A Fundamental Analysis of Securities
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INDIABULLS SECURITIES LTD
FUNDAMENTAL ANALYSIS OF SECURITIES
Presented By:Niharika SinghMBA/4561/08
BIT Noida
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Objective of the study
a) Comparatively analyze the different industry performance and selecting the appropriate security.b) Identify the returns of the securities in considering the risk, growth, and other related variables.c) Understand the factor influencing the security prices in different industries.d) Analyzing the environmental factors affects the security prices.e) Assess the future potential of the companies in the industry.f) And aid to investor in assessing the worth of the securities.
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SAMPLING DESIGN
Sample Design
s
Research Methdology
Descriptive ResearchSecondary Data
Industry Company
Steel Industry Tata steel,SAIL,Jindal steel,JSW and Bhushan steel
IT Industry Wipro,Infosys,Tech Mahindra,3i Infotech,TCS
Automobile Industry Maruti Suzuki,Hero Honda,Ashok Leyland,M&M,Hindustan motors
Power Industry Reliance power,L&T,Jaiprakash Hydro,NTPC,Tata power
Pharma Industry Ranbaxy,Cipla,Dr. Reddy,Sunpharmaceutical,Dabur
Real-estate DLF, Shobha developers,Unitech,Lanco,Brigade ltd
Cement Industry ACC Ltd,India cement,J.K cement,Ambuja cement,Ultratech Ltd
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FUNDAMENTAL ANALYSIS
To analyze the overall economy and securities markets.
To analyze the industry
with in which a particular company operates.
Analysis of the company should be considered.
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TYPES OF FUNDAMENTAL ANALYSIS
Economic analysisIndustry analysisCompany analysis
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ANALYSIS AND FINDINGS
COMPANY ANALYSIS:
Mean of ProfitVariance of ProfitRisk co-efficient(beta) RATIOS Per Share Ratio Profitability Ratio Leverage Ratio Liquidity RatioBalance Sheet Analysis
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Steel Industry Rs. In crore
Company Tata steel Ltd SAILJindal Steel
LtdBhushan Steel Ltd JSW Steel Ltd
Mean of profit 499 123 5410.6 607 123.18
Variance of profit 6 6.07 7.4 7.1 5.4
Risk co-efficient(beta) 1.4 1.27 1.25 1.6 1.2
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RATIOS
Per Share Ratio
EPS 64.14 14.81 90.47 19.98 24.81
Dividend Per Share 16.00 3.70 4 2.5 14
Operating Profit Per Share 112.85 27.28 149.12 196.68 179.43
Book value Per Share 296.65 55.69 243.71 382.68 394.99
Profitability Ratio
Operating Margin 41.94 28.19 42.76 19.98 29.46
Return on long term funds 17.16 44.47 26.6 10.26 19.22
Leverage Ratio
Total debt/equity 1.07 0.12 0.9 2.84 1.01
Fixed asset turnover ratio 1.2 1.31 0.9 1.44 0.81
Liquidity Ratio
Current Ratio 3.92 1.73 1.56 1.66 0.58
Inventory Turnover ratio 10.84 8.62 7.01 4.4 9.26
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Balance Sheet
Net Profit 4,687.03 6,119.17 1,536.48 412.79 458.50
Profit before tax(PBT) 7,066.36 11,468.73 1,502.51 538.93 2,484.12
Profit After tax(PAT) 4,447.90 7,310.27 1,392.87 417.69 1,639.05
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Steel Industry
Sales growth of five Steel Company
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
2004 2005 2006 2007 2008
Tata steelJSWBhushan Ltd.JindalSail
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Automobiles Industry
Sales growth of five Automobile Comapnies
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IT INDUSTRY
Sales growth of five IT comapnies
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
2008 2007 2006 2005 2004
Tech mahindraWiproTCSInfosys3i Infotech
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Power Industry
Sales growth of five power comapnies
0.005,000.00
10,000.0015,000.0020,000.0025,000.0030,000.0035,000.0040,000.0045,000.00
2008 2007 2006 2005 2004
NTPCL & TJaiprakashReliance powerHydro power
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Pharmaceutical Industry
Sales growth of five Pharma companies
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Real-estate Industry
Sales growth of five Real-estate companies
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
2008 2007 2006 2005 2005
DLFShobha DevelopersLanco LtdunitechBrigade
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Cement Industry
Sales growth of five Pharma comapnies
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CONCLUSION
When come to the economic factors the global economies are getting interrelated, the Indian market will no longer be limited to domestic economic situation. As far as the Indian economy is concerned, the GDP is the primary factor.Positive correlation with the Sensex, which directly affects the overall market and followed by other factors.There are many industries and each industries consists of several companies. These companies having different scenario based on current situation of economy.Therefore before investing any industry investor must analyze the industry and company.Here we have compared different seven industries on the basis of different financial terms.
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SUGGESTIONS
secrutiny of economy,industries and companies are must.
The investor also should consider the budget decision and present years forecast of different sectors. Comparisons is also necessary because of companies perform well when potential opportunity exists for industry.
Even though the industry may perform well, the companies in the that particular industry may suffer form lack of ability or any other factor, one should scrutinize the performance of the company, in considering importantly, sales growth, leverages, betas, P/E ratio and market to book ratios. .
fundamental analysis even today holds good. It demands, may insist on information about the company. It requires subjecting a company.s performance and its financial statements to in-depth scrutiny. It also calls for the company and industry in which the company operates.
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