Dabur India, so are its current assets and investments

Page 9: 47807114 HUL vs DABUR Financial Analysis Snapshot

FINANCIAL RATIO ANALYSIS - HUL

Page 10: 47807114 HUL vs DABUR Financial Analysis Snapshot

FINANCIAL RATIO ANALYSIS – DABUR

Page 11: 47807114 HUL vs DABUR Financial Analysis Snapshot

COMPARISON OF HUL AND DABUR INDIA LTD.

Interest coverage ratios - Dabur Less than HUL – Safer to give loans to HUL

Gross profit margin of Dabur is more than HUL

– More efficient production processes ROE of HUL is higher than Dabur -

investments made by HUL are more justified as gross profit margin of Dabur is more than HUL but the ROE is still less.

EPS of HUL is better than Dabur – Investors should invest in HUL as compared to Dabur.

Page 12: 47807114 HUL vs DABUR Financial Analysis Snapshot

THANK YOU