A Comparative Study on Equity Analysis and Investment Evaluation of ITC Limited and Dabur India Limited

Abstract

Abstract

This study presents a comparative equity analysis and investment evaluation of ITC Limited and Dabur India Limited, two prominent companies in the Indian Fast-Moving Consumer Goods (FMCG) sector, for the period FY2021 to FY2025.Using secondary data drawn from the annual reports of both companies, the study applies Ratio Analysis -Net Profit Margin, Return on Equity (ROE), Current Ratio, Debt-Equity Ratio, Earnings Per Share (EPS), and Price-Earnings (P/E) Ratio -together with Compound Annual Growth Rate (CAGR) analysis of Revenue, Net Profit, and EPS, to assess profitability, liquidity, solvency, shareholder returns, market valuation, and growth performance.The findings show that ITC Limited consistently outperformed Dabur India Limited across nearly every metric examined: a higher Net Profit Margin (24.80%-31.27%versus 14.86%-17.71%),a stronger Return on Equity (24.52%-30.56%versus 17.10%-21.31%),a higher Current Ratio, a markedly lower Debt-Equity Ratio, a higher Earnings Per Share, and a more attractive (lower) P/E Ratio.ITC also recorded higher CAGR in Revenue (11.15% versus 8.22%), Net Profit (8.34% versus 3.86%), and EPS (8.25% versus 3.89%) over the study period.The study concludes that ITC Limited demonstrates superior financial fundamentals, stronger profitability, lower financial risk, and stronger longterm growth potential, and is therefore recommended as the more favourable stock for long-term equity investment among the two companies studied.