Britannia is one of the best able-bodied accepted brands in India and it is the bazaar baton in the biscuit industry with 38% bazaar share. Britannia Industries is accordingly endemic by Group Danone and Wadia Group. Mr. Nusli Wadia is the administrator of the alignment which is based in Kolkata, West Bengal. The acquirement for the budgetary year 2010-11 stood at Rs. 4670 crores and the Accumulation afterwards Tax at Rs. 134.34 crores. The access in acquirement of Britannia from the antecedent year was 21.90% and the access in accumulation afterwards tax was 30.19%.
COLGATE PALMOLIVE Company Profile: Colgate Palmolive India is the bazaar baton in articulate affliction and hygiene in the country. Mr. D. Samuel is the administrator of the organization. The address of Colgate Palmolive India is in Mumbai, Maharashtra. The revenues for the budgetary year 2010-11stood at Rs. 2327.36 crores and the Accumulation afterwards Tax at Rs. 402.59 crores. The access in acquirement for Colgate Palmolive from the antecedent year was 13.08% about the accumulation afterwards tax beneath by 7% due to ascent article costs.
COMPARATIVE FINANCIAL ANALYSIS 1. Balance per allotment (EPS) EPS measures the accumulation accessible to the disinterestedness shareholders per allotment i.e. the bulk that they can get on every allotment that has been held. The balance per allotment of Britannia Industries beneath in 2009 and 2010 with abbreviation profits. The profits accept bargain due to acceleration in costs of abstracts and commodities. About the aggregation showed signs of advance afresh in 2011 and is accepted to balance added in 2012. Meanwhile the EPS of Colgate Palmolive has consistently bigger over the accomplished few years. It alone alone hardly in 2011 due to inflationary article costs. According to the trend Colgate Palmolive has beneath fluctuations and will be adopted for safe and bourgeois investments.
1. Net Accumulation Margin Net accumulation allowance is actual advantageous back comparing companies in agnate industries. A college accumulation allowance indicates a added assisting aggregation that has bigger ascendancy over its costs compared to its competitors. Looking at the balance of a aggregation generally does not acquaint the absolute story. Added balance are acceptable but an access does not beggarly that the accumulation allowance of a aggregation is improving. In the blueprint accustomed aloft Colgate is acutely outperforming Britannia in agreement of the Net Accumulation Margin. Despite a slight abatement in accumulation allowance in 2011 it is accepted that Colgate will consistently accept a aerial arrangement in amid 15% to 20%.
1. Debt-Equity Ratio A aerial debt disinterestedness arrangement suggests that a aggregation has financed its advance mostly via debt. We can acutely see that the debt disinterestedness arrangement of Britannia is abundant college compared to that of Colgate Palmolive. It displays that Britannia Industries acclimated a lot of debt to accounts its operations abnormally in the budgetary year 2009-10. The debt disinterestedness arrangement bargain hardly in 2010-11 but the aggregation needs to accomplish a massive accomplishment to advance its basic structure. Sometimes the bulk of debt costs may outweigh the acknowledgment that the aggregation generates on the debt through advance and business activities and can advance to bankruptcy. Meanwhile Colgate Palmolive has managed to consistently administer a baby allotment of 2% to 3% of debt in its basic structure.
1. Accepted Ratio The accepted arrangement is a reliable apparatus for barometer a company’s liquidity. The arrangement indicates whether the abutting is able to accomplish funds to accomplish all bare payments in the future. The blueprint indicates that Britannia is bigger than Colgate in agreement of clamminess backbone and is able to pay off its liabilities added successfully. Still it will be adorable that both the companies accept a accepted arrangement of abutting to 2:1.
1. Allotment Cover Dividend Awning refers to the admeasurement to which a company’s allotment is akin or beyond by the balance accessible for administration to shareholders. The admeasurement of the allotment awning gives an adumbration of a company’s adeptness to advance its allotment should profits fall. Britannia has a aerial allotment awning compared to Colgate. It shows that Britannia has a bigger adeptness to advance its assets if the profits drop. The allotment awning of Colgate Palmolive is low and the aggregation has almost abiding profits. Therefore the akin of awning indicates that assets are not that abundant at risk.
1. Account Days It is a banking admeasurement of a company's achievement that gives investors an abstraction of how continued it takes a aggregation to about-face its account into sales. Generally, the lower the account canicule the bigger it is. In the aftermost 3 years the account canicule for Colgate has been consistently about 15 days. About the account is austere for Britannia with consistently accretion account canicule over the years. An account canicule of 36 for 2011 is a actual annoying assurance for Britannia.
Technical Analysis Technical Assay involves tracking bulk movements and trading volumes in assorted balance to analyze patterns in the bulk behaviour of accurate stocks, alternate funds, bolt or options in specific bazaar sectors or in the all-embracing banking markets. The ambition is to adumbrate probable, generally abbreviate appellation bulk changes in the investments advised to accept an adapted trading strategy.
1. Allegory of allotment change in banal prices of companies with changes in BSE FMCG The aloft blueprint displays the allotment change in bulk of Britannia stocks over the accomplished two years in allegory to the changes in BSE FMCG index. In September 2010 the Britannia banal had a 30% acceleration demography 18th June 2010 as base. The banal had a aloft abatement of 9.15% in February 2011 but it ailing at 60.13% in March 2012.
The movement in Britannia stocks backward beneath the FMCG Basis for majority of the accomplished 2 years. About it added appreciably in the 4th division of 2011-12 and outperformed the FMCG index. In the new budgetary year the allotment prices fell hardly afresh and the 2 year access was 41.2% in allegory to 54.65% of FMCG index. It can be accepted that the allotment movement will break beneath but almost abutting to the accepted movement of prices of the FMCG sector.
As apparent acutely in the aloft blueprint the allotment change in the prices of Colgate shares (taking 18th June 2010 as base) is acutely lower than changes in the BSE FMCG index. The banal has underperformed and alike had a abrupt abatement in aboriginal 2011 but it recovered in backward 2011 and the antecedent months of 2012 and alike akin the FMCG basis standard. The Banal had a aloft abatement in April 2012 and the 2 year acceleration was 34.69%. It is abundant lower than the 54.65% access of BSE FMCG index. About one absolute aspect of the bulk movements of Colgate is that the animation is beneath than Britannia.
1. Bollinger Bands Bollinger Bands was developed by acclaimed abstruse banker John Bollinger is one of the best accepted abstruse assay techniques. A Bollinger bandage plots two accepted deviations abroad from a simple affective average. As accepted aberration is a admeasurement of animation Bollinger Bands acclimatize themselves to the bazaar conditions. Back the bazaar becomes added airy the bands widen i.e. move added abroad from the average. The abbreviating of the bands is generally acclimated as an aboriginal adumbration that the animation is about to access sharply.
The blueprint accustomed aloft shows the bulk movement of Britannia shares for a aeon of 2 years (from 27th May 2010 to 29th May 2012). The red bandage in the blueprint denotes the 20 day affective boilerplate of the banal price. The two atramentous curve denote the Bollinger bands i.e. the accepted aberration of bulk 2. The afterpiece the prices move to the aerial bandage the added overbought is the market. The afterpiece the prices move to the lower bandage the added oversold is the market.
At the end of April 2012 the bulk is trading abreast the lower bandage bandage which agency that there is overselling in the market. It will be appropriate for investors to buy Britannia stocks at this akin as the anticipation of a trend changeabout is actual aerial here. Once the prices ability the aerial bandage bandage the investors can advertise off the shares. One of the instances of investors demography an advantage can be apparent in March 2011. A being who bought shares at this akin and captivated these shares till June 2011 back the prices affected the aerial bandage bandage can acquire a acknowledgment of about 25%.
The blueprint accustomed aloft shows the bulk movement of Colgate shares for a aeon of 2 years (from 26th May 2012 to 28th May 2012). The red bandage indicates the 20 day affective boilerplate of the banal price. The two atramentous curve denote Bollinger bands i.e. the accepted aberration of bulk 2. The afterpiece the prices move to the aerial bandage the added overbought is the market. The afterpiece the prices move to the lower bandage the added oversold is the market. Compared to Britannia the animation of Colgate prices is beneath and the accident complex is low. About it additionally agency that the investors will not be able to acquire big allotment like in Britannia.
1. Candlestick charts In adjustment to actualize a candlestick blueprint a abstracts set is appropriate which contains open, high, low, abutting ethics for anniversary time aeon that has to be displayed. The candlestick blueprint accumulation is as follows: Long white candlesticks appearance able affairs pressure. The best the white candlestick, the added the abutting is aloft the open. This indicates that prices avant-garde decidedly from accessible to abutting and buyers were aggressive. Meanwhile continued abounding candlesticks appearance able affairs pressure. The best the abounding candlestick, the added the abutting is beneath the open. This indicates that prices beneath decidedly from the accessible and sellers were aggressive.
The accustomed candlestick blueprint shows the bulk movements of Britannia in the accomplished 6 months. In backward December 2011, January and February 2012 there has been able affairs pressure. In the alpha of March there is a actual continued lower adumbration and a abbreviate aerial shadow. It agency that sellers bedeviled the affair and collection the prices alike lower. About buyers resurfaced to bid prices college by the end of affair and the able abutting created a continued lower shadow. A agnate instance occurred in the 2nd anniversary of April. All-embracing there accept been several accessory bullish phases in the accomplished six months but a ample bulk of affairs by investors has added the prices by about 80 points.
In the case of Colgate Palmolive it is easier to authorize trends. There accept been phases in which the banal was bearish for several canicule in a row and agnate there accept been phases (like in the additional anniversary of May 2012) back the banal was bullish for several canicule in a row. There was a aloft abatement in prices in the aftermost anniversary of February and investors who bought the shares at this akin and captivated it and awash in the additional anniversary of May would accept aerial returns.
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