Stock valuation of FMCG company in Bangladesh: a comprehensive fundamental and technical analysis of Marico Bangladesh Limited

Abstract

Based on my research on the company in this report, I performed a fundamental and technical approach to find out the intrinsic value of Marico Bangladesh Limited (MBL), an FMCG company of Bangladesh. The evaluation is intended to give information regarding current stock worth of MBL and offer sound investment advice based on my analysis. I have valuated MBL’s stock using methods like DDM, FCFE and relative valuation to determine the company’s prospects in terms of financial performance. In the first chapter, I depicted my internship experience at Marico Bangladesh Limited. This entails a description of my role in MBL which includes creating a dividend tracker, reconciliation of the dividend payments etc. Finally, challenges that I have faced and recommendations that I suggested for the improvement of the internship programme are given. In the organizational analysis, the research covers a thorough assessment of the company’s management system, marketing strategies, financial and its operational performance. Strategic management concepts regarding MBL’s leadership style, its HR practices, and sustainable strategies are analyzed. The paper also looks at MBL’s current marketing strategies to sustain its competitive advantage within the FMCG industry. I have also analysed MBL through using the financial valuation ratios that show its financial performance during 5 years concerning liquidity, profitability, and efficiency etc. The operation and information system practices along with industry analysis are also done. In the last part, MBL’s return distribution, Capital Asset Pricing Model and beta has been calculated to capture the overall performance of MBL’s stock. Then based on my fundamental and technical analysis, investment recommendations are given for investors who are holding the MBL stock or thinking of buying the stock. The results drawn in this study show that MBL has been financially healthy throughout the years, stable dividend policies, optimal cost control measures and right market positioning. Moreover, a brief assessment of investment of MBL with its two closest rivals Unilever Bangladesh Limited and Reckitt Benckiser Bangladesh Limited has been analysed thoroughly by using beta, return distribution and Monte Carlo Simulation. Therefore, the aim of this research is to provide a detailed basis for MBL’s business, operational, and financial analysis and to offer practical recommendations to shareholders whether to buy, sell or hold the MBL stock based on my fundamental and technical analysis. The study thus confirms the need to use financial and operational performance measures to assess the worth of MBL’s stake.