Bajaj Consumer Care Ltd.: Discounted Cash Flow (DCF) Valuation
In July 2017, a financial analyst from an Indian investment bank was assigned the task of identifying a suitable company from the fast-moving consumer goods (FMCG) sector for the bank's portfolio. The bank wanted to expand its investment portfolio from the mobile Internet, information technology, health care, financial technology, and e-commerce sectors into the FMCG sector. After researching three significant players in the personal care segment and comparing these companies' key ratios, the analyst determined that one of them, Bajaj Consumer Care Ltd., was a suitable candidate for valuation. Now, he had to perform a buy-side valuation of the company using the discounted cash flow technique to determine whether Bajaj Consumer Care Ltd. would be the right fit for his company's investment plans. Chhavi Mehta is affiliated with International Management Institute. Monika Chopra is affiliated with International Management Institute.