Security Analysis of Fmcg Sector

1848 WordsSep 1, 20108 Pages
ANALYSIS :- In this era of high volatility in markets, investors look at several parameters before investing in stocks for example EPS, earning growth rate, debt/equity , p/e ratios. These parameters will no doubt help us to select the best companies but beta is one such parameter which can tell us about the returns with the volatility of a particular stock with respect to market. The concept of beta is actually very simple - it 's a measure of individual stock risk relative to the overall stock market risk. Beta analysis can provide great insights into the movements of a particular stock relative to market movements Before investing in a company 's stock, the beta analysis allows an investor to understand if the price of that…show more content…
STOCK ANALYSIS IN RECESSION PERIOD(MID 2008-MID 2009):- As an analyst we see that the market is more volatile that the security,as we can easily see that the risk factor of NSE is increased from 7.34% to 15.73%.While there is no huge risk involved in any of the five security that are from FMCG sector.The major company of our portfolio hit the during the recession is Britannia since the beta factor of the company changes from 0.459 to 0.532 which shows the vis-a-vis change of security due to volatility of market.The rate of return for ITC comes down to 0.33 from 2.148% because of economic meltdown.The HUL rate of return decreases by 28.57%. HUL in 2007 put through the Rs 630 crore share buyback programme at Rs 207/share.That particular buyback is at Rs 17% premium to the prevailing market price for the stock. In Semptember2008 market share slips quarter in key areas of

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