A Study on Fundamental Analysis of FMCG and Pharmaceutical Companies in India

- Hitarthi Ganatra, Student, Faculty of Management, GLS University, Ahmedabad

- Hetal Pandya, Assistant Professor, Faculty of Management, GLS University.

Abstract:

An investment analysis is essential for the benefit of risk reduction and maximizes the gain.The investment analysis on stock market has two main approaches namely technical analysis and fundamental analysis. This study is focused on fundamental analysis of FMCG & pharmaceutical companies, which include selected four companies for a period of five years from 2015 to 2019. Fundamental analysis is studied in three parts. Economic analysis deals with fundamental factors like GDP, IIP, fiscal deficit, inflation, current account deficit etc. In industry analysis sectors are analysed based on entry barriers, type of industry, government interference, Porter’s five force model. Finally, Company analysis deals with various ratios such as liquidity, profitability & management efficiency ratios. Hence, we can conclude that from FMCG sector HUL & NESTLE and from pharmaceutical sector CADILA &  REDDYSLAB showed good result in all the ratios selected.

Keywords:

Fundamental analysis, Indian FMCG & Pharmaceutical companies, EIC approach, PESTLE analysis.

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