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International Journal of Social Science & Interdisciplinary Research______ISSN 2277-3630 IJSSIR, Vol. 5 (1), JANUARY (2016), pp. 57-63 Online available at indianresearchjournals.com

A COMPARATIVE STUDY OF PROFITABILITY AND LIQUIDITY BETWEEN HINDUSTAN LTD. (HUL) AND

ANJALI SHARMA

RESEARCH SCHOLAR, JAIPUR NATIONAL UNIVERSITY, RAJASTHAN, INDIA.

ABSTRACT:

In this paper an attempt has been made to analyze the liquidity and profitability of two leading FMCG companies in India – HUL Ltd and Dabur India, over a period of five years (2010-11 and 2014-15). FMCG sector is the fourth largest sector of Indian economy and rapid changes in consumer tastes, income and preferences has affected FMCG sector with a great pace. Liquidity and profitability both plays a crucial rule in the smooth functioning of a firm. Lack of liquidity and profitability can hurdle the growth of firm.

By this study it is observed that liquidity and profitability of Dabur India Ltd. is satisfactory and is enjoying its continuous growth in this sector. Whereas in HUL Ltd. profitability position is satisfactory but liquidity position is not upto the mark level. From this study it is concluded that in Dabur India Ltd. there is significant difference in the liquidity and profitability position of the company whereas in HUL Ltd. there is no significant difference in the liquidity and profitability position of the company. (The profitability was strong whereas the liquidity position was not satisfactory.) HUL must strengthen its short-term solvency position, so that it can meet obligations timely.

KEYWORDS: Hindustan Unilever Ltd. (Hul), Dabur India, FMCG, Liquidity Analysis, Profitability Analysis. ______

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International Journal of Social Science & Interdisciplinary Research______ISSN 2277-3630 IJSSIR, Vol. 5 (1), JANUARY (2016), pp. 57-63 Online available at indianresearchjournals.com

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