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rohit1889
Senior Member
Joined: 25/Jun/2011
Location: India
Online Status: Offline
Posts: 518
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   Topic: One FMCG company worth including in portfolio
Posted: 05/Jun/2012 at 3:17pm |
This is the relative comparison of few good FMCG companies. Holding one in the portfolio for nxt 4-5 years can provide steady compounded returns.
| Company |
MCAP (Cr) |
FY12 Sales |
5 yrs Sales CAGR |
FY12 PAT |
5 yrs PAT CAGR |
Margin |
RoCE |
Equity (Cr) |
Asst Turn ovr |
MCAP/Sales |
P/E |
Payout Ratio |
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| Godrej Consumer |
18750 |
2980 |
28 |
605 |
33 |
18 |
29 |
32.36 |
6.09 |
6.3 |
31 |
45 |
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| Dabur |
18150 |
5300 |
21 |
644 |
15 |
14 |
44 |
174.07 |
4.39 |
3.4 |
32 |
50 |
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| Marico |
10840 |
2970 |
13 |
336 |
19 |
13 |
24 |
61.49 |
6.18 |
3.6 |
32 |
15 |
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| HUL |
88550 |
22120 |
6 |
2691 |
5 |
12 |
102 |
216.15 |
5.63 |
4 |
32 |
72 |
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| P & G (jun 11) |
7300 |
1000 |
13 |
150 |
8 |
15 |
30 |
32.46 |
3.2 |
7.3 |
40 |
56 |
According to above analysis, Godrej consumer is growing @ good CAGR hence is valued at 6.3 times FY12 Sales. There is a wide margin at which Godrej consumer is growing as compared to other FMCG companies. So can we bet on it for nxt 5 yrs? Views invited
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If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
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tejas.k
Senior Member
Joined: 07/Dec/2009
Location: India
Online Status: Offline
Posts: 563
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Posted: 05/Jun/2012 at 3:41pm |
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GCPL made some acquisitions/mergers in the last 2 yrs. Thats why the sales/pat CAGR looking good. Apart from numbers, one has to look at the products. Apart from good night, i cant think of any dominant product. Even here, its not a monopoly. there is all out and mortein. cinthol is in a crowded space which is already penetrated. even in hair color segment, there are so many players with better quality.
But yes. Its a great company and may outperform the rest here.
Among these, I would pick dabur. ( p/e is 28 now. not 32). Note: I may be biased since I sold out GCPL and entered dabur :-)
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vijaygawde
Senior Member
Joined: 21/Mar/2008
Location: India
Online Status: Offline
Posts: 851
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Posted: 05/Jun/2012 at 6:30pm |
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You have omitted two of the best compounding FMCG machines
1. Nestle India
2. Asian Paints
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Diversification is protection against ignorance, it makes little sense for those who know what they’re doing.
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rohit1889
Senior Member
Joined: 25/Jun/2011
Location: India
Online Status: Offline
Posts: 518
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Posted: 05/Jun/2012 at 6:52pm |
Originally posted by vijaygawde
You have omitted two of the best compounding FMCG machines
1. Nestle India
2. Asian Paints
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Thanks Vijay ji. I wonder how i forgot about them  Posting it below. Which one is top FMCG bet according to you
Edited by rohit1889 - 05/Jun/2012 at 6:53pm
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If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
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rohit1889
Senior Member
Joined: 25/Jun/2011
Location: India
Online Status: Offline
Posts: 518
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Posted: 05/Jun/2012 at 6:53pm |
| Company |
MCAP (Cr) |
FY12 Sales |
5 yrs Sales CAGR |
FY12 PAT |
5 yrs PAT CAGR |
Margin |
RoCE |
Equity (Cr) |
Asst Turn ovr |
MCAP/Sales |
P/E |
Payout Ratio |
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| Godrej Consumer |
18750 |
2980 |
28 |
605 |
33 |
18 |
29 |
32.36 |
6.09 |
6.3 |
31 |
45 |
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| Dabur |
18150 |
5300 |
21 |
644 |
15 |
14 |
44 |
174.07 |
4.39 |
3.4 |
32 |
50 |
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| Marico |
10840 |
2970 |
13 |
336 |
19 |
13 |
24 |
61.49 |
6.18 |
3.6 |
32 |
15 |
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| HUL |
88550 |
22120 |
6 |
2691 |
5 |
12 |
102 |
216.15 |
5.63 |
4 |
32 |
72 |
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| P & G (jun 11) |
7300 |
1000 |
13 |
150 |
8 |
15 |
30 |
32.46 |
3.2 |
7.3 |
40 |
56 |
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| Nestle |
43700 |
7515 |
16 |
961 |
18 |
13 |
63 |
96.42 |
3 |
5.8 |
40 |
56 |
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| Asian Paints |
35700 |
7970 |
23 |
960 |
28 |
12 |
52 |
95.92 |
5.23 |
4.5 |
38 |
46 |
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If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
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Bhupan
Senior Member
Joined: 22/Jun/2009
Location: India
Online Status: Offline
Posts: 241
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Posted: 05/Jun/2012 at 8:44pm |
Originally posted by vijaygawde
You have omitted two of the best compounding FMCG machines
1. Nestle India
2. Asian Paints |
Vijay Bhai can we also include ITC in this ? I was trying to retrieve details which have been added in coulms above .
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FutureBull
Senior Member
Joined: 06/Feb/2009
Location: India
Online Status: Offline
Posts: 1868
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Posted: 05/Jun/2012 at 10:12pm |
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the slowing economy brings bad news from unexpected quarters
http://www.moneycontrol.com/news/cnbc-tv18-comments/armys-csd-curbs-spendingfmcg-products_713871.html
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‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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rohit1889
Senior Member
Joined: 25/Jun/2011
Location: India
Online Status: Offline
Posts: 518
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Posted: 05/Jun/2012 at 11:11pm |
Originally posted by FutureBull
the slowing economy brings bad news from unexpected quarters
http://www.moneycontrol.com/news/cnbc-tv18-comments/armys-csd-curbs-spendingfmcg-products_713871.html |
Few days back IRCTC had banned all food products packed in plastic from IRCTC canteens on central railway platforms .(Lays, Kurkure, biscuits,etc.)
http://www.asianage.com/mumbai/revoke-plastic-ban-stations-360
Wonder how much does these contribute in Sales of these FMCG companies
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If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
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