stock market tips, intraday stock tips, stock market advisory
ANALYSIS OF STOCK MARKET l Finance.doc
-
Upload
arun-chauhan -
Category
Documents
-
view
220 -
download
0
Transcript of ANALYSIS OF STOCK MARKET l Finance.doc
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
1/72
Analysis of Stock Market
Summer InternshipSummer Internship
PROJECTPROJECT
ONON
Analysis of stock market
Submitted To- Mr. Nitish Dipankar
Prepared By-
Namit Agrawal
MBA (GEN), Sec E
A0101907262
Amity Business School
1Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
2/72
Analysis of Stock Market
Acknowledgements
I pay my sincere regards to Mr. Nitish Dipankar, Area Sales Manager, Retail
Liabilities, Wealth Management, Consumer Banking, Standard Chartered, for
guiding me throughout the project with his valuable insights, and giving me the
opportunity to work on this wonderful project, which helped me to analyze and
interpret the performance of various companies in terms of fundamental attributes
and market sentiments, hone my thinking ability and gain a deeper insight into
their business model. I acknowledge, with due respect, the continuous guidance
he provided without which, the completion of this project work would not have
been possible.
I am also grateful to the HOD, Finance, Amity Business School, Amity
University, Noida and my faculty guide Prof. S. K. Malhotra, who not only
guided me throughout the project but also provided the much needed inspiration
and motivation.
Namit Agrawal
A0101907262
MBA (GEN.), ABSAU
2Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
3/72
Analysis of Stock Market
Abstract
The aim of this project work is to analyze and present the findings about financial
performance of some Indian companies both on their internal business front and the stock
markets. The objective is to judge their performance and chart out future projections and
potentials which in turn would help to recommend the investors whether to sell, hold or
accumulate the stocks of these companies.
The project included the collection of daily turnover and trading of the companies on the
largest two bourses of India NSE and BSE. The information from these was used to do
the Technical Analysis i.e.to calculate and judge the market sentiment about the
companies.
The Balance sheets, P&l accounts and Income statements of the companies were used to
do the Fundamental Analysis to find out the internal story and performance of the
company.
Corporate News and other information helped in judging the future growth prospects of
the companies and their prospective effects on the overall market sentiment.
Overall the project was an excellent opportunity to look into the unseen and to gain a lot
of information and knowledge about valuations, business trends, performance and to get a
glimpse of what is to come in the future. Based on the current scenario, an attempt has
been made using modern techniques to forecast the future earnings and value creation of
the researched companies.
3Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
4/72
Analysis of Stock Market
Table of Contents
S.no. Topic Page No.
1. Introduction 5
2. Economic Growth & GDP 6
3. Per capita income and consumption 7
4. Industry and Infrastructure 8
5. IIP 10
6. Population and Growing Middle Class 12
7. Research Model - CANSLIM 15
8. Research Methodology 16
9. Companies and respective sector 17
10. Company Analysis - Factors 18
11. Bharti Airtel 19
12. DLF 25
13. HUL 30
14. ICICI Bank 37
15. Infosys Technologies 42
16. Larsen & Toubro 47
17. Reliance Infrastructure 52
18. RIL 57
19. Conclusions 63
20. Implications for future Research 65
21. References 66
4Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
5/72
Analysis of Stock Market
Introduction
India is experiencing a good economic growth. This has led to the increase in the number
of people earning handsome income. These people are attracted to invest in the stocks
and securities of various companies in the share market as they see appreciation of their
investments in them. But the stocks should not be bought on mere speculation as they
could seriously erode the wealth if not selected properly and if the timing is not
appropriate.
The objective of the project is to analyze the fundamentals and the future potential of the
various companies and provide useful information and insights to the investors as to
whether they should invest in a particular stock and for what frame of time. Various
models and practices which are time tested and used extensively by professional analysts
and investment companies have been used for the above expressed purpose.
5Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
6/72
Analysis of Stock Market
MACROECONOMIC FACTORS
Economic growth and GDP:
The countrys GDP at current market prices is projected at Rs. 46, 93,602 crore in 2007-
08 by the Central Statistical Organization (CSO). Thus, in the current fiscal year, the size
of the Indian economy at market exchange rate will cross US$ 1 trillion. At the nominal
exchange rate (average of April-December 2007) GDP is projected to be US$ 1.16
trillion in 2007-08. Per capita income at nominal exchange rate is estimated at US$
1,021. According to the World Bank system of classification of countries as low income,
middle income and high income, India is still in the category of low income countries.
The (per capita) GDP at purchasing power parity is conceptually a better indicator of the
relative size of the economy than the (per capita)GDP at market exchange rates. There
are, however, practical difficulties in deriving GDP at PPP, and we now have two
different estimates of the PPP conversion factor for 2005. Indias GDP at PPP is
estimated at US$ 5.16 trillion or US$ 3.19 trillion depending on whether the old or new
conversion factor is used. In the former case, India is the third largest economy in the
world after the United States and China, while in the latter it is the fifth largest (behind
Japan and Germany).
GDP at factor cost at constant 1999-2000 prices is projected by the CSO to grow at 8.5
per cent in 2008-09. This represents a deceleration from the unexpectedly high growth of
9.4 per cent, 9.6 per cent and 8.7 per cent respectively, in the previous three years. With
the economy modernizing, globalizing and growing rapidly, some degree of cyclical
fluctuation is to be expected.
6Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
7/72
Analysis of Stock Market
Per capita income and consumption:
Economic growth, and in particular the growth in per capita income, is a broad
quantitative indicator of the progress made in improving public welfare. Per capita
consumptionis another quantitative indicator that is useful for judging welfare
improvement.The pace of economic improvement has moved up considerably during the
last five years(including 2007-08). Since 2003, there has been a sharp acceleration in the
growth of per capita income, almost doubling to an average of 7.2 per cent per annum
(2003-04 to 2007-08).This means that average income would now double in a decade,
well within one generation, instead of after a generation (two decades). The growth rate
of per capita income in 2007-08 is projected to be 7.2 per cent, the same as the average of
the five years to the current year.
Per capita private final consumption expenditure has increased in line with per capita
income. The growth rate has almost doubled to 5.1 per cent per year from 2003-04 to
2007-08, with the current years growth expected to be 5.3 per cent, marginally higher
than the five year average. The average growth of consumption is slower than the average
growth of income, primarily because of rising saving rates, though rising tax collection
rates can also widen the gap (during some periods). Year to year changes in consumption
also suggest that the rise in consumption is a more gradual and steady process, as any
sharp changes in income tend to get adjusted in the saving rate.
Per capita income and consumption (in 1999-2000 prices):
Income is taken as GDP at market prices.
Consumption is PFCE.
Per capita is obtained by dividing these by population.
7Amity Business School
Year Income Consumption
2007-08 Rs. Growth (%) Rs. Growth (%)
29,78
6
7.2 17,145 5.3
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
8/72
Analysis of Stock Market
Industry and infrastructure:
The industrial sector witnessed a slowdown in 2007-08. The growth of 9 per cent whenviewed against the back drop of the robust growth witnessed in the preceding four years,
suggests that there is a certain degree of moderation in the momentum of the industrial
sector. The consumer durable goods sector in particular has shown a distinct slowdown.
This is linked to the hardening of interest rates and therefore to the conditions prevailing
in the domestic credit sector. In contrast, the capital goods industry has sustained strong
growth performance during 2007-08.
At the product group level, the moderation in growth has been selective. Industries like
chemicals, food products, leather, jute textiles, wood products and miscellaneous
manufacturing products witnessed acceleration in growth, while basic metals, machinery
and equipments, rubber, plastic and petroleum products and beverages and tobacco
recorded lower but strong growth during 2007-08. Other industries including textiles
(except jute textiles), automotives, paper, non-metallic mineral products and metal
products slowed down visibly during the period. Within automobiles, while passenger
cars, scooters and mopeds witnessed buoyant growth, the production of motor cycles and
three wheelers slackened.
The picture with regard to forward-looking variables such as investment, particularly in
the corporate sector, has been encouraging. Corporate profitability during 2007-08 on the
whole increased in the manufacturing sector except for certain groups like textiles, food
products and beverages. Higher profits backed by sound balance sheets were also
reflected in an increase in the planned corporate investment. The outstanding gross bank
credit to the industrial sector which had increased slowly, picked up in later months to
touch 8.3 per cent during 2007-08. These developments are also reflected in the robust
growth of the capital goods sector. The continued buoyancy in industrial and corporate
investment thus reflects the confidence in the growth prospects of the industrial sector.
8Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
9/72
Analysis of Stock Market
Accompanying the recent moderation in industrial growth, the growth performance of
some segments of the infrastructure sector during 2007-08 such as power generation and
movement of railway freight, as also the production of universal intermediates like steel,
cement and petroleum, have shown a subdued performance. In the power sector, though
the planned capacity addition is unlikely to be achieved, the growth in capacity seen in
the current year is distinctly higher than in the previous years. The movement of cargo
handled by major ports and air cargo (exports and imports) has showed improved
performance as compared to the corresponding period last year. With increased rural
penetration of mobile telephony, the telecom sector has continued its strong growth.
The recent moderation in the growth of the industrial sector has raised concerns in some
quarters about the sustainability of the high growth of the sector. To deal with the
situation emerging from the slowdown of some export oriented sectors of relatively low
import intensity including textiles, handicrafts, leather, etc, the Government took certain
measures to tide over the situation in the short run. But it needs to be emphasized that,
over the medium term, there is little choice but to improve productivity, even if there are
issues pertaining to the exchange rate of currencies of competing countries.
9Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
10/72
Analysis of Stock Market
Index of Industrial Production:
Index of Six Infrastructure Industries (Base: 1993-94=100):
The Index of Six core-infrastructure industries having a combined weight of 26.7 per
cent in the Index of Industrial Production (IIP) with base 1993-94 registered a growth of
5.6% during April-March 2007-08.
Crude Oil production (weight of 4.17% in the IIP) registered a growth of 0.4%.
Petroleum refinery production (weight of 2.00% in the IIP) registered a growth of 6.5%.
Coal production (weight of 3.2% in the IIP) registered a growth of 6.0%.
Electricity generation (weight of 10.17% in the IIP) registered a growth of 6.3%.
Cement production (weight of 1.99% in the IIP) registered a growth of 8.1%.
Finished (carbon) Steel production (weight of 5.13% in the IIP) registered a growth of
5.1%.
The slowdown in the growth of Index for Industrial Production (IIP) has resurrected
concerns about lower growth in India Incs earnings, given that the manufacturing sectors
account for a major portion of the Indian stock market capitalization (over 60 per cent ofS&P CNX 500).
The growth for the full year 2007-08 has witnessed moderation.
While the slowdown in growth has been widely perceived to be a result of a higher base,
other factors suggest that there is more to the slowdown than just a base effect.
A recent survey by CII-ASCON for instance, suggests an increase in the number of
sectors that have witnessed negative growth in 2007-08 as compared with 2006-07. The
survey has reported that out of 104 sectors under coverage, sectors with a negative
growth have increased by 16.3 per cent in the recent year, compared with an 11.2 per cent
increase in FY07.
10Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
11/72
Analysis of Stock Market
Both the IIP numbers and the survey clearly indicate slowing output (and thus off take) in
the consumer durables sector. Steep increases in lending rates over the past couple of
years appear to have moderated the demand for two and four-wheelers as well as
electronic goods.
Current prime lending rates according to the RBI data stand at 12.75-13.25 per cent,
which is a steep 200 basis points increase over rates that prevailed in March 2006. The
IIP numbers reflect negative growth in the consumer durables segment for 2007-08. The
survey also indicates that majority of the sectors that witnessed negative growth fall
under the consumer durables industry. This is not surprising as two-wheeler and car-
makers have reported lower growth in off take during the fiscal.
While the basic, intermediate and capital goods sectors have also witnessed a tapering
down in growth, they appear to have fared better than consumer goods. The survey, for
instance, suggests that close to 50 per cent of the sectors that have witnessed production
growth of over 20 per cent are from the capital goods industry. Amidst pressure from
higher raw material costs as a result of spiralling inflation, increased fuel costs and higher
cost of borrowing, the core sectors appear to have put up a better show. This suggests that
slowing off take has not yet trickled down to the capital goods and other feeder
industries; but the next few months may have to be watched on that.
The silver lining for India Inc, from this slowdown, may yet lie in the export-oriented
sectors, especially IT services, as a rapidly depreciating rupee may bolster realizations for
these sectors.
11Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
12/72
Analysis of Stock Market
Effect of Population and Growing Middle Class:
Inspite of the IIP not showing very impressive figures during 2007-08, there is still
confidence in the economy. This is primarily due to the huge burgeoning middle class
population of the country and the increasing level of the earnings of the people. In fact,
the domestic consumption of the country is steadily increasing at a rapid pace. The
country has been able to maintain the GDP of 9% upwards and 8.7% for the last 4 fiscals
and the previous fiscal respectively. This shows that the economy is indeed in a balanced
position and poised to maintain the growth.
Though there have been some news from different quarters about lowering of the
business due to the slowing down of the world economy especially U.S. economy and the
Rupee appreciation, the fact is that the economy will continue to be led by domestic
consumption. There will be some impact of the U.S. slowdown but it will not be large
enough to offset out growth path. As for the concerns regarding Rupee appreciation, the
currency is loosening its strength against the dollar and is now trading at a comfortable
level and thus will not affect the exporters negatively.
It is important to here that the major part of the population of the country i.e.58.5 croreapprox. is in the 15-59 years age bracket and having the earning potential. There are 54
crore people below the 25years of age and it is an important fact because this group will
earn, spend and will eventually drive the growth of the country in the times to come. The
following figures illustrate the facts.
12Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
13/72
Analysis of Stock Market
ESTIMATED POPULATION OF INDIA 2008
In thousands (000')
S No. India and State / Union territory*
Persons Males Females
INDIA (TOTAL) 1,147,677 592,245 555,432
1 Jammu & Kashmir 12,366 6,423 5,943
2 Himachal Pradesh 6,550 3,328 3,222
3 Punjab 26,591 14,162 12,429
4 Chandigarh* 1,063 598 465
5 Haryana 23,772 12,763 11,009
6 Delhi* 17,076 9,357 7,719
7 Rajasthan 64,641 33,589 31,052
8 Uttar Pradesh 190,891 99,894 90,997
9 Uttaranchal 9,497 4,836 4,661
10 Bihar 93,823 48,677 45,14611 Jharkhand 30,010 15,436 14,574
12 Sikkim 594 317 277
13 Arunachal Pradesh 1,200 632 568
14 Nagaland 2,187 1,146 1,041
15 Manipur 2,627 1,329 1,298
16 Mizoram 980 506 474
17 Tripura 3,510 1,801 1,709
18 Meghalaya 2,536 1,285 1,251
19 Assam 29,929 15,421 14,508
20 West Bengal 87,869 45,278 42,591
21 Orissa 39,899 20,214 19,865
22 Madhya Pradesh 69,279 36,057 33,222
23 Chhattisgarh 23,646 11,935 11,711
24 Gujarat 56,408 29,358 27,050
25 Dadra & Nagar Haveli* 262 150 112
26 Maharashtra 106,894 55,492 51,402
27 Andhra Pradesh 82,180 41,449 40,731
28 Karnataka 57,399 29,145 28,254
29 Goa 1,628 825 803
30 Daman & Diu* 188 116 72
31 Lakshadweep* 69 35 3432 Kerala 34,232 16,638 17,594
33 Tamil Nadu 66,396 33,298 33,098
34 Pondicherry* 1,074 537 537
35 Andaman & Nicobar Islands* 411 218 193
13Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
14/72
Analysis of Stock Market
DEMOGRAPHIC PROFILE:
14Amity Business School
Age Groups Persons Males Females
6 years and below 163,819,614 84,999,203 78,820,411
Proportion to total population (%) 15.9 16.0 15.9
7 to 14 years 199,791,198 104,488,119 95,303,079
Proportion to total population (%) 19.4 19.6 19.2
15 to 59 years 585,638,723 303,400,561 282,238,162
Proportion to total population (%) 56.9 57.0 56.9
60 years and above 76,622,321 37,768,327 38,853,994
Proportion to total population (%) 7.5 7.1 7.8Age Not Stated 2,738,472 1,500,562 1,237,910
Proportion to total population (%) 0.3 0.3 0.3
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
15/72
Analysis of Stock Market
Research Model - CANSLIM
CANSLIMmodel is a method for selecting and analyzing the performance of acompany over various parameters. This model has been used for the purpose of research.
The full form of the model is as follows:
C Current quarterly earnings.
A Annual earning increases over the last years.
N New products, management, new highs and lows.
S Small supply and large demand i.e. future profitability.
L Leaders and laggard stocks. (using relative index as a guide).
I Institutional support and sponsorship.
M Determining market direction by reviewing market averages daily.
15Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
16/72
Analysis of Stock Market
Research Methodology
The research has been done by selecting the companies which are the representative of a
particular sector on the basis of overall market capitalization, stocks having the highest
liquidity and turnover both on the NSE and BSE. A caution was thus taken and by
thorough approach the best companies were selected so as to portray a genuine picture of
the sector. With the help of SPSS Package and using the quantitative techniques, the
statistical analysis has been done.
The following analysis has been done for all the 8 companies:
1. Fundamental analysis.
2. Ratio analysis.
3. Future growth and earnings analysis.
4. Statistical analysis.
5. Technical analysis.
16Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
17/72
Analysis of Stock Market
Companies and Respective Sector
The 8 companies from the most important sectors which form the foundation
of the economy have been studied and analyzed. They are:
1. Bharti Airtel Telecommunications.
2. DLF- Realty.
3. HUL FMCG.
4. ICICI Bank Banking.5. Infosys Technologies IT.
6. Larsen &Toubro Capital Goods & Engineering.
7. Reliance Infrastructure Power and Energy.
8. RIL Oil and Gas.
17Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
18/72
Analysis of Stock Market
Company analysis
The analysis of each company has been done in the following heads and
sequence:
1. Score card.
2. Stock price movements.
3. Company profile.
4. Business.5. Shareholding pattern.
6. Financials.
7. Future growth potential.
8. Mutual funds invested in the company.
9. Valuations and risks.
10. Rating.
18Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
19/72
Analysis of Stock Market
Bharti Airtel Limited
SECTOR: TELECOMMUNICATIONS
SCORE CARD:
All the values as on NSE on 27/06/08
19Amity Business School
Standard Deviation 37.5
Institutional Holding (%) 29.56
Dividend Yield 0.87
P/E 22.83
Market Capitalization(Rs Cr) 145645
CMP(Rs.) 747.95
52 week - high 1184.20
52 week - low 701.00
Face value (Rs.) 10.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
20/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE) :
X - axis: No. of days
Y - axis: Value in Rs.
20Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
21/72
Analysis of Stock Market
BHARTI AIRTEL
COMPANY PROFILE:
Airtel comes from Bharti Airtel Limited, Indias largest integrated and the first private
telecom services provider with a footprint in all the 23 telecom circles. It was established
as a Public Limited Company on July 07, 1995.
Bharti Airtel since its inception has been at the forefront of technology and has steered
the course of the telecom sector in the country with its world class products and services.
It is having a Customer Base comprising of 64,370,434 GSM mobile and 2,319,509
telemedia customers (Status as at month ended April 30, 2008). The businesses at Bharti
Airtel have been structured into three individual strategic business units (SBUs) - Mobile
Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides
mobile & fixed wireless services using GSM technology across 23 telecom circles while
the Airtel Telemedia Services business offers broadband & telephone services in 94
cities. The Enterprise services provide end-to-end telecom solutions to corporate
customers and national & international long distance services to carriers. All these
services are provided under the Airtel brand. The group focuses on delivering
telecommunications services as an integrated offering including mobile, broadband &
telephone, national and international long distance and data connectivity services to
corporate, small and medium scale enterprises.
BUSINESS:
The company is having a Customer Base comprising of 64,370,434 GSM mobile and
2,319,509 telemedia customers (Status as at month ended April 30, 2008).The mobile
business provides mobile & fixed wireless services using GSM technology across 23
21Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
22/72
Analysis of Stock Market
telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 94 cities. The Company compliments its mobile and broadband &
telephone services with national and international long distance services. It has over
35,016 route kilometers of optic fibre on its national long distance network. For
international connectivity to east, it has a submarine cable landing station at. For
international connectivity to the west, the Company is a member of the South East Asia-
Middle East-Western Europe 4 (SEA-ME-WE-4) consortium along with 15 other
global telecom operators.
SHAREHOLDING PATTERN:
Face value 10.00
No. Of Shares % Holding
Indian Promoters 859986028 45.31
Foreign Promoters 390363150 20.57
Sub total 1250349178 65.88
Institutional investors
Banks Fin. Inst. and Insurance 46114765 2.43
FII's 474252686 24.99
Sub total 560980300 29.56
Other investorsPrivate Corporate Bodies 38391925 2.02
NRI's/OCB's/Foreign Others 22428844 1.18
Others 2521706 0.13
Sub total 63342435 3.34
General public 23235493 1.22
Grand total 1897907406 100.00
FINANCIALS:
22Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
23/72
Analysis of Stock Market
E = Expected, *for (07-08 and 06-07)
FUTURE GROWTH POTENTIAL:
The growing population of the country along with the betterment in earnings of the
people has resulted in a boom for the telecommunications industry as there is widespread
need and application of these services. The company has been growing at an unabated
pace for the last three years and hopes to carry on the momentum. The company was
recently in talks with the MTN Group of South Africa for a possible merger but the talksfell through as there was the offer of reverse merger and acquisition by MTN which was
not acceptable to the company. The company is however open to alliances and has a
strategic alliance with SingTel. The investment made by SingTel is one of the largest
investments made in the world outside Singapore, in the company. The companys
mobile network equipment partners include Ericsson and Nokia. In the case of the
broadband and telephone services and enterprise services (carriers), equipment suppliers
include Siemens, Nortel, Corning, among others. The Company also has an information
technology alliance with IBM for its group-wide information technology requirements
and with Nortel for call center technology requirements. The call center operations for the
mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech &
Mphasis.
23Amity Business School
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 34,699.74 25,703.51 44.47 17,794.43 11,228.68Operating profit 12,838.78 10,501.03 47.55 7,116.95 3,881.83
Net profit 7,980.94 6,244.20 54.82 4,033.22 2,012.07
OPM 37.00 40.85 85Bps 40.00 34.57
NPM 23.00 24.07 152Bps 22.55 17.82
EPS(Rs.) 42.05 32.90 54.68 21.27 10.62
ROE - NA - 35.35 27.47
http://www.singtel.com/http://www.singtel.com/ -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
24/72
Analysis of Stock Market
MUTUAL FUNDS INVESTED IN THE COMPANY:
Scheme % of scheme asset size
JM Telecom Sector Fund - Growth
31.99
JM Telecom Sector Fund - Dividend31.99
Birla Sun Life New Millenium Fund -Growth
9.01
Birla Sun Life New Millenium Fund -Dividend
9.01
UTI Contra Fund - Growth7.02
VALUATIONS AND RISKS:
The stock is currently trading at a P/E ratio of 22.83.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.42.05.
Thus at the current Market Price of Rs.747.95, the stock is trading at a one year forward
P/E of 17.78.
RATING: HOLD
24Amity Business School
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052145&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052453&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050089&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052145&schemeplancode=2066 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
25/72
Analysis of Stock Market
DLF Limited
SECTOR: REALTY
SCORE CARD:
All the values as on NSE on 27/06/08
25Amity Business School
Standard Deviation 78.70
Institutional Holding (%) 8.20
Dividend Yield 0.94
P/E 9.80
Market Capitalization(Rs Cr) 76692
CMP(Rs.) 425.10
52 week - high 1225.00
52 week - low 422.40
Face Value (Rs.) 2.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
26/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):
X - axis: No. of days
Y - axis: Value in Rs.
26Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
27/72
Analysis of Stock Market
COMPANY PROFILE:
The DLF group is a leading real estate developer in India. With over six decades of
excellence, DLF is a name synonymous with global standards, new generation
workspaces and lifestyles. The Group has a distinction of developing commercial projects
and technology parks that are at par with the best in the world. DLF has pioneered some
of the best-known urban housing and retail destinations in Delhi including South
Extension, Greater Kailash, Rajouri Garden, Model Town, Hauz Khas and Kailash
Colony.The Group is also establishing partnerships with reputed leaders in the field of
education, healthcare, and hospitality services. DLF has also earmarked the infrastructure
sector and foresees the infrastructure vertical to create new source of revenues and
growth to the group. The key focus areas of vertical are construction of expressways,
highways, airports and other key infrastructure projects.
BUSINESS:
The group has over 224 million sq. ft. of existing development and 748 million sq. ft. of
planned projects. The company has also entered into several strategic alliances with
global industry leaders. The core business traditionally has been into three prime
divisions: Homes, Offices and Shopping Malls. To these DLF has added three more
divisions: Hotels, Infrastructure and SEZs. 220 million square feet of area has been
developed as colonies and townships in the past, including 17 million square feet ofresidential properties.32 million square feet is developed/under development. Several
world-class projects are in the pipe-line. Currently 26 million sq. ft. of rentable
commercial space is possessed by the company. IT Parks are being developed at
Gurgaon, Noida, Chandigarh, Kolkata, Bangalore, Hyderabad, Chennai, Pune,
Bhubaneshwar and Nagpur.
27Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
28/72
Analysis of Stock Market
SHAREHOLDING PATTERN:
FINANCIALS:
E = Expected, *for (07-08 and 06-07)
28Amity Business School
Face Value 2.00
No. of Shares % Holding
Indian Promoters 1503043120 88.16
Sub total 1503043120 88.16
Institutional Investors
Banks Fin. Inst. and Insurance 3744704 0.22
FII's 128841616 7.56
Sub total 139862476 8.20
Other investors
Private Corporate Bodies 9882408 0.58
NRI's/OCB's/Foreign Others 1423988 0.08
Others 398623 0.02
Sub total 11578219 0.68
General public 50222065 2.95
Grand total 1704705880 99.99
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 11,065.76 5,532.88 388.13 1,133.48 291.65
Operating profit 4,426.30 3,081.06 346.53 690.00 46.35
Net profit 3,319.73 2,590.28 536.57 406.91 26.70
OPM 40.00 55.69 -518Bps 60.87 15.89
NPM 30.00 42.75 1428Bps 28.47 -
EPS(Rs.) 19.47 15.19 471.05 2.66 15.21
ROE - NA - 62.15 35.26
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
29/72
Analysis of Stock Market
FUTURE GROWTH POTENTIAL:
World-class construction and design is a part of the companys policy and it has made the
following steps in this direction.
Extensive arrangements with Indias top designers, for example, Hafeez
Contractor, Mohit Gujral, WSP. Finest network of experienced contractors and
suppliers like LOR, L&T, Shapoorji Pallonji, BL Kashyap.
9 million square feet of saleable area under construction
Plans to develop around 70 million square feet of residential projects across
country in next 3 years.
Upcoming Premium housing - in major metros :
Chanakyapuri project in Delhi
Public Private Partnership (PPP) to develop residential project along with Delhi
Development Authority (DDA)
Township development in Gurgaon, Amritsar, Goa, Mumbai, Pune, Chennai
375 million square feet of residential space under planning.
DLF Golf and Country Club, an exclusive 18-hole par 72 Arnold PalmerSignature Golf Course landscaped by internationally acclaimed architect Belt
Collins. It is India's first night Golf Course, ranked as the best in the Country, and
amongst the leading Golf Courses in Asia.
29Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
30/72
Analysis of Stock Market
MUTUAL FUNDS INVESTED IN THE COMPANY:
Scheme % of scheme asset size
Birla Fixed Term Plan - Series AG - Growth37.93
Birla Fixed Term Plan - Series AG - IP -Growth
37.93
Birla Fixed Term Plan - Series AG -Dividend
37.93
Birla Fixed Term Plan - Series AG - IP -Dividend
37.93
Birla Fixed Term Plan - Series AD - Growth19.04
VALUATIONS AND RISKS:
The stock is currently trading at a P/E ratio of 9.80.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.19.47
Thus at the current Market Price of Rs.425.10, the stock is trading at a one year forward
P/E of 21.83.
RATING: SELL.
30Amity Business School
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053548&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053663&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053548&schemeplancode=2066 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
31/72
Analysis of Stock Market
Hindustan Unilever Limited
SECTOR: FAST MOVING CONSUMER GOODS
SCORE CARD:
All the values as on NSE on 27/06/08
31Amity Business School
Standard Deviation 10.26
Institutional Holding (%) 30.35
Dividend Yield 4.32
P/E 25.84
Market Capitalization(Rs Cr) 46214
CMP(Rs.) 208.55
52 week - high 255.85
52 week - low 169.00
Face Value (Rs.) 1.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
32/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):
X - axis: No. of days
Y - axis: Value in Rs.
32Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
33/72
Analysis of Stock Market
COMPANY PROFILE:
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, with leadership in Home & Personal Care Products and Foods & Beverages.
HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out
of three Indians. With 35 Power Brands, HUL meets everyday needs for nutrition,
hygiene, and personal care. HUL is also one of the country's largest exporters; it has been
recognized as a Golden Super Star Trading House by the Government of India. The
Parent company, Unilever, holds 52.10% of the equity. It is a Fortune 500 transnational
which sells Foods and Home and Personal Care brands in about 100 countries worldwide.
HUL has traditionally been a company, which incorporates latest technology in all its
operations.
BUSINESS:
HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,
Kwality Wall's are household names across the country and span many categories -
soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary
products. They are manufactured over 40 factories across India. The operations involve
over 2,000 suppliers and associates. HUL's distribution network comprises about 4,000
redistribution stockists, covering 6.3 million retail outlets reaching the entire urban
population, and about 250 million rural consumers.
Major Brands of HUL:
Personal wash: Lux, Breeze, Lifebuoy, Dove, Liril, Pears, Hamam, Rexona.
33Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
34/72
Analysis of Stock Market
Laundry: Surf Excel, Rin, Wheel
Skin Care: Fair &Lovely, Ponds, Vaseline
Hair Care: Sunsilk Naturals, Clinic
Oral Care: Pepsodent, Closeup
Deodorants: Axe, Rexona
Colour Cosmetics: Lakme
Ayurvedic: Ayush
Tea: Brooke Bond, Lipton
Coffee: Brooke Bond Bru
Foods: Kissan, Annapurna, Knorr
Ice Cream: Kwality Walls
SHAREHOLDING PATTERN:
34Amity Business School
Face value 1.00
No. of Shares % Holding
Promoters holding
Foreign Promoters 1134849460 52.11
Sub total 1134849460 52.11
Institutional investors
Banks Fin. Inst. and Insurance 267563405 12.28
FII's 330009896 15.15
Sub total 661001438 30.35
Other investors
Private Corporate Bodies 19350708 0.89
NRI's/OCB's/Foreign Others 6359414 0.29
Directors/Employees 198946 0.01
Govt. 20 -
Others 1172543 0.05
Sub total 27077411 1.24
General public 355051027 16.30Grand total 2177979336 100.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
35/72
Analysis of Stock Market
FINANCIALS:
35Amity Business School
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 15,775.41 13,717.75 13.34 12,103.39 11,060.55Operating profit 2,050.80 1,885.70 14.42 1,648.06 1,443.33
Net profit 2,129.68 1,923.79 3.68 1,855.37 1,364.06
OPM 13.00 13.75 13Bps 13.62 13.05
NPM 13.50 13.57 -132Bps 14.89 12.00
EPS(Rs.) 9.78 8.83 4.99 8.41 6.20
ROE - NA - 122.97 68.14
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
36/72
Analysis of Stock Market
E = Expected, *for (07-08 and 06-07)
FUTURE GROWTH POTENTIAL:
Home to over 700 million people, rural India comprises not only over 70% of India's
billion-strong population, but also over 12% of the world's population. The rural
population already accounts for substantial consumption of Fast Moving Consumer
Goods and also consumer durables. About 50% of the sales of soaps & detergents are
generated in rural India. Similarly, almost half the demand for black & white television
sets, pressure cookers, table fans, sewing machines also comes from there.
But the potential is even larger, both in terms of consumption and penetration. The fact
that 70% of the population accounts for only 50% of even relatively well-penetrated
categories, like soaps & detergents, indicates the enormous scope of consumption-led
growth in these categories. Therefore such categories will derive growth out of increased
usage. In categories, which are relatively less penetrated, like personal products, rural
Hindustan Unilever's distribution network is recognized as one of its key strengths. Its
focus is not only to enable easy access to our brands, but also to touch consumers with a
three-way convergence - of product availability, brand communication, and higher levels
of brand experience. HUL's products, manufactured across the country, are distributed
through a network of about 7,000 redistribution stockists covering about one million
retail outlets. The distribution network directly covers the entire urban population.
MUTUAL FUNDS INVESTED IN THE COMPANY:
Scheme % of scheme asset size
Franklin FMCG Fund - Growth8.18
Franklin FMCG Fund - Dividend8.18
BOB Growth Fund - Growth8.12
BOB Growth Fund - Dividend8.12
36Amity Business School
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050288&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
37/72
Analysis of Stock Market
ING Dividend Yield Fund - Growth5.35
VALUATIONS AND RISKS:
The stock is currently trading at a P/E ratio of 25.84.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.9.78.
Thus at the current Market Price of Rs.208.55, the stock is trading at a one year forward
P/E of 21.32.
RATING: HOLD
37Amity Business School
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052001&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052001&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052001&schemeplancode=2066 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
38/72
Analysis of Stock Market
ICICI Bank Limited
SECTOR: BANKING
SCORE CARD:
All the values as on NSE on 27/06/08
38Amity Business School
Standard Deviation 81.48
Institutional Holding (%) 57.43
Dividend Yield 3.22
P/E 22.84
Market Capitalization(Rs Cr) 77664
CMP(Rs.) 652.15
52 week - high 1455.50
52 week - low 675.10
Face Value (Rs.) 10.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
39/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):
X - axis: No. of days
Y - axis: Value in Rs.
39Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
40/72
Analysis of Stock Market
ICICI BANK
COMPANY PROFILE:
ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$
100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended
March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian
stock exchanges in terms of free float market capitalization. The Bank has a network of
about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. The Bank
currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Unites
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany.
BUSINESS:
The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence
in 18 countries. ICICI Bank is India's second-largest bank with total assets of Rs.
3,997.95 billion (US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58
billion for the year ended March 31, 2008. ICICI Bank is second amongst all the
companies listed on the Indian stock exchanges in terms of free float market
capitalization. ICICI Bank offers a wide range of banking products and financial servicesto corporate and retail customers through a variety of delivery channels and through its
specialised subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management.
40Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
41/72
Analysis of Stock Market
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).
SHAREHOLDING PATTERN:
FINANCIALS:
E = Expected, *for (07-08 and 06-07)
41Amity Business School
Face Value 10.00
No. of Shares % Holding
Promoters holding - -
Institutional investors
Banks Fin. Inst. and Insurance 122522932 11.01
FII's 448624885 40.32
Sub total 638977003 57.43Other investors
Private Corporate Bodies 65494745 5.89
NRI's/OCB's/Foreign Others 5055898 0.45
Others 317963554 28.58
Sub total 388514197 34.92
General public 85196295 7.66
Grand total 1112687495 100.00
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 40,024.84 30,788.34 33.89 22,994.29 14,306.13
Operating profit 24,014.90 19,729.57 40.15 14,077.37 7,710.91Net profit 4,802.98 4,157.73 33.68 3,110.22 2,540.07
OPM 60.00 64.08 286Bps 61.22 53.90
NPM 12.00 10.50 -25Bps 10.75 13.17
EPS(Rs.) 43.16 37.37 8.06 34.58 28.55
ROE - NA - 12.79 11.43
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
42/72
Analysis of Stock Market
FUTURE GROWTH POTENTIAL:
The company is moving ahead strongly and the future of the company is indeed bright.
The growing middle class of the country is a major prospective client category which
seems to speed up the business turnover and base.
MUTUAL FUNDS INVESTED IN THE COMPANY:
VALUATIONS AND RISKS:
42Amity Business School
Scheme % of scheme asset size
Birla Dynamic Bond Fund - Retail Plan - Growth254.53
Birla Dynamic Bond Fund - Retail Plan - Dividend-Quarterly254.53
Standard Chartered Fixed Maturity Plan - 18 Months Series 1- A - Growth
99.55
Standard Chartered Fixed Maturity Plan - 18 Months Series 1- B - Growth
99.55
Standard Chartered Fixed Maturity Plan - 18 Months Series 1- A - Dividend
99.55
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2181http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051791&schemeplancode=2181http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053586&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053586&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053585&schemeplancode=2067 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
43/72
Analysis of Stock Market
The stock is currently trading at a P/E ratio of 22.84.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.43.16.Thus at the current Market Price of Rs.652.15, the stock is trading at a one year forward
P/E of 15.11.
RATING: ACCUMULATE.
Infosys Technologies Limited
SECTOR: INFORMATION TECHNOLOGY
SCORE CARD:
43Amity Business School
Standard Deviation 65.28
Institutional Holding (%) 40.49
Dividend Yield 2.33
P/E 22.23
Market Capitalization(Rs Cr) 101921
CMP(Rs.) 1705.45
52 week - high 2141.95
52 week - low 1255.00
Face Value (Rs.) 5.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
44/72
Analysis of Stock Market
All the values as on NSE on27/ 06/08
44Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
45/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):
X - axis: No. of days
Y - axis: Value in Rs.
45Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
46/72
Analysis of Stock Market
COMPANY PROFILE:
Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with
US$ 250. Today, it is a global leader in the "next generation" of IT and consulting with
revenues of over US$ 4 billion. Infosys has a global footprint with over 40 offices and
development centers in India, China, Australia, the Czech Republic, Poland, the UK,
Canada and Japan. Infosys has over 91,000 employees. Infosys takes pride in building
strategic long-term client relationships. Over 97% of their revenues come from existing
customers. Fortune ranked Infosys as 10th among Top Companies for Leaders 2007.
Infosys defines designs and delivers technology-enabled business solutions that help
Global 2000 companies win in a Flat World. Infosys also provides a complete range of
services by leveraging the domain and business expertise and strategic alliances with
leading technology providers.
BUSINESS:
Infosys' service offerings spanbusiness and technology consulting, application services,
systems integration,product engineering,custom software development, maintenance, re-
engineering, independent testing and validation services,IT infrastructure services and
business process outsourcing.The refreshing approach of the company to consulting has
been recognized by the industry and leading business publications. In July 2007,
Consulting Magazine named Romil Bahl, managing director and co-founder of Infosys
Consulting, Inc., among its list of 2007 Annual Top 25 Consultants. In January 2006,
Forrester Research named Infosys among the leading Indian IT Services companies
offering consulting services. The report said: "Infosys is best positioned to offer high-
value management consulting skills."
46Amity Business School
http://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/locations.asphttp://www.infosys.com/flat-world/business/default.asphttp://www.infosys.com/about/alliances/default.asphttp://www.infosys.com/industries/default.asphttp://www.infosys.com/consulting-services/default.asphttp://www.infosys.com/IT-services/application-services/default.asphttp://www.infosys.com/IT-services/systems-integration/default.asphttp://www.infosys.com/engineering-services/product-engineering/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/IT-services/independent-validation-services/default.asphttp://www.infosys.com/IT-services/infrastructure-services/default.asphttp://www.infosys.com/BPO-services/default.asphttp://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/history.asphttp://www.infosys.com/about/who-we-are/locations.asphttp://www.infosys.com/flat-world/business/default.asphttp://www.infosys.com/about/alliances/default.asphttp://www.infosys.com/industries/default.asphttp://www.infosys.com/consulting-services/default.asphttp://www.infosys.com/IT-services/application-services/default.asphttp://www.infosys.com/IT-services/systems-integration/default.asphttp://www.infosys.com/engineering-services/product-engineering/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/engineering-services/default.asphttp://www.infosys.com/IT-services/independent-validation-services/default.asphttp://www.infosys.com/IT-services/infrastructure-services/default.asphttp://www.infosys.com/BPO-services/default.asp -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
47/72
Analysis of Stock Market
SHAREHOLDING PATTERN:
47Amity Business School
Face Value 5.00
No. of Shares % of HoldingIndian Promoters 94495978 16.52
Sub total 94495978 16.52
Institutional investors
Banks Fin. Inst. and Insurance 24036054 4.20
FII's 190821914 33.36
Sub total 231576661 40.49
Other investors
Private Corporate Bodies 16348351 2.86
NRI's/OCB's/Foreign Others 16869562 2.95
Others 112512428 19.67
Sub total 145730341 25.48
General public 100192778 17.52
Grand total 571995758 100.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
48/72
Analysis of Stock Market
FINANCIALS:
E = Expected, *for (07-08 and 06-07)
FUTURE GROWTH POTENTIAL:
Infosys' services and business solutions are strengthened by alliances with leading
technology partners. It recommends technologies to the client based on what is best for
the client. In a marketing alliance, Infosys and the alliance partner jointly deliver business
solutions which leverage Infosys' industry, functional and technical expertise, Infosys'
Global Delivery Model and the alliance partner's technology and services. In a
technology alliance, Infosys works with an alliance partner to build business and
technical competency in the alliance partner's technology through training, engagement
with the alliance partner's technical support and development teams and the development
of tools and methodologies at Infosys' Centers of Excellence.
MUTUAL FUNDS INVESTED IN THE COMPANY:
Scheme % of scheme asset size
Franklin Infotech Fund - Growth40.59
Franklin Infotech Fund - Dividend40.59
UTI Growth Sector Fund - Software - Growth21.36
UTI Growth Sector Fund - Software - Dividend21.36
48Amity Business School
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 17,995.20 15,648.00 19.00 13,149.00 9,028.00
Operating profit 5,038.66 4,963.00 17.52 4,223.00 2,989.00
Net profit 4,678.75 4,470.00 18.16 3,783.00 2,421.00
OPM 28.00 31.72 -40Bps 32.12 33.11
NPM 26.00 27.37 -60Bps 27.97 26.40
EPS(Rs.) 81.79 78.15 18.15 66.14 87.72
ROE - NA - 33.89 35.10
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050298&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050674&schemeplancode=2067 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
49/72
Analysis of Stock Market
SBI Magnum Sector Funds Umbrella - IT -Growth
9.05
VALUATIONS AND RISKS:
The stock is currently trading at a P/E ratio of 22.23.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.81.79.
Thus at the current Market Price of Rs.1705.45, the stock is trading at a one year forward
P/E of 20.85.
RATING: HOLD.
Larsen &Toubro
SECTOR: CAPITAL GOODS AND ENGINEERING
SCORE CARD:
49Amity Business School
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14050725&schemeplancode=2066 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
50/72
Analysis of Stock Market
All the values as on NSE on 27/06/08
50Amity Business School
Standard Deviation 219.02
Institutional Holding (%) 54.30
Dividend Yield 0.84
P/E 31.44
Market Capitalization(Rs Cr) 68974
CMP(Rs.) 2265.80
52 week - high 4690.00
52 week - low 2055.55
Face Value (Rs.) 2.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
51/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):
X - axis: No. of days
Y - axis: Value in Rs.
51Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
52/72
Analysis of Stock Market
COMPANY PROFILE:
Larsen & Toubro (L&T) is a technology-driven USD 7 billion company that infuses
engineering with imagination. It offers a wide range of advanced solutions, services and
products. L&T's in-house capabilities in technology development are complemented by
tie-ups with world leaders. It provides state-of-the-art products & solutions to a large and
diverse customer base. L&T was founded in Bombay (Mumbai) in 1938 by two Danish
engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly
committed to developing India's engineering capabilities to meet the demands of
industry. Beginning with the import of machinery from Europe, L&T rapidly took on
engineering and construction assignments of increasing sophistication. Today, the
company sets global engineering benchmarks in terms of scale and complexity.
BUSINESS:
Larsen & Toubro (L&T) is a technology-driven USD 7 billion company that infuses
engineering with imagination. It offers a wide range of advanced solutions, services and
products. Larsen & Toubro Limited (L&T) is a technology, engineering, construction and
manufacturing company. It is one of the largest and most respected companies in India's
private sector.
Seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of
business.
52Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
53/72
Analysis of Stock Market
SHAREHOLDING PATTERN:
FINANCIALS:
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 34,003.10 25,187.48 40.71 17,900.59 14,883.68
Operating profit 3,740.34 2,814.63 61.15 1,746.54 957.50
Net profit 2,720.00 2,173.42 54.91 1,403.02 1,012.14
OPM 11.00 11.17 141 Bps 9.76 6.43
NPM 8.00 8.43 79Bps 7.64 6.56
EPS(Rs.) 93.09 74.34 24.81 49.53 73.66
ROE - 27.50 3.02 24.48 22.05
E = Expected, *for (07-08 and 06-07)
53Amity Business School
Face Value 2.00
No. of Shares % Holding
Promoters holding - -
Institutional investors
Banks Fin. Inst. and Insurance 63789649 21.82
FII's 48556421 16.61
Sub total 158743787 54.30
Other investors
Private Corporate Bodies 11186252 3.83
NRI's/OCB's/Foreign Others 2442118 0.84
Directors/Employees 3232312 1.11
Others 49278207 16.86
Sub total 66009495 22.58
General public 67444714 23.07
Grand total 292197996 99.96
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
54/72
Analysis of Stock Market
FUTURE GROWTH POTENTIAL:
With the economic progress of the country and the prospects of the other businesses
looking good, the company hopes to continue with the current momentum. The following
points illustrate its achievements and a glimpse of what is to come.
L&T-Paul Wurth Consortium Commissions Indias Largest Blast Furnace at Jamshedpur.
L&T Bagged Electrical Project Orders worth Rs. 6,350 million in the Gulf Region.
L&T and GE Energy entered Control System Partnership Agreement.
MUTUAL FUNDS INVESTED IN THE COMPANY:
Scheme % of scheme asset size
ICICI Prudential FMP S 39 - 3 M Plan A -Growth
99.61
ICICI Prudential FMP S 39 - 3 M Plan A -Dividend
99.61
BOB Balance Fund - Growth26.55
BOB Balance Fund - Dividend26.55
Baroda Global Fund - Growth14.92
VALUATIONS AND RISKS:
The stock is currently trading at a P/E ratio of 31.44.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.93.09.
Thus at the current Market Price of Rs.2265.80, the stock is trading at a one year forward
P/E of 24.3.
RATING: ACCUMULATE (STRONGLY RECOMMENDED).
54Amity Business School
http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl02%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl04%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl05%24lbl_newsname%27%2C%27%27%29/http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl02%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl04%24lbl_newsname%27%2C%27%27%29/http://__dopostback%28%27ctl00%24contentarea%24datagrid1%24ctl05%24lbl_newsname%27%2C%27%27%29/http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14053323&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051383&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
55/72
Analysis of Stock Market
Reliance Infrastructure Limited
(formerly Reliance Energy)
SECTOR: POWER AND ENERGY
SCORE CARD:
All the values as on NSE on 27/06/08
55Amity Business School
Standard Deviation 188.80
Institutional Holding (%) 41.75
Dividend Yield 1.19
P/E 22.53
Market Capitalization(Rs Cr) 20970
CMP (Rs) 886.55
52 week - high 2641.00
52 week - low 562.00
Face Value (Rs.) 10.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
56/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):
X - axis: No. of days
Y - axis: Value in Rs.
56Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
57/72
Analysis of Stock Market
Reliance Infrastructure
COMPANY PROFILE:
Reliance Energy Limited, now Reliance infrastructure limited incorporated in 1929, is a
fully integrated utility engaged in the generation, transmission and distribution of
electricity. It ranks among Indias top listed private companies on all major financial
parameters, including assets, sales, profits and market capitalization. The companys
Vision is to be amongst the most admired and most trusted integrated utility companies in
the world, delivering reliable and quality products and services to all customers at
competitive costs, with international standards of customer care thereby creating
superior value for all stakeholders and also to set new benchmarks in standards of
corporate performance and governance through the pursuit of operational and financial
excellence, responsible citizenship and profitable growth.
BUSINESS:
A constituent of the Reliance Anil Dhirubhai Ambani Group, Reliance Energy is India s
foremost private sector utility with aggregate estimated revenues of Rs 9,500 crore
(US$2.1 billion)and total assets of Rs 10,700 crore (US$2.4 billion). Reliance Energy
distributes more than 21 billion units of electricity to over 25 million consumers in
Mumbai, Delhi, Orissa and Goa, across an area that spans 1,24,300 sq.kms. It generates
941 MW of electricity, through its power stations located in Maharashtra, Andhra
Pradesh, Kerala, Karnataka and Goa.Reliance Energy companies currently pursue several
gas, coal, wind and hydro-based power generation projects in Maharashtra, Uttar
Pradesh, Arunachal Pradesh and Uttaranchal with aggregate capacity of over 13,510
MW. These projects are at various stages of development.
57Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
58/72
Analysis of Stock Market
SHAREHOLDING PATTERN:
FINANCIALS:
E = Expected, *for (07-08 and 06-07)
58Amity Business School
Face Value 10.00
No. of Shares % Holding
Indian Promoters 85028643 35.95
Sub total 85028643 35.95
Institutional investors
Banks Fin. Inst. and Insurance 42976519 18.17
FII's 43858727 18.54
Sub total 98759602 41.75
Other investors
Private Corporate Bodies 15652015 6.62NRI's/OCB's/Foreign Others 1448686 0.61
Govt. 81368 0.03
Others 6088813 2.57
Sub total 23270882 9.84
General public 29471135 12.46
Grand total 236530262 100.00
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 7,891.46 6,313.17 10.89 5,692.95 3,998.22
Operating profit 631.31 495.37 3.10 480.45 712.32
Net profit 1,104.80 991.33 23.69 801.45 730.89OPM 8.00 7.85 -59Bps 8.44 17.82
NPM 14.00 13.22 103Bps 12.19 15.86
EPS(Rs.) 46.70 42.07 27.32 35.06 34.42
ROE - NA - 9.27 9.24
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
59/72
Analysis of Stock Market
FUTURE GROWTH POTENTIAL:
The company has a number of projects in the hand and is poised to become a giant in the
times to come. This was evident from the IPO issue of the company of approx.3 billionwhich was Indias largest IPO so far. The IPO was oversubscribed by about 89 times.
Though due to the overall market correction, the price could not be maintained and the
promoter offered a bonus issue of 3:5 shares to the shareholders to remain invested and
be confident of the fundamentals of the company. The real power of the company will be
unleashed after a few years when the projects are completed and start generating much
more revenue for the company.
MUTUAL FUNDS INVESTED IN THE COMPANY:
VALUATIONS AND RISKS:
59Amity Business School
Scheme % of scheme asset size
BOB Growth Fund - Growth8.70
BOB Growth Fund - Dividend8.70
Taurus INFRA-TIPS - Growth8.23
Taurus INFRA-TIPS - Dividend8.23
Reliance NRI Equity Fund - Growth8.07
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051816&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051384&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052662&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051816&schemeplancode=2066 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
60/72
Analysis of Stock Market
The stock is currently trading at a P/E ratio of 22.53.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.46.70.
Thus at the current Market Price of Rs.886.55, the stock is trading at a one year forward
P/E of 18.98.
RATING: ACCUMULATE FOR A LONG TERM INVESTMENT.
Reliance Industries Limited
SECTOR: OIL & GAS
SCORE CARD:
60Amity Business School
Standard Deviation 198.83
Institutional Holding (%) 26.42
Dividend Yield 0.59
P/E 16.69
Market Capitalization(Rs Cr) 325508
CMP(Rs.) 2182.65
52 week - high 3298.00
52 week - low 1676.10
Face Value (Rs.) 10.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
61/72
Analysis of Stock Market
All the values as on NSE on 27/06/08
61Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
62/72
Analysis of Stock Market
STOCK PRICE MOVEMENTS (5TH MAY TO 27TH JUNE):
X - axis: No. of daysY - axis: Value in Rs.
62Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
63/72
Analysis of Stock Market
COMPANY PROFILE:
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest
private sector enterprise, with businesses in the energy and materials value chain. Group's
annual revenues are in excess of US$ 34 billion. The flagship company, Reliance
Industries Limited, is a Fortune Global 500 company and is the largest private sector
company in India.Backward vertical integration has been the cornerstone of the evolution
and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a
strategy of backward vertical integration - in polyester, fibre intermediates, plastics,
petrochemicals, petroleum refining and oil and gas exploration and production - to be
fully integrated along the materials and energy value chain.The Group's activities span
exploration and production of oil and gas, petroleum refining and marketing,
petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.
BUSINESS:
The company is a significant contributor to India's economic growth:
Revenues equivalent to 3% of Indias GDP
13.4% of Indias total exports
4.9% of the Government of Indias indirect tax revenues
6.7% of the total market capitalization in India
Weightage of 16.5% in the BSE Sensex
Weightage of 12.5% in the Nifty Index
63Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
64/72
Analysis of Stock Market
SHAREHOLDING PATTERN:
64Amity Business School
Face Value 10.00
No. of Shares % Holding
Indian Promoters 746704874 51.37
Sub total 746704874 51.37
Institutional investors
Banks Fin. Inst. and Insurance 85404722 5.88
FII's 259136306 17.83
Sub total 384091089 26.42
Other investors
Private Corporate Bodies 72205802 4.97
NRI's/OCB's/Foreign Others 11627417 0.80
Govt. 3742983 0.26Others 53954815 3.71
Sub total 141531017 9.74
General public 181321621 12.47
Grand total 1453648601 100.00
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
65/72
Analysis of Stock Market
FINANCIALS:
E = Expected, *for (07-08 and 06-07)
65Amity Business School
2008-09 E 2007-08YoY
Chg(%)*2006-07 2005-06
Net Sales 1,74,086.25 1,39,269.0 25.60 1,10,886.00 89,124.00Operating profit 29,246.49 23,306.00 27.98 18,210.00 14,299.00
Net profit 26,112.93 19,458.00 78.38 10,908.00 9,069.00
OPM 16.80 16.73 31Bps 16.42 16.04
NPM 15.00 13.88 406Bps 9.82 10.10
EPS(Rs.) 179.63 133.82 71.02 78.25 65.06
ROE - 20.10 0.61 19.49 20.08
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
66/72
Analysis of Stock Market
FUTURE GROWTH POTENTIAL:
The company has made various oil and gas discoveries in the recent times and these are
considered to drive the success of the company in the times to come.
Credit Ratings of the company clearly reflect the confidence the world has in the
companys prospects.
Rating Agency Instrument Rating
CRISIL Long Term Debt AAA
Fitch Long Term Debt Ind AAA
CRISIL Short Term Debt P1+
CRISIL Working Capital Debt AAA
Moody's International Debt Baa2
S&P International Debt BBB
Fitch International Debt BBB -
MUTUAL FUNDS INVESTED IN THE COMPANY:
66Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
67/72
Analysis of Stock Market
VALUATIONS AND RISKS:
The stock is currently trading at a P/E ratio of 16.69.
For the year ending FY 09, the company is expected to report earnings per share of
Rs.179.63.
Thus at the current Market Price of Rs.2182.65, the stock is trading at a one year forward
P/E of 12.15.
67Amity Business School
Scheme % of scheme asset size
Baroda Global Fund - Growth18.04
Baroda Global Fund - Dividend18.04
Franklin India Index Fund - BSE Sensex Plan -Growth
16.01
Franklin India Index Fund - BSE Sensex Plan -Dividend
16.01
Tata Index Fund - Sensex Plan (A) - Growth 15.87
http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051244&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051244&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14052195&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2066http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051552&schemeplancode=2067http://money.rediff.com/money/jsp/mutualfund.jsp?schemecode=14051244&schemeplancode=2066 -
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
68/72
Analysis of Stock Market
RATING: ACCUMULATE.
68Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
69/72
Analysis of Stock Market
Conclusions
Based on the research done, the following conclusions and ratings are given for the
various companies under consideration.
1. Bharti Airtel Hold. The company is doing well and looks forward to increasing both
business penetration and profits thus creating value for the shareholders. Hence the rating
- hold.
2. DLF Sell. Though the company is going at a decent pace, there doesnt seem to be
much appreciation in the stock in the near future. Only the investors having a long term
orientation are advised to hold the stock.
3. HUL Hold. The FMCG sector which is traditionally a slow growth sector is seeing a
good growth due to rising middle class. The company seems to capitalize on this
opportunity. Hence the rating- Hold.
4. ICICI Bank Accumulate. The Banking sector though is suffering from interest rate
hardening, the performance of the second largest Bank of India has been better than its
peers. The company has strong growth base and a large consumer base to cater and seems
to be well positioned. Hence the rating accumulate.
5. Infosys Hold. The IT bellwether of the country has seen mixed response and faced
challenges on export front due to Rupee appreciation. Now the situation as the currency
69Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
70/72
Analysis of Stock Market
has depreciated making the exports viable again and the company looks in a comfortable
position. Hence the rating Hold.
6. L&T Accumulate. The company is experiencing rapid progress due to infrastructure
and Engineering requirements boom and is in a perfect position to achieve brilliant
results in the future. Hence the rating Accumulate.
7. Reliance Infrastructure Accumulate. The company has various projects in its kitty
and is approaching towards them at a reasonable pace. Though the company will take
some time to come in full swing, the overall future scenario of the company is extremely
well. Hence the rating Accumulate for a long term investor.
8. RIL Accumulate. The company is one of the best companies of the country and is
constantly creating new benchmarks. The companys refining capacity will become very
large once the $5 Billion plant in Jamnagar gets completed in the coming months. The
company seems to be poised to grow and perform and crate value for the shareholders.
Hence the rating Accumulate.
70Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
71/72
Analysis of Stock Market
Implications for Future Research
The research on the above stocks has been done for the period 5th May to 27th June and
the results and findings are reported as based on this period. During this period, the way
the stocks performed on the bourses and the news and recent events which occurred in
the company were taken into consideration.
All the findings and conclusions thus pertain to the aforesaid period and are applicable
for the near future. The stock market sentiments and companys policies and business
keep on experiencing fluctuations and change with time. The model of research used
done is widely accepted and implemented by professional financial advisors. Any further
research on the subject may involve more complicated models like Tobins Q ratio, PEG
ratio and Markowitz Criterion etc.
71Amity Business School
-
7/29/2019 ANALYSIS OF STOCK MARKET l Finance.doc
72/72
Analysis of Stock Market
References
Books:
Chandra P. (2008). Financial Management. (TMH)
Pandey I.M. (2007). Financial Management. (VIKAS)
Levin I. Richard &Rubin S.David. (2006). Statistics For Management. (PHI)
Newspapers:
The Economic Times
Business Standard
Magazines:
Capital Markets
Business Today
Outlook Money
Value Research
Internet:
Websites of NSE, BSE, RBI, SEBI, CSO, Bharti Airtel, DLF, HUL, ICICI, Infosys,
L&T, Reliance Infrastructure, RIL, money.rediff, money control, google etc.