Performance Evaluation of Dabur India Ltd through Profitability Ratio Analysis: A Case Study

Abstract

Purpose: Ayurveda which is one of the oldest healing sciences is considered a holistic healing system. In Sanskrit, the word ‘Ayurveda’ means ‘The Science of Life.’ The knowledge of Ayurveda originated in India over a period of more than 5000 years. It is also called as “mother of all the healing.” It is based on the belief that the wellness of a human body depends on a proper balance between three aspects like mind, body, and spirit. Several drugs and health products have been produced since ancient times. The present study is focused on assessing the performance of Dabur India Company through the profitability ratio, identifying the variations in various profitability components, and understanding the CSR activities initiated by Dabur India Ltd and how the CSR activities will help the organisation to increase the sales which will help to increase the profit.

Methodology: This qualitative research paper is based on secondary data which is obtained from the research papers published in various journals, newspapers, articles, annual reports of the company, and articles related to this study.

Findings: Nowadays people have changed their mindset while purchasing the products especially while purchasing intake items. They prefer ayurvedic products instead of chemical products. Even the herbal product manufacturing companies are performing well in terms of revenue. They are becoming famous through their good performance in terms of increased sales, and satisfied customers. It is also found that the consumers are flexible. They are not sticking to one brand. Fewer side effects, the permanent curing nature of the herbal products made the consumers buy more and more herbal products.

Originality: The significance of the profitability ratio, changes in profitability components, profitability ratio analysis, CSR initiatives, and Dabur Company's ABCD listing are all covered here.

Value: This study will help to evaluate the performance of the herbal products of Dabur India Ltd in terms of revenue, EPS, Return on Equity, Return on Total Assets, etc. This study will also provide information about how much the company is concerned about the public through their CSR activities.

Paper Type: Case Study of the Company.