Fundamental & Technichal Anlysis

8/8/2019 Fundamental & Technichal Anlysis

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Fundamental Analysis

Fundamental analysis involves examining the economic, financial and other

qualitative and quantitative factors related to a security in order to determine its intrinsic

value. While typically this method is used to evaluate the value of a companys stock, its use

can be extended for any kind of security, such as bonds or currency.

Fundamental analysis, which is also known as quantitative analysis, involves delving

into a companys financial statements (such as profit and loss account and balance sheet) in

order to study various financial indicators (such as revenues, earnings, liabilities, expenses

and assets). Such analysis is usually carried out by analysts,brokers and savvy investors.

The intrinsic value of share depends on a multitude of factors. The earnings of the

company, the growth rate and the risk exposure of the company have a direct bearing on the

price of the share. These factors in turn rely on the host of other factors like economic

environment in which they function, the industry they belong to, and finally companies own

performance. The fundamental school of thought appraised the intrinsic value of shares

through:

1. Economic Analysis

2. Industry Analysis

3. Company Analysis

On the basis of these three analyses the intrinsic value of the shares are determined.

This is considered as the true value of the share. If the intrinsic value is higher than the

market price it is recommended to buy the share, if it is equal to market price hold the share

and if it is less than the market price sell the shares.

Economic Analysis
http://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.htmlhttp://www.economywatch.com/trading/fundamental-analysis.html


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The economy of India is the eleventh largest economy in the world by nominal GDP

and the fourth largest bypurchasing power parity (PPP). Following strong economic reforms

from the socialist inspired economy of a post-independence Indian nation, the country began

to develop a fast-paced economic growth, as free market principles were initiated in 1990 for

international competition and foreign investment. India is an emerging economic power with

a very large pool of human and natural resources, and a growing large pool of skilled

professionals. Economists predict that by 2020, India will be among the leading economies of

the world.

The Gross Domestic Product (GDP) in India expanded at an annual rate of 8.80 percent in

the last reported quarter. From 2004 until 2010, India's average quarterly GDP Growth was

8.37 percent reaching an historical high of 10.10 percent in September of 2006 and a record

low of 5.50 percent in December of 2004. India's diverse economy encompasses traditional

village farming, modern agriculture, handicrafts, a wide range of modern industries, and a

multitude of services. Services are the major source of economic growth, accounting for more

than half of India's output with less than one third of its labor force. The economy has posted

an average growth rate of more than 7% in the decade since 1997, reducing poverty by about

10 percentage points.

Through this chart we can see that after the effects of recession Indian economy is

coming out and again its on growth and its result is India's economy expanded 8.8% in the

second quarter from a year earlier, compared to an 8.6% on-year expansion in the first, and

lifted by robust activity in manufacturing.

Inflation in Indian Economy
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Free_markethttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)http://en.wikipedia.org/wiki/Gross_domestic_producthttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)http://en.wikipedia.org/wiki/Economyhttp://en.wikipedia.org/wiki/Free_market


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The inflation rate in India was last reported at 11.25 percent in July of 2010. From

1969 until 2010, the average inflation rate in India was 7.99 percent reaching an historical

high of 34.68 percent in September of 1974 and a record low of -11.31 percent in May of

1976. Inflation rate refers to a general rise in prices measured against a standard level of

purchasing power. The most well-known measures of Inflation are the CPI which measures

consumer prices, and the GDP deflator, which measures inflation in the whole of the

domestic economy.

Along with the growth of GDP, if the inflation rate also increases, then the real rate of

growth would be very little. The demand in the consumer product industry is significantly

affected. The industries which come under government price control policy may lose the

market. If there is mild level of inflation, it is good to the stock market but high rate of

inflation is harmful to the stock market. But we can see as the government tried hard todecrease the inflation.

Interest rate in India


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The benchmark interest rate (reverse repo) in India was last reported at 6.00 percent. In India,

interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors.

The official interest rate is the benchmark repurchase rate. , From 2000 until 2010, India's

average interest rate was 5.82 percent reaching an historical high of 14.50 percent in August

of 2000 and a record low of 3.25 percent in April of 2009. This page includes: India Interest

Rate chart, historical data and news.

The interest rate affects the cost of financing to the firms. A decrease in interest rate

implies lower cost of finance for firms and more profitability. More money is available at a

lower interest rate for the brokers who are doing business with borrowed money. Available of

cheap fund, encourage speculation and rise in the price if shares. The interest rate India is

having is neither too low nor too high so we can say that it is the ideal scenario for the

investor to borrow the money from the market.

Electrical equipment industry


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Indias manufacturing sector is in full swing. While revival of automation projects

typically one of the first indicators for any growth in the economy is already under way,

an 11.3% rise in the electrical equipment industry has underscored the overall growth story in

the worlds second fastest growing economy. The Rs 52,000-crore industry, which sells

cables, switchgears, transformers and other large electrical products, saw a major part of its

growth come in the second half of 2009-10, after liquidity improved and companies resumed

expansion plans.

According to the Indian Electrical and Electronics Manufacturers Association

(IEEMA), an apex body representing the Indian electrical equipment industry, the sector

grew about 20% in the second quarter, compared with 1.7% in the first half. This demand

growth could likely see a two-fold increase in the next 2-3 years, said the associations

director-general Sunil More, adding that this was due to a pick-up in housing and

construction.

Some of the companies in this sector are Siemens, L&T, ABB, Crompton Greaves,

Schneider Electric and WS Industries. Coming after a lull of two years, the growth in

electricals will strengthen policy measures as the government is working to restrict Chinese

power equipment makers. Since spends on automation and electricals in any project are

equal, it was expected that growth in automation would also give a boost to the electricals

sector, said SR Venkatapathy, head of research at global advisory, ARC. Also as prices of

electrical equipment are typically stable unlike that of the automation sector, higher

electricals sales imply that projects have been revived.

The industry has posted a 30% growth in the fourth quarter in sales of rotating

machines, switchgear and cables as a recovery in real estate and infrastructure pushed up the

demand for such products. The growth in demand mainly came from industries such as

power, textile, steel and cement. Analysts and industry experts said the growth will be

sustained as most of the transmission and distribution projects are likely to begin in the next

fiscal year, mainly by the Power Grid Corporation.

Demand for power equipment is expected to rise as India is targeting at least 9%

GDP growth for the year ahead, said Kuljit Singh, partner and head of transactions advisory

at Ernst & Young. India has historically faced a demand-supply gap and this will feed the

electrical industry. However, most of the orders would be through EPC route with more new

players entering the business and sub-contracting the same to existing contractors. It isexpected that competition would be intense. The government plans to add about 12,000 mw


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of capacity by the end of this fiscal, including from renewable sources. The Central

Electricity Authority has set a target to add more than 21,000 mw capacity by the end of

2012.

Company analysis ABB (Sandeep Singh A-

19)


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General Information

Name ABB Ltd.

Sector ELECTRICAL EQUIPMENT

Current Price 908.05

Price Change 27.70 / 3.15%

Previous Close880.35

Average Volume 154289

Nse Code ABB

Bse Code 500002

Part of Index BSE BSE 100

Part of Index NSE Nifty 50

Futures and options Yes More F&O Shares
http://www.topstockresearch.com/index/BSE_100.htmlhttp://www.topstockresearch.com/index/NIFTY_50.htmlhttp://www.topstockresearch.com/index/F_N_O.htmlhttp://www.topstockresearch.com/index/BSE_100.htmlhttp://www.topstockresearch.com/index/NIFTY_50.htmlhttp://www.topstockresearch.com/index/F_N_O.html


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Company Profile

ABB Ltd is one of the world's leading engineering companies, which helps customers touse electrical power effectively and to increase industrial productivity in a sustainable

way. The company is a leader in power and automation technologies that enable utility

and industry customers to improve performance while lowering environmental impact.

They have served utility and industry customers for over 50 years with the complete

range of engineering, products, solutions and services in areas in Automation and Power

technology. They are having their operations in 14 manufacturing facilities in India and

serving their customers through an extensive countrywide presence with more than 18

marketing offices, 8 service centers, 3 logistics warehouses and a network of over 800

channel partners.

The company segments includes: power systems, which offers turnkey systems

and services for transmission and distributions for power grid and power plants,

instrumentation, control and balance of power plants; power products, which

manufactures, engineers, supplies key components to transmit and distribute electricity,

and also produces transformers, high and medium voltage switchgears, circuit breakers,

capacitors, distribution relays; process automation, which provides integrated solutions

and served oil and gas, power, chemicals and pharmaceuticals, pulps and paper, metals

and minerals, marine and turbo charging industries; automation products, which provides

motors, variable speed drives, low voltage products, instrumentation and power

electronics; Others consists of robotics systems. ABB Ltd was incorporated on December

24, 1949 as Hindustan Electric Company Ltd. In September 24, 1965, the name of the

company was changed to Hindustan Brown Boveri Ltd. In the year 1989, Asea Ltd was

amalgamated with the company with effect from January 1, 1989 and the companychanged their name to Asea Brown Boveri Ltd with effect from October 13, 1989.

In the year 1995, Flakt India Ltd was amalgamated with the company with

effect from October 5, 1995. During the year 1994-95, ABB Zurich and Daimler-Benz

AG, Germany established a joint venture company, namely 'ABB Daimler-Benz

Transportation AG' (Adtranz) in Germany. Also, a subsidiary of Adtranz was

incorporated in India namely, 'ABB Daimler-Benz Transportation Ltd' which took over

the Transportation Business of the company with effect from January 1, 1996. In the year

1999, the power generation business was de-merged and transferred to ABB Alstom


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Power India Ltd with effect from April 1, 1999. The name of the company was changed

to ABB Ltd with effect from April 16, 2003.

In the year 2004, the company introduced new range of wiring accessories

including switches, regulators and sockets in the Indian market. They made major

expansions in their installed capacity of Motors and Other Machines, Switchgear of all

types, Turbochargers, Transformers, Electronic Control and Supply Units for Variable

Speed Drives and Other applications Power Capacitors of all types. In July 12, 2004, the

company divested their Control Valves Business to Kent Introl Pvt Ltd. They added

several new products under Power Technologies and Automation Technologies divisions.

In the year 2005, the company won the first major equipment order for 765 KV extra-

high voltage (EHV) transformers and shunt reactors from the National Thermal PowerCorporation (NTPC) and Power Grid Corporation of India Ltd.

They established a technology center in Nasik for medium voltage power

technologies cater to the fast developing power distribution sector. In the year 2006, they

entered into an MoU with IIT Delhi In 2007, the company received an order worth Rs

186 crore for integrated power distribution management system. In September 2007, the

company won an order Rs 933 million from KHD Humboldt Wedag GmbH, Germany,

for providing a turnkey electrics and automation solution for a 5000 TPD capacity green-

field cement plant at Katrana in Jordan. Also, the company was awarded a turnkey

contract worth Rs 186 crores by Karnataka Power Transmission Corporation Ltd for

implementing an integrated Network Manager SCADA/ EMS/DMS (Supervisory Control

and Data Acquisition, Energy Management System, Distribution Management System)

solution. In October 2007, the company received orders worth Rs 512 crore from JSW

and their associated companies.

In February 2008, the company was awarded orders worth Rs 330 crore for

providing turnkey substation solutions and a range of power products to Powergrid

Corporation of India Ltd (PGCIL) as part of their efforts to strengthen the transmission

grid across the country. In June 2008, the company won orders worth Rs 295 crore for

providing power solution for JSW Energy for their upcoming thermal power plant in

Ratnagiri. In July 2008, the company won an order of Rs 312 crore for design, supply,

installation, testing and commissioning of electrical products and systems for a new

terminal T3 at Indira Gandhi International Airport in Delhi, India. Also, they won orders

worth Rs 455 crore from Vedanta Aluminium Ltd for providing automation and power


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products, systems and solutions for expansion of their aluminium smelter plant at

Jharsuguda in Orissa. In December 2009, the company won an order worth Rs 506 crore

from Bangalore Metro Rail Corporation Ltd for providing power solutions for a planned

metro network in Bangalore. In March 2010, the company won orders worth $22 from

Haryana Vidyut Prasaran Nigam Limited (HVPNL), a state-owned power utility in

northern India for providing four turnkey substations for the regional grid. The company

is setting up a Greenfield manufacturing plant at Nelamangala near Bangalore for

manufacturing automation products. The company has invested $50 million for setting up

the new factory.

Presence of ABB in India

In the company analysis the investor assimilates the several bits of information related

to the company and evaluates the present and future values of the stock. The risk and return

associated with the purchase of the stock is analyzed to take better investment decisions. The

valuation process depends upon the investors ability to elicit information from the

relationship and inter-relationship among the company related variables.

SWOT analysis of ABB

Strengths
http://www.wikiwealth.com/swothttp://www.wikiwealth.com/swot


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Large Installed Customer Base

Well Positioned Geographically

Weaknesses

History of Overpaying for Acquisitions

Opportunities

Strong Balance Sheet

Environment Regulation

Infrastructure Spending

Smart grid infrastructure could increase

Threats

Budgets under Pressure

Dividends:-

ABB paid dividend almost every year to its shareholders. They profits earn by them is

distributed among the shareholders as well as invested in the further projects. At ABB's

annual general meeting on April 26, 2010, ABB shareholders approved the Board of

Directors' proposal to pay a dividend for 2009 of 0.51 Swiss francs per share in the form of a

reduction in the nominal value of the shares from 1.54 Swiss francs to 1.03 Swiss francs.

The ex-dividend, record and payment dates have been approved and are as follows:

Latest trade datein order to

receive payment

Ex-date Record date Payment date

SIX SwissExchange

Fri., July 9, 2010 Mon., July 12,2010

Wed., July 14,2010

Thurs., July 15,2010
http://www.wikiwealth.com/swot-strength:large-installed-customers-basehttp://www.wikiwealth.com/swot-strength:well-positioned-geographicallyhttp://www.wikiwealth.com/swothttp://www.wikiwealth.com/swot-weakness:questionable-management-history-of-overpayinghttp://www.wikiwealth.com/swothttp://www.wikiwealth.com/swot-opportunity:strong-balance-sheethttp://www.wikiwealth.com/swot-opportunity:environment-regulationhttp://www.wikiwealth.com/swot-opportunity:infrastructure-spendinghttp://www.wikiwealth.com/swothttp://www.wikiwealth.com/swot-threat:state-federal-budgets-under-pressure-which-may-shttp://www.wikiwealth.com/swot-strength:large-installed-customers-basehttp://www.wikiwealth.com/swot-strength:well-positioned-geographicallyhttp://www.wikiwealth.com/swothttp://www.wikiwealth.com/swot-weakness:questionable-management-history-of-overpayinghttp://www.wikiwealth.com/swothttp://www.wikiwealth.com/swot-opportunity:strong-balance-sheethttp://www.wikiwealth.com/swot-opportunity:environment-regulationhttp://www.wikiwealth.com/swot-opportunity:infrastructure-spendinghttp://www.wikiwealth.com/swothttp://www.wikiwealth.com/swot-threat:state-federal-budgets-under-pressure-which-may-s


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New York StockExchange

Fri., July 9, 2010 Mon., July 12,2010

Wed., July 14,2010

Thurs., July 22,2010

NASDAQ OMXStockholm

Fri., July 9, 2010 Mon., July 12,2010

Wed., July 14,2010

Mon., July 19,2010

Historical information for ABB AB

Year Payment date Dividend per share (SEK) A and Bshare

1988 April 27 1.00

1989 May 23 1.20

1990 May 10 1.30

1991 May 14 0.70**

1992 May 11 1.80

1993 April 30 1.801994 April 26 1.00

1995 May 11 1.15

1996 May 2 1.60

1997 April 22 1.75

1998 April 21 2.10

1999 April 12 2.18

Important ratios of ABB

Dec '09

Dec '08

Dec '07

Dec '06

Dec '05

Per share ratios

Adjusted EPS (Rs) 19.06 23.26 25.8 78.95 49.98

Adjusted cash EPS (Rs) 21.35 25 27.33 85.19 55.44Reported EPS (Rs) 16.74 25.83 23.2 80.3 51.6


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Reported cash EPS (Rs) 19.02 27.56 24.73 86.54 57.06

Dividend per share 2 2.2 2.2 10 8

Operating profit per share(Rs)

29.41 38.68 38.13 118.78 79.81

Book value (excl rev res)

per share (Rs)

113.7

299.32 76.06 278.67 209.77

Book value (incl rev res) pershare (Rs.)

114.38

99.99 76.75 282.16 213.33

Net operating income pershare (Rs)

295.31

324.09

280.71

1,012.55

702.26

Free reserves per share (Rs)111.3

196.9 73.63 266.46 197.45

Profitability ratios

Operating margin (%) 9.96 11.93 13.58 11.73 11.36

Gross profit margin (%) 9.18 11.4 13.03 11.11 10.58

Net profit margin (%) 5.62 7.91 8.19 7.83 7.27Adjusted cash margin (%) 7.16 7.66 9.65 8.31 7.81

Adjusted return on networth (%)

16.76 23.42 33.92 28.33 23.82

Reported return on networth (%)

14.71 26 30.5 28.81 24.59

Return on long term funds(%)

26 39.34 51.38 44.61 38.79

Leverage ratios

Long term debt / Equity - - - - -

Total debt/equity - - - - -Owners fund as % of totalsource

100 99.99 99.96 99.86 99.69

Fixed assets turnover ratio 7.19 9.08 10.63 8.59 7.42

Liquidity ratios

Current ratio 1.51 1.41 1.36 1.39 1.38

Current ratio (inc. st loans) 1.51 1.41 1.36 1.39 1.38

Quick ratio 1.26 1.2 1.19 1.21 1.23

Inventory turnover ratio 8.94 11.47 13.11 13.05 15.99

Payout ratios

Dividend payout ratio (netprofit)

13.98 9.96 11.34 14.2 17.67

Dividend payout ratio (cashprofit)

12.29 9.33 10.64 13.17 15.98

Earning retention ratio 87.73 88.94 89.8 85.56 81.75

Cash earnings retentionratio

89.04 89.71 90.37 86.62 83.55


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Operating Results of the Company

The year 2010 saw the Company securing orders worth Rs 80,541 million, a modest

growth of 5% higher than the previous year's orders of Rs 76,682 million. The Company had

good inflow of orders particularly in the first half of the year, however due to the globalslowdown which also impacted the Indian economy, and liquidity crunch emanating from

sub-prime crisis in USA, investment decisions by our customers, particularly industrial

customers, were either deferred or postponed indefinitely. Sectorally, Power Products and

Automation Products saw a significantly higher growth in orders received. Process

Automation saw a modest growth of 7% while Power Systems saw a negative growth of 15%

largely due to management's decision to come out of Rural Electrification projects owing to

safety challenges as well as credit and technical risk perceptions. Company's order backlog at

the end of the year increased by 23% to Rs 61,618 million as compared to Rs 50,260 million

at the beginning of the year.

Revenues during the year were at Rs 69,675 million, a growth of 16% over the

previous year revenues of Rs 60,014 million. Reduced order inflow, increased credit risk and

request from certain customers to defer supplies in second half of the year, affected overall

rate of revenue growth. Due to execution of international projects undertaken in Process

Automation division, there was significant growth in export orders and revenues. Profit

before tax was Rs 8,332 million, 10% higher than Rs 7,565 million in the previous year.

Planned addition of new as well as revamped manufacturing capacities together with

matching addition in human resources and expanded sales organisation aimed at higher

expected scale of operations, increase in interest expenses and significant provision for bad

and doubtful debts affected the profitability. In the last quarter of the year, management

initiated several cost optimisation measures, which partially helped in improving the

profitability. Net profit after tax at Rs 5,474 million for the year was 11 % higher than the

previous year. Earnings per equity share (face value Rs 2) was higher at Rs 25.83 compared

to Rs 23.20 in the previous year.

In view of attractive long-term returns, the Company carried out and also have

currently been executing significant manufacturing capacities expansion projects aimed at

expanded range of offering and introduced several new products. Investment in fixed assets

during the year was higher at Rs 2,660 million.


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Performance Review

Orders received during the year at Rs 80,541 million were 5% higher compared to Rs

76,682 million in the previous year. Order backlog at the end of 2008 was healthy at Rs

61,618 million compared to Rs 50,260 million at the end of the previous year. Sales and otherincome for the year were higher by 16% at Rs 69,675 million compared to Rs 60,014 million

in the previous year. Profit before tax was higher at Rs 8,332 million compared to Rs 7,565

million in the previous year. Growth in profit was mainly attributable to volume growth and

operational efficiencies.

Profit after tax at Rs 5,474 million for the year has improved by 11 % compared to Rs

4,917 million in the previous year. Earning per equity share of face value of Rs 2/-

correspondingly improved to Rs 25.83 compared to Rs 23.20 in the previous year. Operating

performance of all the segments was better than previous year except of Power Systems

segment where revenues were at the same level of last year with lower operating margin due

to higher provision for doubtful debts. For detailed analysis of the performance, please refer

to the management's discussion and analysis section of the annual report.

Technical Development

New Products Developed:

750/200 kW, 4/6 pole, water cooled wind generator

Flameproof motors (Frame size 71 and 80)

Crane duty motors for both DOL and VFD supply

12 kV configurable breakers for retrofitting

Unigear panels with 44 kA short circuit rating

Outdoor vacuum circuit breaker for 40.5 kV nominal system voltages

36 kV compact substation

Standalone remote telephone subscriber

Oracle based historian development for ABB SCADA vantage system

Interface component between ABB SCADA vantage and third party SCADA

420 kV SF6 circuit breaker with pre insertion resistance

Spring drive operated 420 kV SF6 circuit breaker with pre insertion resistance

Micro-controller based universal time relay - NT10

Numeric under / over voltage relay

SPA to RS-485 converter, BCM10 for SPACOM relays

Surge capacitors

Comprehensive program for unbalance protection


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Dynaswitch for thyristor switched capacitor and dynacomp

Technology adaptation and innovation

Unigear panel localization, range developments and customization

Localization of VD4, Vmax circuit breakers

Localization of EL mechanism for circuit breaker

MCD-80 - A9BS/A9BT version to meet the global requirement

Oracle 10g RAC planning and configuration on UNIX and Windows based systems forimplementation of historians and terminal automation systems respectively

ABB SCADA vantage integration with ERP System (SAP ECC 6)

Type testing of relays as per IEC 60255 standards

Absorption of new products NI40/ 41, REJ603 & REF601 (IEC)

Manufacturing execution system implementation for REJ603 & REF601 products

Adoption of automated test system for REJ603 & REF601 products Development of indigenous components for relays substitution of obsolete components ofstatic relays

Major news about Company

Sep 14, 201013:02 Domestic acquisition lifts ABB

12:32 ABB India acquires Metsys

12:15 ABB acquires Metsys EngineeringAug 20, 201014:56 ABB inaugurates global wind power generator factory in India

14:43 ABB inaugurates fourth global power factory in VadodaraAug 19, 201017:56 ABB, Idea, Unitech out of Nifty from Oct 1Aug 02, 201013:00 IIFL on ABB: No improvement in business momentum

11:59 ABBJul 30, 201014:33 ABB net profit declines 54.17% in the June 2010 quarter

14:22 ABB drops after poor Q2 resultsJul 19, 2010
http://www.indiainfoline.com/Markets/News/Domestic-acquisition-lifts-ABB/3292144086http://www.indiainfoline.com/Markets/News/ABB-India-acquires-Metsys/3292066316http://www.indiainfoline.com/Markets/News/ABB-acquires-Metsys-Engineering/4930353582http://www.indiainfoline.com/Markets/News/ABB-inaugurates-global-wind-power-generator-factory-in-India/3260569466http://www.indiainfoline.com/Markets/News/ABB-inaugurates-fourth-global-power-factory-in-Vadodara/4912178733http://www.indiainfoline.com/Markets/News/ABB-Idea-Unitech-out-of-Nifty-from-Oct-1/4910343361http://www.indiainfoline.com/Markets/News/IIFL-on-ABB-No-improvement-in-business-momentum/4897612412http://www.indiainfoline.com/Markets/News/ABB/3214000790http://www.indiainfoline.com/Markets/News/ABB-net-profit-declines-54.17-percent-in-the-June-2010-quarter/3207958061http://www.indiainfoline.com/Markets/News/ABB-drops-after-poor-Q2-results/3207856960http://www.indiainfoline.com/Markets/News/Domestic-acquisition-lifts-ABB/3292144086http://www.indiainfoline.com/Markets/News/ABB-India-acquires-Metsys/3292066316http://www.indiainfoline.com/Markets/News/ABB-acquires-Metsys-Engineering/4930353582http://www.indiainfoline.com/Markets/News/ABB-inaugurates-global-wind-power-generator-factory-in-India/3260569466http://www.indiainfoline.com/Markets/News/ABB-inaugurates-fourth-global-power-factory-in-Vadodara/4912178733http://www.indiainfoline.com/Markets/News/ABB-Idea-Unitech-out-of-Nifty-from-Oct-1/4910343361http://www.indiainfoline.com/Markets/News/IIFL-on-ABB-No-improvement-in-business-momentum/4897612412http://www.indiainfoline.com/Markets/News/ABB/3214000790http://www.indiainfoline.com/Markets/News/ABB-net-profit-declines-54.17-percent-in-the-June-2010-quarter/3207958061http://www.indiainfoline.com/Markets/News/ABB-drops-after-poor-Q2-results/3207856960


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14:20 Investors exit ABB as parent will not hike open offer priceJul 08, 201010:05 ABB to announce Q2 resultsJun 21, 201014:43 Students win scholarships from the ABB Jurgen Dormann Foundation

May 17, 201016:06 ABB leads gainers in 'A' group

09:54 Parent's open offer at premium sends ABB soaring

Technical Analysis of ABB

The methods used to analyze securities and make investment decisions fall into two

very broad categories: fundamental analysis and technical analysis. Fundamental analysis

involves analyzing the characteristics of a company in order to estimate its value. Technical

analysis takes a completely different approach; it doesn't care one bit about the "value" of a

company or a commodity. Technicians (sometimes called chartists) are only interested in the

price movements in the market.

Despite all the fancy and exotic tools it employs, technical analysis really just studies

supply and demand in a market in an attempt to determine what direction, or trend, will

continue in the future. In other words, technical analysis attempts to understand the emotions

in the market by studying the market itself, as opposed to its components. If you understand

the benefits and limitations of technical analysis, it can give you a new set of tools or skillsthat will enable you to be a better trader or investor.
http://www.indiainfoline.com/Markets/News/Investors-exit-ABB-as-parent-will-not-hike-open-offer-price/3181119634http://www.indiainfoline.com/Markets/News/ABB-to-announce-Q2-results/3164212436http://www.indiainfoline.com/Markets/News/Students-win-scholarships-from-the-ABB-Jurgen-Dormann-Foundation/3140601464http://www.indiainfoline.com/Markets/News/ABB-leads-gainers-in-A-group/3074963584http://www.indiainfoline.com/Markets/News/Parents-open-offer-at-premium-sends-ABB-soaring/3073065996http://www.investopedia.com/terms/f/fundamentalanalysis.asphttp://www.investopedia.com/terms/t/technicalanalysis.asphttp://www.investopedia.com/terms/c/chartist.asphttp://www.investopedia.com/terms/s/supply.asphttp://www.investopedia.com/terms/d/demand.asphttp://www.investopedia.com/terms/t/trend.asphttp://www.indiainfoline.com/Markets/News/Investors-exit-ABB-as-parent-will-not-hike-open-offer-price/3181119634http://www.indiainfoline.com/Markets/News/ABB-to-announce-Q2-results/3164212436http://www.indiainfoline.com/Markets/News/Students-win-scholarships-from-the-ABB-Jurgen-Dormann-Foundation/3140601464http://www.indiainfoline.com/Markets/News/ABB-leads-gainers-in-A-group/3074963584http://www.indiainfoline.com/Markets/News/Parents-open-offer-at-premium-sends-ABB-soaring/3073065996http://www.investopedia.com/terms/f/fundamentalanalysis.asphttp://www.investopedia.com/terms/t/technicalanalysis.asphttp://www.investopedia.com/terms/c/chartist.asphttp://www.investopedia.com/terms/s/supply.asphttp://www.investopedia.com/terms/d/demand.asphttp://www.investopedia.com/terms/t/trend.asp


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In simple words it is a process of identifying trend reversals at an earlier stage to

formulate the buying and selling strategy. With the help of several indicators they analyze the

relationship between price & volume and supply & demand for the overall market and the

individual stock. Volume is favorable in the upswing i.e. the number of shares traded is

greater than before and on the downside the number of shares traded dwindles. If it is other

way round, trend reversals can be expected.

Performance of ABB Ltd. in terms of appreciation

PeriodOne

Week

Two

Week

OneMont

h

ThreeMont

h

Six

Month

One

Year

Period Old Price 864.2 783.3760.3

5873.3

5827.6

5780.3

Price Gain 43.85124.7

5147.7 34.7 80.4

127.75

Gain in % 5.07 15.93 19.43 3.97 9.71 16.37

Stock price of ABB over a period of oneyear

Period MovingAverage

PriceChange

PercentChange

AverageVolume


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5-Day 869.64 34.85 4.12% 151,130

20-Day 808.997 108.2 14.01% 140,382

50-Day 805.469 10.15 1.17% 244,539

100-Day 820.811 184.7 26.55% 262,719

200-Day 813.015 145 19.72% 288,001Year to

Date818.389 113.25 14.76% 289,962

PeriodRaw

StochasticStochastic

%KStochastic

%DAverage

True Range

9-Day 98.01% 91.78% 85.97% 18.458

14-Day 98.06% 93.02% 89.10% 18.378

20-Day 98.40% 93.99% 89.64% 18.546

PeriodRelativeStrength

Percent RHistoricVolatility

MACDOscillator

9-Day 85.92% 1.99% 16.44% 31.3

14-Day 78.33% 1.94% 17.49% 52.935

20-Day 71.21% 1.60% 18.77% 66.719

50-Day 58.10% 3.09% 23.50% 70.248

100-Day 54.32% 8.51% 38.05% 54.906

Simple Moving Average

Simple moving average for the stock ABB for 5 days, 10 days and 50 days


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Exponential Moving Average EMA

A type of moving average that is similar to a simple moving average, except that more

weight is given to the latest data. The exponential moving average is also known as"exponentially weighted moving average"

This is the Exponential moving average of ABB for 10 days, 20 days and 30 days.

Overall technical Analysis Chart


21/43

When we analyze all the charts we can see that the prices of the stock are moving up

in the long run there is a good amount of increase in the prices of ABBs share. Its simple


22/43

moving average as well as the Exponential moving averages is showing a positive trend. If

we look at the stochastic also it is showing the stocks strength. From the technical analysis as

well as from the fundamental analysis this stock is strong. One can invest in this stock as per

both the analysis. All major analysts are also giving the same view point that ABBs stock is

having a potential to grow in future.

EFFICIENT MARKET HYPOTHESIS (EMH)

The efficient-market hypothesis (EMH) asserts that financial markets are

"informationally efficient". That is, one cannot consistently achieve returns in excess of

average market returns on a risk-adjusted basis, given the information publicly available at

the time the investment is made.

There are three major versions of the hypothesis: "weak", "semi-strong", and "strong".

Weak EMH claims that prices on traded assets (e.g., stocks, bonds, or property) already

reflect all past publicly available information. Semi-strong EMH claims both that prices

reflect all publicly available information and that prices instantly change to reflect new public

information. Strong EMH additionally claims that prices instantly reflect even hidden or

"insider" information. There is evidence for and against the weak and semi-strong EMHs,

while there is powerful evidence against strong EMH.

The Efficient Market Hypothesis (EMH) has been around for over 50 years. The

EMH logic is, given an efficient market, where participants have equal access to information

and equal ease in trading, stock prices amend randomly. Any price-sensitive information is

received instantly by many traders, who promptly act upon it. Their interactions tend to

quickly push prices close to fair value. So it is very hard in such an efficient market for any

given player to consistently log returns higher than the average.

Company Analysis Crompton Greaves

(Satwant A 17)
http://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Risk-weighted_assethttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Bondshttp://en.wikipedia.org/wiki/Informationhttp://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Risk-weighted_assethttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Stockshttp://en.wikipedia.org/wiki/Bondshttp://en.wikipedia.org/wiki/Information


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As one of the world`s leading engineering corporations, CG provides end-to-end

solutions, helping its customers use electrical power effectively and increase industrial

productivity with sustainability. CG was established in 1937 in India; and, since then the

Company has been a pioneer and has retained its leadership position in the management and

application of electrical energy.

Our unique and diverse portfolio ranges from transformers, switchgear, circuit

breakers, network protection & control gear, project engineering, HT and LT motors, drives,

lighting, fans, pumps and consumer appliances and turnkey solutions in all these areas;

thus enhancing the many aspects of industrial and personal life. This portfolio has

been structured into 3 SBUs - Power Systems, Industrial Systems and Consumer Products.

For details please refer to the panel on the right.

Since 2005, CG has embarked upon an ambitious globalization strategy, growing both

organically and inorganically, drawing into its fold leading international companies such as

Pauwels, Ganz, Microsol, Sonomatra, MSE and PTS. Consequent to this globalisation, CG

now enjoys manufacturing bases in Belgium, Canada, Hungary, Indonesia, Ireland, France,

UK and US, in addition to more than twenty manufacturing locations in India, employing

more than 8000 employees worldwide with diverse nationalities and cultures. A worldwide

marketing network of more than 150 representatives spans the globe, offering the entire range

of CGs products, solutions and services.


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CG has been aggressively investing in R&D, product certifications, product quality,

productivity enhancement and operational excellence. CG`s Global R&D centre, located in

India, has been recognised for its innovation and received the prestigious "National Award

for the Best R&D Efforts" for its outstanding achievements in the Electrical Engineering

Sector in 2008. CG`s R&D strategy aligns with the Company`s Global Vision, and focuses on

creating platform technologies, shrinking product development cycle time and enhancing

CGs Intellectual Property capital.

To unify our global focus, all CG facilities across the world have taken actions to

ensure that customers receive consistent "One World Quality", for all CG products and

solutions in all parts of the world.

Thanks to its well structured and validated business model, CG is well positioned to

provide its customers with technology-driven, value-added solutions, leveraging a broad

product portfolio on the one hand, and enhancing the entire value-chain quality, delivery, and

services on the other hand.

Crompton Greaves, an Avantha Group company, is a leading player engaged in designing,

manufacturing and marketing high-technology electrical products and services related to

power generation, transmission & distribution and execution of turnkey projects. It has the

largest market share in 765 kv. Transformers and is among the top 10 transformer

manufacturers in the world. Crompton Greaves also manufactures consumer durable products

like fans, lighting, domestic appliances etc. The companys operations have been structured

into 3 SBUs (Strategic Business Units) viz. Power Systems, Industrial Systems and

Consumer Products.


25/43

The Company has 22 manufacturing divisions spread across the Country. It is a leading

supplier to the Indian market. It also exports its products to more than 60 countries

worldwide, which include USA, UK, EU, Australia and New Zealand etc. More than 10 % of

the companys consolidated revenues come from exports.

Good growth rates in all parameters:

The company has clocked a good CAGR of 21.2% in Net Sales over the last 6 years mainly

due to 19% volume growth; it has shown consistent demand for its products and services. A

strong re-investment has helped the company clock a 6 year EPS CAGR of 39.2%. Its BVPS

has registered a robust CAGR of 34.8% over the same period.

Higher profitability fuelled by operating profit margin improvement and reduction in interest

cost: The Companys Earnings Per Share (EPS) growth (39.2%) is higher as compared to the

Sales growth (21.2%).

Continuous improvement in the operating profit margins:


26/43

This is a result of high growth in Other Income (34.4% CAGR) and fluctuating Stock

Adjustments. This along with a comparatively lower growth of only 19.75% in total

expenditure has helped the company register higher operating profit growth of 38.6% and

consequently led to growth in EPS.

Though the tax and extra-ordinary income have increased significantly in the last 6 years

(93% & 56% respectively), the reduction in debt from Rs. 314.5 Cr. in FY05 to Rs. 26.8 Cr.

in FY10. As a result, the interest cost has decreased significantly and has helped the company

increase its Net Profit after extra-ordinary item by 39%.

ROE & ROIC:

The company has maintained good ROE and ROIC averages of 36.4% and 32.1%

respectively. This has been enhanced due to the good growth in profits and lower debt levels.Crompton Greaves had debt of only Rs. 27 Cr. on its books, hence leading to an almost nil

Debt-to- Net profit ratio.

Crompton Greaves has performed well in all its parameters, especially over the last 6 years..

This forms a strong base for its future. Hence, the 10 YEAR X-RAY of Crompton Greaves is

Green (Very Good).

Good performance on the back of robust growth inconsumer products, improvement in power systems and

overseas subsidiaries:

Slowdown in the global economy has shifted focus of many players including

multinational companies such as ABB, Siemens and Areva T&D to the domestic T&D

market leading to price competition. Also, active participation by Korean and Chinese players

for orders placed by Power Grid Corporation (PGCIL) (one of the largest transmission

utilities in the world) has resulted in severe pricing pressure.


27/43

On the back of strong domestic market the consolidated segment revenue of consumer

products was higher by 24%. The power systems business of the company which was

affected by delivery related issues in the first quarter ended June 2010 is back on track with

both standalone as well as overseas entities registering steady single digit growth. Also, the

companys overseas subsidiaries which were posing a problem till some time back have

started registering positive growth. The company has faced pricing pressure in the last year

(Realization for transformers fell by 11%). This pressure due to competition may affect

margins but the company has maintained stable margins and expects the same to continue in

the coming quarters

Thus, Crompton Greaves has registered a decent performance at a time when

competitors like ABB have performed dismally

Expansions by Crompton GreavesAmalgamation with Brook Crompton Greaves:

Crompton Greaves has recently approved the scheme of amalgamation with its wholly owned

subsidiary Brook Crompton Greaves. This has been done with the aim to reduce overall

cost of the company

Company to spend Rs. 400 Cr. on capex:


28/43

The company will be spending about Rs 400 Cr. mostly on technology and quality up-

gradation. The company has decided not to go for capacity expansion as it already has

sufficient capacity and it also witnessed a 7% fall in its overseas operation in FY 2010.

Recent Acquisitions and JVs aimed at becoming a full solutions provider

These acquisitions and JVs are expected to enhance the companys technologicalabilities and drive its growth in the short-term.

Yes, the company is facing competition from companies like ABB, Areva T & D etc.Though active participation by China and Korea players is a threat, the company managed to

bag 1/3 of Power Grids orders. It is further expecting the orders from Power Grid orders todrive revenue growth in the short-term.

The company is expecting to register a 15% growth in revenues for FY11 on the backof these orders and, strong growth in consumer durables. Thus, it is seems that the companyis well-placed to tackle competition in the future.

Future Opportunities in Power, Industrial and Consumer

Durables segment:

All these 3 segments are poised for growth in future:

a) Power: With the increasing focus of the Government on power and the increased spending

(over 8 Lakh Cr. by FY12) the demand for transformers, switchgears is bound to increase in

future. According to industry reports, globally the demand for power is expected to grow by

8-10%.

b) Industrial segment: Growing demand for capital goods will serve well for the companys

future growth in this segment.

c) Consumer Durables: Rise in consumption expenditure, growing % of working women,

and a shift from non-branded to branded products coupled with a shift from joint to nuclear

households is expected to drive the demand for its consumer durables and appliances


29/43

segment.

Thus, CG has successfully established a strong position in all the 3 segments and is expected

to take advantage of future opportunities available.

a) In the consumer durables segment, Crompton Greaves faces competition from the

unorganized segment (~50%) of the appliances segment.

Where competition with international majors ABB and Areva are a concern for the long-term

too, Crompton Greaves seems to be in a position to tackle this competition due to its strong

acquisitions aimed at becoming a full solutions provider in the global market, its revenue mix

and good growth expected in the power, industrial and consumer durables segment.

Crompton Greaves is a leading player in the electrical engineering space. Though thecompanys major concern right now is the growing competition, it is well-armed to tackle

competition due to its strong fundamental past, strategic acquisitions and business mix

Technical Analysis

We have seen that from the fundamental point of view the company is very strong and

it is completely visible in the trend of the share prices of Crompton Greaves. I have taken the

price movement of two years that is from November 2008 to November 2010 and we can see

that the price of the stock is continuously rising.


30/43

If we compare the prices of Crompton Greaves with Sensex we can see

that the movement in Crompton greaves in much better than the movement in

Sensex. The performance of Crompton greaves share is far away than the

Sensex. So we can say that the stock is performing really well.

Company Analysis of L&T (Keshav Gupta)

Fundamental analysis is the study of economic factors that influence foreign exchange rates

in the hope of trying to forecast future rates.

Economic Analysis:

Countries with higher interest rates tend to draw more money from the rest of the world,

when investors seek to gain a higher return by investing in the country. One such example is

the so-called carry trade, which involves borrowing currency from a country with low interest

rates to invest it in a country with higher rates. A good current example is the Japanese yen-

New Zealand dollar carry trade. Japan has a very low interest rate of 0.50% and New Zealand

presently has the highest interest rate among developed countries8%

Inflation is the result of an increase in the supply of a currency, which thereby reduces

demand, but, as with the other factors, it must be compared to other currencies. It is the rate


31/43

of growth of supply of 1 currency over the rate of growth of the supply of another that will

determine the exchange rate between the 2 currencies.

Another factor that will affect supply and demand for a currency, especially for developing

countries, is the country's political stability. There will be little demand for the currency of an

unstable country, since few people will want to invest where there is a great deal of risk,

which reduces the demand for the currency, and, therefore, its rate.

L & T has performed robustly in all its parameters over the last 10 years. Its impressive

fundamentals in the past form a strong base for its future.

L&T has clocked an impressive CAGR of 67% in its EPS which has been possible due to the

strong investment back into the business which is evident from its high BVPS CAGR of

almost 50%. Also, it has improved its margins over the years from a stagnant average of 10-

11% from FY 03 to FY 06 to 15% in the last 4 years. In fact in 2010 the companys operating

margin has increased to 19%.

Its Sales have registered a CAGR of 19.6% over the last 10 years, indicating a good order

inflow over the years. Over the past 5 years the CAGR of order inflows has been 33%. This

has helped the company register an impressive 67.2% CAGR over the last 10 years.

L&TS SHORT TERM OUTLOOK:


32/43

Healthy Order-Book :

The company has been witnessing an increase in order inflows since the past few months.

Order inflow for the quarter ended June 2010 was Rs. 15626 Cr., up 63% on y-o-y basis. The

company expects increased bidding activities in the next few months and expect this

momentum to continue. As of June10 the company has a healthy order book of Rs. 100239

Cr. to be completed over the next 2-3 years. Recently (24th Aug), the company bagged 2

projects worth Rs. 1200 Cr. from ONGC to set up additional processing units at its plants

Hence, this is expected to ensure good revenue growth in the coming quarters.


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Capacity Expansion Plans:

The company is planning capacity expansions for the year FY11 in order to take advantage of

the demand in future.

Few of these are:

Improvement at their Hazira & Coimbatore manufacturing facilities to improve on execution

time

A new manufacturing facility at Baroda for catering to electrical products market.

New Shipyard at Tamil Nadu for large defense ships

The company has indicated an approx cost of Rs.2000 Cr. for these plans. Where all of these

are expected to cater to future demand and facilitate growth, it also means increased costs.

Why I have chosen Larson & Tourbo

Growing Sales

Companies are judged by their sales and earnings growth rates than on the absolute value

of their sales and earnings.

Year 2010/03 2009/03 2008/03 2007/03 2006/03

Sales 37,101.32 33,856.54 24,946.11 17,645.29 14,776.95Var % 9.58 35.72 41.38 19.41

Profit After Tax 4,375.52 3,481.66 2,173.42 1,403.02 1,012.14

Var % 25.67 60.19 54.91 38.62

Profitability

Investors prefer companies that increase profit margins -- the percentage of sales that

they keep -- every year. This is accomplished either by lowering expenses or raising

prices.

Year 2010/03 2009/03 2008/03 2007/03 2006/03

Profit After Tax 4,375.52 3,481.66 2,173.42 1,403.02 1,012.14

Var % 25.67 60.19 54.91 38.62

`

Year 2010/03 2009/03 2008/03 2007/03 2006/03

OPM (%) 13.00 11.24 11.17 9.76 6.43


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Var % 15.66 0.63 14.45 51.79

There is incessant growth in sales of company.

Profits have increased by 25.67% as compared to previous year. Means in slowdown

also company is growing.

Now by comparing the performance of L&T with its peers we can analyze that fundamentals

of L&T are strong.

Future Projects of company

Larsen & Toubro (L&T) has announced that its construction division has secured two

major projects besides add on orders worth Rs 1017 crore. L&T Buildings and Factories

Operating Company will be building IT campus, residential towers and factory buildings

under the new orders from clients such as Cognizant Technology Solutions India Pvt and

IREO Private Limited.

Cognizant has handed over a Rs 566 crore worth Design & Build order to L&T for

construction of their IT campus development at Siruseri,Chennai. For IREO Private Limited,

L&T will be constructing the 'The Grand Arch', which is a multistoried residential apartments

at Gurgaon, Haryana, in the Rs 280 crore project.

It has further secured orders worth Rs 171 Crore for the construction of factory

building and other add on works from existing jobs from various esteemed clients, L&T said

in a release on Wednesday, Mar 31.These orders further enhance the order book of the

company which has already secured major design & build contracts in Airports, IT Parks and

commercial space, it added.

L&T Power Development Company, a subsidiary of Larsen & Toubro (L&T), plans

to set up coal-based power projects worth 5,000 MW by 2015.

The plan is to commission 5,000 MW of coal-based power projects by 2015. By then we

will have achieved financial closure for another 5,000 MW,'' he said adding that the company

had planned its investments in the sector on that basis. Our intention now is to focus on coal-

based projects but we will consider gas and LNG based projects in future.''

Key Financial Ratios

2010/03 2009/03 2008/03 2007/03 2006/03

Per ShareEPS 72.66 59.45 74.35 49.53 73.67
http://news.oneindia.in/2010/03/31/l-t-construction-div-bags-orders-worth-rs-1017-cr.htmlhttp://news.oneindia.in/2010/03/31/l-t-construction-div-bags-orders-worth-rs-1017-cr.htmlhttp://news.oneindia.in/2010/03/31/l-t-construction-div-bags-orders-worth-rs-1017-cr.htmlhttp://news.oneindia.in/2010/03/31/l-t-construction-div-bags-orders-worth-rs-1017-cr.html


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CEPS 79.54 64.67 81.59 55.18 81.47

Book Value 303.66 212.32 325.98 202.65 335.61

Dividend/Share 12.50 10.50 17.00 13.00 22.00

Operating Profit / Share 79.34 70.72 110.81 71.77 92.92

Net Operating Income / Share 616.10 578.06 853.36 622.91 1,075.58Free Reserves / Share 0.00 205.21 319.09 197.15 324.46

Profitability Ratios

OPM 12.87 12.23 12.98 11.52 8.63

GPM 11.84 11.39 12.19 10.61 7.91

NPM 11.18 10.06 8.54 7.74 6.69

RONW 23.18 21.21 21.21 24.39 17.90

Liquidity ratiosDebt/Equity 0.37 0.52 0.37 0.36 0.31

Current Ratio 1.23 1.30 1.18 1.26 1.36

Quick Ratio 1.15 0.96 0.86 0.93 1.03

Interest Cover 13.46 6.35 7.41 7.52 5.03

Turn Over Ratios

Sales/Total Assets 7.36 6.09 9.71 7.04 5.80

Sales/Fixed Assets 5.83 6.55 6.89 8.03 9.38

Sales/Current Assets 1.39 1.42 1.51 1.46 1.53

If we analyze the ratios of L&T then we find that:

Current ratio of the company is satisfactory company is able to meet its liabilities.

Quick has also increased in 2010 Which shows the good financial health of company.

There is rapid change in interest coverage ratio. Though debt equity ratio has

decreased means company has to pay less interest. And also in 2010 company is able

to cover the interest from profits 2times as compared to the previous year.

Profit Estimates

Year1 Year131 Mar 2011 31 Mar 2012

Number of Analysts 34 33Consensus (Rs. Cr.) 3,934.42 5,105.30Low Estimate (Rs. Cr.) 3,353.00 4,146.80

High Estimate (Rs. Cr.) 4,775.00 6,331.00EPS Growth % -7.20 29.76


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History of Profit Estimates

Last 2 Year 31 Mar 2009 31 Mar 2010Estimate (Rs. Cr.) 2,078.96 3,361.79

Actual (Rs. Cr.) 2,709.20 4,239.80Difference (Rs. Cr.) 630.25 878.01

Consensus Trend of Profit Estimates

31 Mar 2011 31 Mar 2012Current (Rs. Cr.) 3,934.42 5,105.307 days ago (Rs. Cr.) 3,934.42 5,105.3030 days ago (Rs. Cr.) 3,995.45 5,091.4060 days ago (Rs. Cr.) 5,105.30 5,084.9590 days ago (Rs. Cr.) 4,037.81 5,094.66

1 year ago (Rs. Cr.) 3,856.13 5,366.44

Sector / Country Comparison of Profit Estimates

If we see the single day movement of stock priceOn 23

sep,2010 there was a news that

L&T and Befula Investments (South Africa) to Collaborate on Power Transmission &

Distribution Opportunities in South Africa

Because of this news there was positive change in stock of rs. 3.40.

1998.10

Change:3.40(0.17%)Volume:205,562

Open:1,999.90Prv. Close:1,994.70

Sep 23,2010 10:53 Price 1987.00 Volume 62934
http://economictimes.indiatimes.com/cmpnewsdisp.cms?companyid=13447&newsid=442079http://economictimes.indiatimes.com/cmpnewsdisp.cms?companyid=13447&newsid=442079http://economictimes.indiatimes.com/cmpnewsdisp.cms?companyid=13447&newsid=442079http://economictimes.indiatimes.com/cmpnewsdisp.cms?companyid=13447&newsid=442079


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Impact of news on stock price:

14th September, 10(1920.20)Add Larsen and Toubro: IIFL

14th September, 10(1920.20)Buy Larsen and Toubro; target of Rs 1965: IIFL

7th September, 10(1876.25)Buy Larsen and Toubro on dips: Gujral

20th August, 10(1868.80)Sensex lacklustre; Ranbaxy, BPCL, Cipla, DLF, Larsen shine

29th July, 10(1817.95)Motilal Oswal neutral on Larsen and Toubro

15th July, 10(1873.85)Angel Broking: neutral on Larsen and Toubro

30th June, 10(1808.95)Hold Larsen and Toubro: Gorakshakar

17th June, 10(1777.00)Larsen and Toubro hits 52week high

Competitor comparision - Larsen & Toubro Ltd.
http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=484467http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=484364http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=483239http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=480000http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=480000http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=473639http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=470179http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=467137http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=467137http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=464698http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=484467http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=484364http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=483239http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=480000http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=473639http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=470179http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=467137http://www.moneycontrol.com/india/newsarticle/stocksnews.php?autono=464698


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ompany Current PriceChange

(%Chg)

TODAY

Low / High

52 WEEK

Low / HighVolume EP

Larsen

&

Toubro

Ltd.

1,99

8.10

3.40

(0.1

7%)

1,96

8.00

/

2,01

3.85

1,37

1.00

/

2,07

4.60

205

102

27.5

4

72.5

4

3M

India

Ltd.

3,60

0.00

-

12.6

0 (-

0.35

%)

3,55

1.00

/

3,60

5.00

1,60

5.00

/

3,99

5.00

56843.6

8

82.4

1

Alchemi

st Ltd.

220.

00

-

3.60

(-

1.61

%)

219.

00 /

224.

30

103.

00 /

239.

90

984

31

15.8

5

13.8

8

Andhra

Sugars

Ltd.

129.

90

-

2.45

(-

1.85

%)

128.

50 /

132.

10

105.

60 /

145.

00

581

45.27

24.6

3

Andrew

Yule &

Compan

y Ltd.

40.3

0

0.55

(1.3

8%)

39.5

0 /

41.6

5

31.5

0 /

99.7

0

658

622

15.8

42.54

Apex

Intertec

h Ltd.

0.00

-

6.50

(-

100.

00%

)

0.00

/

0.00

0.00

/

0.00

0 0.00-

0.57

JIK

Industri

es Ltd.

14.9

5

0.35

(2.4

0%)

14.5

0 /

15.1

0

12.6

0 /

25.8

5

239

01

14.8

11.01
http://economictimes.indiatimes.com/stocks.cms?companyid=13447http://economictimes.indiatimes.com/stocks.cms?companyid=13447http://economictimes.indiatimes.com/stocks.cms?companyid=13447http://economictimes.indiatimes.com/stocks.cms?companyid=13447http://economictimes.indiatimes.com/stocks.cms?companyid=12690http://economictimes.indiatimes.com/stocks.cms?companyid=12690http://economictimes.indiatimes.com/stocks.cms?companyid=12690http://economictimes.indiatimes.com/stocks.cms?companyid=6807http://economictimes.indiatimes.com/stocks.cms?companyid=6807http://economictimes.indiatimes.com/stocks.cms?companyid=12612http://economictimes.indiatimes.com/stocks.cms?companyid=12612http://economictimes.indiatimes.com/stocks.cms?companyid=12612http://economictimes.indiatimes.com/stocks.cms?companyid=12526http://economictimes.indiatimes.com/stocks.cms?companyid=12526http://economictimes.indiatimes.com/stocks.cms?companyid=12526http://economictimes.indiatimes.com/stocks.cms?companyid=12526http://economictimes.indiatimes.com/stocks.cms?companyid=10445http://economictimes.indiatimes.com/stocks.cms?companyid=10445http://economictimes.indiatimes.com/stocks.cms?companyid=10445http://economictimes.indiatimes.com/stocks.cms?companyid=6985http://economictimes.indiatimes.com/stocks.cms?companyid=6985http://economictimes.indiatimes.com/stocks.cms?companyid=6985http://economictimes.indiatimes.com/stocks.cms?companyid=13447http://economictimes.indiatimes.com/stocks.cms?companyid=13447http://economictimes.indiatimes.com/stocks.cms?companyid=13447http://economictimes.indiatimes.com/stocks.cms?companyid=12690http://economictimes.indiatimes.com/stocks.cms?companyid=12690http://economictimes.indiatimes.com/stocks.cms?companyid=12690http://economictimes.indiatimes.com/stocks.cms?companyid=6807http://economictimes.indiatimes.com/stocks.cms?companyid=6807http://economictimes.indiatimes.com/stocks.cms?companyid=12612http://economictimes.indiatimes.com/stocks.cms?companyid=12612http://economictimes.indiatimes.com/stocks.cms?companyid=12612http://economictimes.indiatimes.com/stocks.cms?companyid=12526http://economictimes.indiatimes.com/stocks.cms?companyid=12526http://economictimes.indiatimes.com/stocks.cms?companyid=12526http://economictimes.indiatimes.com/stocks.cms?companyid=10445http://economictimes.indiatimes.com/stocks.cms?companyid=10445http://economictimes.indiatimes.com/stocks.cms?companyid=10445http://economictimes.indiatimes.com/stocks.cms?companyid=6985http://economictimes.indiatimes.com/stocks.cms?companyid=6985http://economictimes.indiatimes.com/stocks.cms?companyid=6985


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From the above table we can see that there is positive change or increase in price of Larsen

and turbo ltd. The stock prices of other competitor companies are showing on a decreasing

trend.

STOCHASTIC:

A technical momentum indicator that compares a security's closing price to its price range

over a given time period. The oscillator's sensitivity to market movements can be reduced by

adjusting the time period or by taking a moving average of the result. The theory behind this

indicator is that in an upward-trending market, prices tend to close near their high, and during

a downward-trending market, prices tend to close near their low. Transaction signals occur

when the %K crosses through a three-period moving average called the "%D".


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This graph is based on monthly stock price of last 3 years. Price pattern is showing rising

and falling trend. In first year there is falling wedge . The boundary lines are sloping down

and in next year there is rising wedge. There is runway gap because of a rapid uptrend and

downtrend. By analyzing the graph we can say that stock is at his maturity stage now either it

will take flat position or start declining.

Right-angled Broadning Triangle formation is clearly visible in the daily charts, marked with

yellow dotted lines. Volumes are also expanding along the way, supporting the pattern. But

past one month volumes are declining, which indicates some weakness in the up move.

Now,Cup and Handle Pattern has formed exactly below the resistance line of the Righ-

angled Broadning Triangle, marked as thick Red line. It is wise to wait until this resistance

line is broken convincingly to take up the long trades even for Cup and Handle. Once the

resistance line is broken convincingly, the stock could be bought and held for longer term as

it has the potential to reach upto Rs.2200.
http://www.chartreader.co.in/2009/06/cup-and-handle-in-dlfl-and-nifty.htmlhttp://www.chartreader.co.in/2009/06/cup-and-handle-in-dlfl-and-nifty.htmlhttp://www.chartreader.co.in/2009/06/cup-and-handle-in-dlfl-and-nifty.html


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Markets tend to move in both the directions based on the relative compatibility between the

bears and bulls. After moving in certain trend, it starts moving in sideways direction to catch

a breath, for example, consolidations etc. When markets are in the consolidation mode,trading ranges are formed.

Initially a trading range is formed as the supply and demand are in certain equilibrium. Where

high of the range is treated as supply line and the low of the range is defined as demand line.

Now the trading opportunities are formed in certain criteria specifically like price tries to

move above the supply line or below the demand line and unable to sustain. They can provide

a good trading opportunity as there is a strong probability of returning into the opposite side

of the Accumulation/Distributionranges.

In Up-Thrust, prices break above the resistance line, and failed to move further up. One can

go short in the next confirmation bar, by keeping the high as the stop loss. Price target would

be the retest of the lower or support line of the trading range. This kind of false breakout

above resistance range is called up-trust, and the bearish candlestick indicator is an invoking

opportunity to enter the trade. Opposite of this up-trust is spring where prices give false

breakdown from the support trend line and bullish candlestick indicator like hammer or few

times a bullish engulfing may also confirm the trading opportunity.
http://2.bp.blogspot.com/_hXWQvxbbujo/Sjhi9-zcBrI/AAAAAAAAAbo/zOSqWknMZXA/s1600-h/Nifty-Wyckoff-2.png


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References

www.topstockresearch.com

http://stocks.about.com/od/evaluatingstocks/a/Fundanatools1.htm

http://www.economywatch.com/

http://www.tradingeconomics.com

http://www.investopedia.com/university

http://www.moneycontrol.com/stocks/company_info/tech_charting.php?sc_did=CG
http://www.topstockresearch.com/http://www.economywatch.com/http://www.tradingeconomics.com/http://www.topstockresearch.com/http://www.economywatch.com/http://www.tradingeconomics.com/

Fundamental & Technichal Anlysis

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