A Study of Fundamental Analysis of FMCG Sector with Special Reference to ITC Ltd.

Abstract

In the world of finance, the study of fundamental analysis has a very crucial role in evaluating the performance and value of the companies. By examining variousfinancial and non-financial factors, fundamental analysis helps investors and analysts assess the intrinsic worth of a company's stock. In this context, the FMCG (Fast-Moving Consumer Goods) sector has garnered significant attention due to its stable growth potential and its ability to withstand economic fluctuations. This study aims to conduct a comprehensive analysis of the FMCG sector, with a special focus on ITC Ltd., a leading conglomerate in India. ITC Ltd. is a diverse company with a significant presence in various FMCG segments, including cigarettes, packaged foods, personal care products, and stationary items. By examining the fundamental aspects of ITC Ltd. and comparing them with industry trends and competitors, this research attempts to provide significant insights about the company's financial performance, growth prospects, and potential investment opportunities. The FMCG industry is distinguished by fierce rivalry, shifting consumer tastes, and shifting market dynamics. Therefore, understanding the fundamentals of a company like ITC Ltd. becomes imperative for investors, analysts, and market participants. By conducting a detailed analysis of key financial ratios(main ratios), like profitability, liquidity, efficiency, and solvency ratios, this study will evaluate the financial health and stability of ITC Ltd. Additionally, non financial factors, including market share, brand reputation, innovation, and sustainability initiatives, will also be considered to provide a holistic view of the company's position within the FMCG sector