BFM Project

Deadline : 11th September, 2017 8:30 am to be submitted to CR as a printout, CR to submit all

printouts to Prof Pooja Gupta at 8:55 am on 3rd Floor Academic Block

Section : A

Group No:

17020841027 Rashi Chaudhari

Comparative ratio analysis for the past year and provide comments.

Sandesh 21st Century Comments for Sandesh

Fox
ROA 12.65 5.60 Profit per rupee of
assets is 12.65%
ROE 15.23 17.84 15.23% of the net
income goes to
shareholders
RR 95.31 100% 95.31% of the income
is retained
D/E 0.03 1.41 Debt is 0.03 times of
equity
D/A 58.25 1.26 Debt is 58.25 times of
assets
ROI 14.78 7.83 ROI is 14.78% which is
considered good
CR 2.94 2.12 CR is greater than 1
DPR 4.69 - Retention is lesser than
shareholder’s income.
Around 4 times of net
income is paid out.
QR 2.69 1.51 2.69 times are the
current assets
excluding inventory
Inventory 15.93 5.67 Sales is 16 times of
Turnover inventory
Ratio
Asset 0.73 0.56 Sales is 0.73 times of
Turnover assets
Ratio
PBT margin 33.29 15.20 Profit before tax is
33.29% of sales
Net Profit 21.71 10.78 21.71% is the net profit
Margin margin of Sandesh

Sandesh is retaining maximum and paying very less dividends. Thus they are relying on the internal
sources and less on external funds.
Do a comparative ratio analysis of your industry with companies of the same industry in the other
countries.

Comparing the ratios of both the companies, it is found that Sandesh has better ratios compared to
21st Fox. This is because ROI of 21st Fox is almost 50% less than that of Sandesh. But ROE of 21st Fox is
better than that of Sandesh.

Analyse the growth rates and EFN (at industry growth rate) for your companies in the industry.

Industry growth rate = ROA*RR/1-(ROA*RR)

Particulars Sandesh 21st Century Fox

EFN 26.34
IGR 13.7 12.7
SGR 16.9 21.7

_______________

From your analysis above, mention your recommendations to the investors below:

“BUY” (Shares of companies you recommend

to be bought.)
“SELL” (Shares of companies you recommend
to be sold)
“HOLD” (Shares of companies you recommend
to be held”)