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Showing posts from May, 2020

A Valuable FMCG Company for Long Term Investment

A household name for FMCG products in India, the company has strong visibility in growth and earnings in India’s long runway story - As investors shift to safe havens, the Stock has rallied significantly in past few weeks. The question is, if this ‘driver of consumption’ valuable at this Price? Revenue for FY20 stood at INR 397.8 Billion recording a 1.20% Y-O-Y growth with an Operating Profit Margin of 22.27%. For Q4 FY20, revenues were at INR 92.11 Billion with a negative growth Year-on-Year and an Operating Profit Margin of 19.85%. In the past 5 years, revenue has compounded by about 4.60%. The OPM improved from 15.2% in FY 2015 to 22.2% in FY 2020. The Company attributed the Q4 decline due to supply chain disruption during the first phase of the Lockdown. The Lockdown is expected to affect the production and demand destruction till September 2020 and then show improvements. Stock Returns Percentage 1 Year 23.82% 3 Years 28.00%