A Comparative Analysis of Value Creation, Market Capitalisation and Dividend Strategy in India?s High-Market-Cap FMCG Companies
Abstract
This paper presents a comparative analysis of value creation, market capitalisation, and dividend strategies among five high-market-capitalisation Fast-Moving Consumer Goods (FMCG) companies in India: Hindustan Unilever Limited (HUL), ITC Limited, Nestl? India, Varun Beverages Limited (VBL), and Britannia Industries Limited. Utilising a five-year period of financial data (2021?2025), the study examines key metrics such as Market Capitalisation, Return on Equity (ROE), and Dividend Payout Ratio. The findings reveal significant heterogeneity in value creation approaches, with companies like Nestl? India demonstrating superior operational efficiency (ROE) despite a smaller market cap than HUL and ITC. Conversely, VBL exhibits a low dividend payout but high growth, reflecting a focus on reinvestment for future value. The analysis underscores the differential impact of dividend policy on market valuation in the Indian FMCG sector, suggesting that investor preference is split between high-growth reinvestment and consistent, high-payout dividend streams.
Keywords
Value Creation, Market Capitalisation, Dividend Strategy, FMCG, Return on Equity.
Citations
IRE Journals:
Adarsh Mishra, Prof. Audhesh Kumar "A Comparative Analysis of Value Creation, Market Capitalisation and Dividend Strategy in India?s High-Market-Cap FMCG Companies" Iconic Research And Engineering Journals Volume 9 Issue 5 2025 Page 313-318 https://doi.org/10.64388/IREV9I5-1711800-6599
IEEE:
Adarsh Mishra, Prof. Audhesh Kumar
"A Comparative Analysis of Value Creation, Market Capitalisation and Dividend Strategy in India?s High-Market-Cap FMCG Companies" Iconic Research And Engineering Journals, 9(5) https://doi.org/10.64388/IREV9I5-1711800-6599
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