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EQUITIES-PORTFOLIO MANAGEMENT

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A PROJECT REPORT

On

EQUITIES PORTFOLIO MANAGEMENT

At

EDELWEISS BROKING LIMITED

Submitted by

NARENDRA KUMAR.K

In partial fulfillment for the award of the degree

Of

MASTERS IN BUSINESS ADMINISTRATION

2010-2012

Submitted to

Assistant Prof. (Ms.) Anjani (Functional Guide)

GITAM INSTITUTE OF MANAGEMENT

GITAM UNIVERSITY(Established U/S 3 of UGC Act, 1956)

VISAKHAPATNAM


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ACKNOWLEDGEMENT

It is my pleasure to acknowledge and express my gratitude to all those who helped me

throughout in the successful completion of this project.

I am very thankful to Sri. Mr.P.Srinivas Rao, Team Leader ,Edelweiss Broking Limited

Company, Visakhapatnam , for extending support throughout the project.

I would like to express a special word of thanks to Edelweiss Broking limited company for

providing all required information and the facilities for the successful completion of my project.

I wish to express my gratitude to Prof K Siva Rama Krishna, Dean & Principal, GITAM Institute

of Management, GITAM University, Visakhapatnam, for giving me this valuable opportunity to

experience the work culture in an organization.

I am grateful to M/s Anjani Devi (Assistant professor) , GITAM Institute of Management,

GITAM University, Visakhapatnam for his/her continuous guidance to accomplish this project

work, successfully.

NARENDRA KUMAR.K


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DECLARATION

I hereby declare that this summer internship project report entitled with

Equities- Portfolio Management submitted in the partial fulfillment of the requirements of

Masters of Business Administration, GITAM Institute of Management, Visakhapatnam, Andhra

Pradesh is bonified record of the project work carried out by me during the period from 2-may,

2011 to 15- June, 2011 under the guidance of Mr. P.Srinivasa Rao (Team Leader) at

Edelweiss Broking Limited company. The report is thoroughly for education purpose only and I

also assure that no part of this work has been presented either in for any degree or similar awards

from any other Universities.

Date:

Visakhapatnam.

NARENDRA KUMAR.K (M.B.A)

GITAM INSTITUTE OF MANAGEMENT


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1. EXECUTIVE SUMMARY2. INTRODUCTION of PORTFOLIO MANGEMENT SERVICES

(PMS)

a.

PORTFOLIO CONSTRUCTIONb. Process of PORTFOLIO CONSTRUCTION

3. METHODOLOGY OF THE PROJECT4. EDELWEISS BROKING LIMITED

a. COMPANY PROFILEb. RESEARCH CENTERc. PMS in EDELWEISS BROKING LIMITED

5. PORTFOLIO MANGEMNT SERVICES (PMS)a. PORTFOLIO DIVERSIFICATIONb. TECHNIQUES OF PORTFOLIO MANAGEMENT

6. ANALYSIS & FINDINGSa. SIMPLE EQUITY PORTFOLIO OPTIMIZATIONb. MARKOWITZ PORTFOLIO RISK RETURNMODEL

7. FUNDAMENTAL ANALYSIS8. TECHNICAL ANALYSIS ON EQUITIES

a. ACC LIMITEDb. EVERONN EDUCATIONc. ORACLE FINANCIAL SERVICES SOFTWAREd. CIPLA LIMITEDe. SUN PHARMAf. TATA MOTORSg. ANDHRA BANKh. LARSEN & TOURBOi. HAWKINS COOKERSj. BAJAJ ELECTRICALSk. ZYDUS WELLNESS

9. GRAPHICAL REPRESENTATION10.LIMITATIONS & FINDINGSOF PROJECT11.SUGGESTION12.CONCLUSION13.BIBLIOGRAPHY

Websites URLs Books Magazine

19.APPENDIX

1

2-8

8-10

11-14

15-20

21-28

29

30-44

45-46

47

48

49

50

51-54


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PORTFOLIO MANGEMNT SERVICES (PMS)

Portfolio (Finance) means a collection of investments held by an

institution or a private individual. Holding a portfolio is often part of an investment and risk-

limiting strategy called diversification. Portfolios which are aimed at taking high risks these

are called concentrated portfolios.

Investment management is the professional management of various

securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified investment

goals for the benefit of the investors. Investors may be institutions or private investors.

Asset management is often used to refer to the investment management

of collective investments, whilst the more generic fund management may refer to all forms of

institutional investment as well as for private investors. Investment managers who specialize in

advisory or discretionary management on behalf of private investors may often refer to their

services as wealth management or portfolio management often within the context of so-called

"private banking".

The provision of 'investment management services' includes elements of

financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring

of investments. Investments are often meant to include projects, brands, patents and many things

other than stocks and bonds.

Need of PMSThe PMS gives investors periodically review their asset allocation across

different assets as the portfolio can get skewed over a period of time. This can be largely due to

appreciation / depreciation in the value of the investments. As the financial goals are diverse, the

investment choices also need to be different to meet those needs. No single investment is likely

to meet all the needs, so one should keep some money in bank deposits and liquid funds to meet

any urgent need for cash and keep the balance in other schemes that would maximize the return

and minimize the risk.


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Objective of PMS

1. Safety of Fund: -The investment should be preserved, not be lost, and should remain in thereturnable position in cash or kind.

2. Marketability: - The investment made in securities should be listed and traded in stockexchange so as to avoid difficulty in their cashed.

3. Liquidity: -The portfolio must consist of such securities, which could be cashed without anydifficulty or involvement of time to meet urgentneed for funds.

4. Reasonable return: - The investment should earn a reasonable return to upkeep thedecliningvalue of money and be compatible with opportunity cost ofthe money in terms of current incomein the form of interest ordividend.

5. Appreciation in Capital: -The money invested in portfolio should grow and result intocapitalgains.

6. Tax planning: - Efficient portfolio management is concerned with composite tax planningcovering income tax, capital gain tax, wealth tax and gift tax.

7. Minimize risk: - Risk avoidance and minimization of risk are important objective ofportfoliomanagement. Portfolio managers achieve these objectives byeffective investment planning andperiodical review of market,situation and economic environment affecting the financial market.

PORTFOLIO CONSTRUCTION

The Portfolio Construction of Rational investors wish to maximize the

returns on their funds for a given level of risk. All investments possess varying degrees of risk.Returns come in the form of income, such as interest or dividends, or through growth in capital

values.

Process of PORTFOLIO CONSTRUCTION:

1. Setting objectives:

The first step in building a portfolio is to determine the main objectives of

the fund given the constraints (i.e. tax and liquidity requirements) that may apply. Each investorhas different objectives, time horizons and attitude towards risk.

2. Defining Policy:

A suitable investment policy must be established. The standard procedure is for

the money manager to ask clients to select their preferred mix of assets. Clients are then asked to

specify limits or maximum and minimum amounts they will allow to be invested in the differentassets available. The main asset classes are cash, equities, Gilts/bonds and other debt

instruments, derivatives, property and overseas assets.


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3. Applying portfolio strategy:

There are active and passive strategies. An active strategy involves predicting

trends and changing expectations about the likely future performance of the various asset classesand actively dealing in and out of investments to seek a better performance. A passive strategy

usually involves buying securities to match a preselected market index. Alternatively, a portfoliocan be set up to match the investors choice of tailor-made index. Passive strategies rely ondiversification to reduce risk.

4. Asset selections:

Once the strategy is decided, the fund manager must select individual assets in

which to invest. Usually a systematic procedure known as an investment process is established,

which sets guidelines or criteria for asset selection. Active strategies require that the fund

managers apply analytical skills and judgment for asset selection in order to identify undervaluedassets and to try to generate superior performance.

5. Performance assessments:

The performance of the fund is periodically measured against a pre-agreed

benchmarkperhaps a suitable stock exchange index or against a group of similar portfolios.

The portfolio construction process is continuously iterative, reflecting changes internally and

externally.

Steps to Stock Selection Process:


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Types of Assets

The portfolio structure takes into account a range of factors, including the

investors time horizon, attitude to risk, liquidity requirements, tax position and availability of

investments. The main asset classes are cash, bonds and other fixed income securities, equities,

derivatives, property and overseas assets.

Cash and cash instruments

Cash can be invested over any desired period, to generate interest income, in

a range of highly liquid or easily redeemable instruments, from simple bank deposits, negotiable

certificates of deposits, commercial paper and Treasury bills to money market funds, which

actively manage cash resources across a range of domestic and foreign markets. Cash is normally

held over the short term. Returns on cash are driven by the general demand for funds in an

economy, interest rates, and the expected rate of inflation. A portfolio will normally maintain at

least a small proportion of its funds in cash in order to take advantage of buying opportunities.

Bonds

Bonds are debt instruments on which the issuer (the borrower) agrees to

make interest payments at periodic intervals over the life of the bond this can be for two to

thirty years or, sometimes, in perpetuity. Interest payments can be fixed or variable, the latter

being linked to prevailing levels of interest rates. The bond markets are highly liquid. Corporate

bonds are bonds that are issued by companies to assist investors and to help in the efficient

pricing of bond issues, many bond issues are given ratings by specialist agencies such as

Standard & Poors andMoodys. The highest investment grade is AAA, going all the way down

to D, which is graded as in default.

Future interest rates are driven by the likely demand/ supply of money in

an economy, future inflation rates, political events and interest rates elsewhere in world markets.

Investors with short-term horizons and liquidity requirements may choose to invest in bonds

because of their relatively higher return than cash and their prospects for possible capital

appreciation.

Equities

Equity consists of shares in a company representing the capital originally

provided by shareholders. An ordinary shareholder owns a proportional share of the company

and an ordinary share carries the residual risk and rewards after all liabilities and costs have been

paid. Ordinary shares carry the right to receive income in the form of dividends and any residual

claim on the companys assets once its liabilities have been paid in full. Preference shares are

another type of share capital.


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They differ from ordinary shares in that the dividend on a preference share is

usually fixed at some amount and does not change. These shares usually do not carry voting

rights and, in the event of firm failure, preference shareholders are paid before ordinary

shareholders. Returns from investing in equities are generated in the form of dividend income

and capital gain arising from the ultimate sale of the shares.

Derivatives

Derivative instruments are financial assets that are derived from existing

primary assets as opposed to being issued by a company or government entity. The two most

popular derivatives are futures and options. The extent to which a fund may incorporate

derivatives products in the fund will be specified in the fund rules and, depending on the type of

fund established for the client and depending on the client, may not be allowable at all.

A futures contract is an agreement in the form of a standardized contract

between two counterparties to exchange an asset at a fixed price and date in the future. The

underlying asset of the futures contract can be a commodity or a financial security. Each contract

specifies the type and amount of the asset to be exchanged, and where it is to be delivered. The

buyer of a futures contract takes a long position, and will make a profit if the value of the

contract rises after the purchase. The seller of the futures contract takes a short position and

will, in turn, make a profit if the price of the futures contract falls.

An option contract is an agreement that gives the owner the right, but

not obligation, to buy or sell (depending on the type of option) a certain asset for a specified

period of time. A call option gives the holder the right to buy the asset. A put option gives the

holder the right to sell the asset. Buying an option involves paying a premium; selling an option

involves receiving the premium. Options have the potential for large gains or losses, and are

considered to be high risk instruments.

Property

Property investment can be made either directly by buying properties, or

indirectly by buying shares in listed property companies. Only major institutional investors with

long-term time horizons and no liquidity pressures tend to make direct property investments.

These institutions purchase freehold and leasehold properties as part of a property portfolio held

for the long term, perhaps twenty or more years. Returns are generated from annual rents and any

capital gains on realization. These investments are often highly illiquid.

Risk and Risk Aversion

Portfolio theory also assumes that investors are basically risk adverse,

meaning that, given a choice between two assets with equal rates of return they will select the


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asset with lower level of risk. Any portfolio that is being developed will have certain risk

constraints specified in the fund rules, very often to cater to a particular segment of investor who

possesses a particular level of risk appetite.

Definition of Risk

Risk and uncertainty, most financial literature the two terms are usedinterchangeably. In fact, one way to define risk is the uncertainty of future outcomes. Analternative definition might be the probability of anadverse outcome.

Composite risks involve the different risk as explained:-

(1) Interest rate risk: It occurs due to variability cause in return by changes in level ofinterest rate. These changes affect the value of security. RBI, in India, is the monitoring authority

which effectalises the change in interest rate. Any upward revision in interest rate affects fixedincome security, which carry old lower rate of interest and thus declining market value. Thus it

establishes an inverse relationship in the prize of security.

TYPES RISK EXTENT

Cash equivalent Less vulnerable to interest rate risk Long term Bond More vulnerable to interest rate risk.

(2) Purchasing power risk: It is also known as inflation risk. This risk emanates from the

very fact that inflation affects the purchasing power adversely. Purchasing power risk is more ininflationary times in bonds and fixed income securities. It is desirable to invest in such securities

during deflationary period or a period of decelerating inflation. Purchasing power risk is less in

flexible income securities like equity shares or common stuffs where rise in dividend income

offset increase in the rate of inflation and provide advantage of capital gains.

(3) Business risk: Business risk emanates from sale and purchase of securities affected bybusiness cycles, technological change etc. Business cycle affects all the type of securities viz.

there is cheerful movement in boom due to bullish trend in stock prizes where as bearish trend in

depression brings downfall in the prizes of all types of securities. Flexible income securities are

nearly affected than fix rate securities during depression due to decline n the market prize.

(4) Financial risk: Financial risk emanates from the changes in the capital structure of thecompany. It is also known as leveraged risk and expressed in term of debt equity ratio. Excess of

debts against equity in the capital structure indicates the company to be highly geared or highly

levered. Although leveraged companys earnings per share (EPS) are more but dependence on

borrowing exposes it to the risk of winding up. Maximize returns, minimize risks.


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RISK versus RETURN

Risk versus return is the reason why investors invest in portfolios. The ideal goal in portfolio

management is to create an optimal portfolio derived from the best riskreturn opportunities

available given a particular set of risk constraints. To be able to make decisions, it must be

possible to quantify the degree of risk in a particular opportunity. The most common method is

to use the standard deviation of the expected returns. This method measures spreads, and it is the

possible returns of these spreads that provide the measure of risk. The presence of risk means

that more than one outcome is possible. An investment is expected to produce different returns

depending on the set of circumstances that prevail.


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METHODOLOGY OF THE PROJECT

I have prepared the project report on EQUITIES PORTFOLIO

MANAGEMENT on the basis of optimum portfolio preparation, fundamental analysis, and

technical analysis, ratio analysis on 22 trading sessions and current monthly analysis. Theportfolio optimization is totally a calculative work. The basic methodology that I have undergone

for this project is as follows:

Problem Statement:

The main objective is whether investment in Equities is more rewarding or

not. If securities are more rewarding, can it be possible to prepare portfolio from the selected

scripts of MID-CAP, SMALL-CAP and LARGE-CAP companies.

Objectives:

To prepare portfolio, which is a barometer of market, provide maximum return at a givenlevel of risk.

To find out target price, based on technical and fundamental analysis of securities. To discover the fundamental analysis tool to estimated the true value of scripts. This

price will be compared to the price at which the market players offer to sell or buy the

securities, as it is overvalues or undervalued.

To evaluate the scripts, whether they are given good return in selected portfolio ordemanded by the customer in the market.

Research Design:

Project is totally based on descriptive research. It is prepared on more

structured way to find out problem question. Under such descriptive research I have gone

through observational studies for technical analysis, calculative study for target price deciding

and risk and return for optimum portfolio preparation.

Data Collection Method:

The data are collected from the primary (observation) and secondary sources.

Source of Data:

Under Fundamental Analysis, economy analysis is made from surveys data,

collected from ministry of finance. Industry analysis was carried form the various research report

prepared by the government of India. The company analysis is done from a directors report as

well as data disclosed on site www.Edelweiss.co.in.
http://www.edelweiss.co.in/http://www.edelweiss.co.in/


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Under Technical Analysis, various theoretical data are collected from www.ehow.com.

Various charts are collected fromwww.google.co.in/financeand www.edelweiss.com.

For portfolio preparation, needs various prices of scripts. Such prices are collected from

historical data of www.edelweiss.com. And after deriving such prices, for evaluating risk return

trade-off, formulas are taken from Securities Analysis and Portfolio Management- Fischer

Jordan.

Sampling:I have mainly concentrated on convenience sampling because I found selected sources

viable enough to provide the fundamental and technical analysis. Following scripts are selected

based on: a) Have technical break out and fundamentally strong. b) Giving good returns. c)

Reporting good volumes in last couple of months. So selected scripts are as follows:

FMCG 30,000.00 ITC

30,000.00 Procter and Gamble hygiene health care

ltd

Pharmaceuticals

30,000.00 Galaxo smithkine ltd

20,000.00 Pfizer limited

software 30,000.00 Infosys

software 40,000.00 TCS

Banks 30,000.00 State bank of India

30,000.00 HDFC bank limited

Paints 30,000.00 Asian paints

Analysis Techniques

1) Optimum portfolio preparation

a. Finding expected risk and return of each scripts and Sensitive Index (market)b. Beta, correlation, covariance of securities to the market.c. Systematic and unsystematic risk, weights, cutoff of each script for investment in

portfolio for optimization.

2) Fundamental Analysis

Economy, Industry, Company Analysis Ratio Analysis, EPS, Book-Value of script, Annual and Quarterly results Analysis. ToEstimating Target price for selected securities under optimum portfolio.

3) Technical Analysis

Chart Patterns,Trend lines, Market Indicators. Moving Average Crossover, Price Oscillator, Price Rate of Change (ROC) Estimating target price based on previous support and resistance level Deriving new support and resistance level for future intraday trading.
http://www.ehow.com/http://www.google.co.in/financehttp://www.google.co.in/financehttp://www.google.co.in/financehttp://www.edelweiss.com/http://www.edelweiss.com/http://www.edelweiss.com/http://www.google.co.in/financehttp://www.ehow.com/


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EDELWEISS BROKING LIMITED

COMPANY PROFILE

Edelweiss is a powerhouse of financial innovation illuminating both the

solutions and the perils. As one of the fastest growing investment banking and financial services

company in India, Edelweiss exists to innovate.

Company was incorporated on November 21, 1995 as a public limited company.

It received its Certificate for commencement of business on January 16, 1996. The Company

commenced investment banking activities and registered with SEBI as a Category-I Merchant

Banker (as defined under the SEBI (Merchant Bankers) Rules, 1992) and thereafter as a

Portfolio Manager (as defined under the SEBI (Portfolio Managers) Rules, 1993) and as an

underwriter under the SEBI (Underwriting) Regulations, 1993. It entered the business of

securities broking in the year 2002 by acquisition of Rooshnil Securities Private limited

which later changed to Edelweiss Securities Private Limited and is presently known as

Edelweiss Securities Limited. The year 2004 witnessed the foray of the Company into the

businesses of insurance advisory as well as commodities broking and trading. The Company

also has its presence in non banking financial activities through its subsidiaries, Cross border

Investments Private Limited (acquired in the year 2000) and ECL Finance Limited (incorporated

in the year 2005) which are NBFCs. Edelweiss Real Estate Advisors Private Limited, which

was previously our subsidiary and our subsidiary Edelweiss Trustee Services Private Limited,

were incorporated in the year 2006, for launching the companys first real estate fund which was

registered with the SEBI as a Venture Capital Fund as defined under the SEBI (Venture Capital

Funds) Regulations, 1996).

Edelweiss, a rare flower found in Switzerland. You will discover in our identity:

A graphic flower that represents ideas. Around it, the protective arms of the letter e: We believe

ideas create wealth, but values protect it.

The core inspiring thought of ideas creating wealth and values protect it is

translated into an approach that is led by intra-premiership and creativity and protected by

intellectual rigor, research and analysis.

Client Focus- is driven by the emphasis place on building long-term relationships with clients.We work closely with clients to equip them with the ability to address large, fast-growing

market.

Execution Orientation-It focuses obsessively on delivering high quality execution through our

experienced team of professionals.


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Culture- Edelweiss fosters a culture that is entrepreneurial and results-driven and that

emphasizes teamwork and intellectual rigor.

Professional Integrity- It places a strong emphasis on confidentiality, honesty and integrity in

our business dealings.

Research Driven- All businesses are built on a research and analytics foundation. Our

understanding of underlying market trends and strong analytical expertise has resulted in a

demonstrated ability to identify emerging trends and themes early.

Senior Management Team

Rashesh Shah- Chairman & CEO

Deepak Mittal- CEO, Edelweiss Tokio Life Insurance Company Limited

Naresh Kothari- President & Head, Equities Capital Market

Vikas Khemani- President & Head, Institutional Equities

Venkat Ramaswamy- Executive Director

Himanshu Kaji- President & Group COO

Rujan Panjwani- President & Head, Treasury

Ravi Bubna - President & Head, Wholesale Financing

Journey of Success Way from 2000-2010

2000 Acquisition of Cross border Investments Private Limited

2001 F & O license obtained in the year 2001

2002 NBFC registration of Cross border Investments Private Limited Acquisition of

Rooshnil Securities Private Limited

2004 Commencement of Commodity Broking

2005 Commencement of Insurance Broking

2006 NBFC registration of ECL Finance Limited

It managed the first Qualified Institutional Placement under the new regulatory

framework in India.

It advised the first AIM listing of a listed Indian corporate.

2007 Clearing Member License

2008 Edelweiss Capital Limited has informed that: The Board of Directors of Edelweiss

Capital Limited, vide a Circular Resolution passed onApril 7, 2008 have approved change in the

Company Secretary and Compliance Officer of the Company from Ms. Smruti Jhaveri to Mr.Chetan Gandhi. Edelweiss gets SEBI nod to launch MF

2009 Edelweiss Capital Ltd has appointed Mr. Berjis Desai as an Additional (Independent)

Director on the Board of Directors of the Company in November 18, 2009. Edelweiss forms

venture with Tokio Marine.

2010 Edelweiss Capital buys Anagram for Rs 164 crores.
http://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=Ihttp://www.edelcap.com/AboutUs/SrManagementTeamContent.aspx?ReportID=3DDDCB71-04A0-4110-AD59-950BD846596E&PageType=I


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EDELWEISS SECURITIES RESEARCH CENTEREdelweiss Securities Research Center is a special research cell where some of India's finest

financial analysts bring you intensive research reports on how the stock market is faring, when is

the right time to invest, when to execute your order and more. EBL provides both types of

research reports.

Fundamental Research reports

a. Intraday calls

b. Special Reports

c. Market Mornings

d. Daily Market Brief

e. Sector overall Report

f. Stock Ideas

g. Derivatives Reports

h. Portfolio Advices

Technical Research reportsDepending on what kind of investor you are, Edelweiss Broking Ltd. (EBL) brings

customers from fundamental or basic research and technical research. As an investor with

Edelweiss Securities, Customers get access to these research reports exclusively. Customers get

access to the following reports. Research process is given below.

PRODUCTS OFFERED BY EDELWEISS SECURITIES LIMITED

1) Portfolio Management Services [PMS]

2) Margin Trading Facility

3) Demat Account Facility4) IPOs

5) Mutual Funds


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PORTFOLIO MANAGEMENT in Edelweiss Broking Limited

Portfolio Management

Edelweiss offers the discerning investor an opportunity to access its asset

management expertise through its portfolio management service (PMS). The basic objective of thisproduct is to provide unbiased investment management strategy based on rigorous fundamental

analysis while taking cognizance of market conditions and movements.

The PMS team in addition to its own research capability also has access to the

Edelweiss Research team covering a universe of about 50 key Large Cap and Mid Cap companies

across sectors like IT, Engineering, Auto, Oil & Gas, Banking, Pharmaceuticals. The structure of

portfolio management uses a combination of the top-down and the bottom-up approach to arrive

at a basket of investment worthy stocks. The team is committed to a strong discipline in booking

profits and on focusing on client servicing and wealth enhancement.

Why PMS?

Bespoke Advice - Discretionary Portfolio Services give you the benefit of investment advice

designed to achieve your financial objectives.

Professional Management - The service provides professional management of equity portfolios

with the objective of delivering consistent long-term performance while controlling risk.

Continuous Monitoring - We recognize that portfolios need to be constantly monitored andperiodic changes made to optimize the results.

Risk Control- Risk team is responsible for establishing our investment strategy and providing us

real time information to support our portfolio managers.

What differentiates the Edelweiss PMS from investments in Mutual Funds?

Personal Fund ManagerThe clients portfolio is professionally managed by a fund manager

who is easily accessible to the investor unlike in a Mutual Fund in addition to which we provide a

designated Relationship Manager for the client who can offer asset allocation advisory on your

entire portfolio

Superior Returns Portfolio returns are protected in volatile markets through hedging in

derivatives and short-term capital gains can be set-off against business income for clients in a PMS

as compared to Mutual Fund


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PORTFOLIO MANGEMENT SERVICES (PMS)

Portfolio Diversification

There are several different factors that cause risk or lead to variability in returnson an individual investment. Factors that may influence risk in any given investment vehicle

include uncertainty of income, interest rates, inflation, exchange rates, tax rates, the state of the

economy, default risk and liquidity risk. In addition, an investor will assess the risk of a given

investment (portfolio) within the context of other types of investments that may already be

owned with savings components, and property.

One way to control portfolio risk is via diversification, whereby investments are

made in a wide variety of assets so that the exposure to the risk of any particular security is

limited. This concept is based on the old adage do not put all your eggs in one basket. If an

investor owns shares in only one company, if that company goes bankrupt, the investor might

lose 100 per cent of the investment. If, however, the investor owns shares in several companies

in different sectors, then the likelihood of all of those companies going bankrupt simultaneously

is greatly diminished. Thus, diversification reduces risk.

TECHNIQUES OF PORTFOLIO MANAGEMENT

(1). Equity portfolio-

Equity portfolio is affected by internal and external factors:

(a) Internal factors

(1) Market value of shares

(2) Book value of shares

(3) Price earnings ratio (P/E ratio)

(4) Dividend payout ratio

(b) External factors(1) Government policies

(2) Norms prescribed by institutions

(3) Business environment

(4) Trade cycles


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(2). Equity stock analysisThe basic objective behind the analysis is to determine the

probable futurevalue of the shares of the concerned company. It is carried out primarily fewer

than two ways:

(a) Earnings per share (b) Price earnings ratio

(A) Trend of earning: -

A higher price-earnings ratio discount expected profit growth. Conversely, a downwardtrend in earning results in a low price earnings ratio to discount anticipated decrease in

profits, price and dividend.

Rising EPS causes appreciation in price of shares, which benefits investors in lower taxbrackets? Such investors have not pay-tax or to give lower rate tax on capital gains.

Many institutional investors like stability and growth and support high EPS. Growth of EPS is diluted when a company finances internally its expansion program and

offers new stock.

EPS increase rapidly and result in higher P/E ratio when a company finances itsexpansion program from internal sources and borrowings without offering new stock.

(B) Quality of reported earning: -

Quality of reported earnings affects P/E ratio. The factors that affect the quality ofreported earnings are as under:

Depreciation allowances: -

Larger (Non Cash) deduction for depreciation provides more funds to company to financeprofitable expansion schemes internally. This builds up future earning power ofcompany.

Research and development outlets: -

There is higher P/E ratio for a company, which carries R&D programs. R&D enhancesprofit earning strength of the company through increased future sales.

Inventory and other non-recurring type of profit: -

Low cost inventory may be sold at higher price due to inflationary conditions amongprofit but such profit may not always occur and hence low P/E ratio.

(C) Dividend policy: -

Dividend policy is significant in affecting P/E ratio. With higher dividend ratio, equity price goes

up and thus raises P/E ratio. Dividend rates are raised to push in share prices up. Dividend cover

is calculated to find out the time the dividend is protected, In terms of earnings.


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Dividend Cover = EPS/Dividend per Share

(D) Investors demand: -Demand from institutional investors for equity also enhances the

P/E ratio.

(3) Quality of management: -Investors decide about the ability and caliber of management

and hold and dispose of equity academy. P/E ratio is more where a company is managed by

reputed entrepreneurs with good past records of management performance.

Types of Portfolios:

Aggressive Portfolio (Growth): This strategy might be appropriate for investors who seekHigh growth and who can tolerate wide fluctuations in market values, over the short term.

Growth Portfolio (Growth): This strategy might be appropriate for investors who have apreference for growth and who can withstand significant fluctuations in market value.

Balanced Portfolio (Capital appreciation and income): This strategy might be

appropriate for investors who want the potential for capital appreciation and some growth, and

who can withstand moderate fluctuations in market values.

Conservative Portfolio (Income and capital appreciation): This strategy may be

appropriate for investors who want to preserve their capital and minimize fluctuations in market

value.

RISKRETURN MATRIX

Covariance and Correlation

To measure the success of a potentially diversified portfolio, Covariance and

correlation are considered. Covariance measures to what degree the returns of two risky assets

move in tandem. A positive covariance means that the returns of the two assets move together,

whilst a negative covariance means that they move in inverse directions.

Covariance

COV(x, y) = p(x-x) (y-y) for two investments x and y, where p is the probability.

Covariance is an absolute measure, and covariance cannot be compared with one another. To

obtain a relative measure, the formula for correlation Coefficient [r] is used.

Correlation coefficient (r) = COVxy xy


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Perfect positive correlation(correlation coefficient = +1) occurs when the returns from twosecurities move up and down together in proportion. If these securities were combined in a

portfolio, the offsetting effect would not occur.

Perfect negative correlation (correlation coefficient = 1) takes place when one security

moves up and the other one down in exact proportion. Combining these two securities in a

portfolio would increase the diversification effect.

Uncorrelated (correlation coefficient = 0) occurs when returns from two securities move

independently of each other that is, if one goes up, the other may go up or down or may not

move at all. As a result, the combination of these two securities in a portfolio may or may not

create a diversification effect. However, it is still better to be in this position than in a perfect

positive correlation situation.

Unsystematic and systematic riskAs mentioned previously, diversification diminishes risk: the more shares orassets held in a portfolio or in investments, the greater the risk reduction. However, it is

impossible to eliminate all risk completely even with extensive diversification. The risk that

remains is called market risk; the risk that is caused by general market influences. This risk is

also known as systematic risk or non-diversifiable risk. The risk that is associated with a specific

asset and that can be abolished with diversification is known as unsystematic risk, unique risk or

diversifiable risk.

Total risk = Systematic risk + Unsystematic risk

Systematic risk = the potential variability in the returns offered by a security or asset causedby general market factors, such as interest rate changes, inflation rate movements, tax rates, state

of the economy.

Unsystematic risk = the potential variability in the returns offered by a security or asset

caused by factors specific to that company, such as profitability margins, debt levels, quality of

management, susceptibility to demands of customers and suppliers. As the number of assets in a

portfolio increases, the total risk may decline as a result of the decline in the unsystematic risk in

that portfolio. The relationship amongst these risks can be quantified as follows

TR2 = SR2 + UR2 or 2 i = s2 + u2 Where:

! = the investments total risk (standard deviation)

s = the investments systematic risk; u =the investments unsystematic risk.


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The correlation coefficient between two investment opportunities can be expressed

as: s = i CORim Where, s = the investment systematic risk; i = the investments

total risk (systematic and unsystematic); CORim = the correlation coefficient between the

return of the investment and those of the market.

Beta (financial elasticity): It's a measure of individual stock risk relative to the

overall stock market risk. Before investing in a company's stock, the beta analysis allows an

investor to understand if the price of that security has been more or less volatile than the market

itself. Taking decision based on a sound beta analysis will definitely enhance the portfolio

performance.

To calculate a stock's beta we only need two sets of data, first, closingstock prices for the stock we are examining and closing prices for the index chosen as a proxy for

the stock market. It can be BSE 500 or Sensex.

The formula for the beta can be written as:

Beta = Covariance (stock versus market returns) / Variance of the Stock Market

Interpretation:

The interpretation of Beta values is also easy. In simple words, if the stock's

price experiences movements greater (more volatile) than the stock market, then the beta value

will be greater than 1. If a stock's price movements are less than the market fluctuations then the

beta value will be less than 1. And if the stock price is moving along with the market movement

then the beta will be near about 1. Since beta also represents risk factor then a beta value higher

than 1 will indicate more risk and in turn more expected return for investors. The reverse is also

true of a stock's beta is less than 1, in that case we'd expect less volatility, lower risk, and

therefore lower overall returns.

Large Cap - Big Cap Mean:

A term used by the investment community to refer to companies with a

market capitalization value ofmore than $10 billion. Large cap is an abbreviation of the term

"large market capitalization". Market capitalization is calculated by multiplying the number of a

company's shares outstanding by its stock price per share. Large cap companies are the bigKahunas of the financial world. Examples include Wal-Mart, Microsoft and General Electric.

Mid Cap Mean:

As the name implies, a mid cap company is in the middle of the pack

between large cap and small cap companies. A company with a market capitalization between

$2 and $10 billion, which is calculated by multiplying the number of a company's shares

outstanding by its stock price. Mid cap is an abbreviation for the term "middle capitalization".


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Small Cap Mean:

Refers to stocks with a relatively small market capitalization. The

definition of small cap can vary among brokerages, but generally it is a company with a market

capitalization ofbetween $300 million and $2 billion.

One of the biggest advantages of investing in small-cap stocks is the opportunity

to beat institutional investors because mutual funds have restrictions that limit them from buying

large portions of any one issuer's outstanding shares, some mutual funds would not be able to

give the small cap a meaningful position in the fund.

Selection of companies:Few companies are selected in the portfolio from different market capital

Index. The reason behind selection from different capital market index is that there is large

number of securities in market, which gives higher return which are in both Nifty and Sensex.

Now a days some of the investor does not know even about the name of companies, hence, theyare not considering such securities in their portfolio, which can more reward oriented. Here out

of NSE Index, 10 companies are selected from the different sectors. Such companies are reported

a good volume as well as return in last 5 to 7 months. Selection is mainly due to such companieshave passed the stage of technical break out and they are on lifetime high basis. Such companies

are:

FMCG Large Cap ITC

Large Cap Procter and Gamble hygiene and

healthcare ltd.

Pharmaceuticals Large Cap Pfizer Limited

Large Cap Galaxo smithkline ltd

Software Large Cap Infosys

Software Large Cap TCS

Banks Large Cap State bank of IndiaLarge Cap HDFC BANK Ltd.

Paints Large Cap Zydus Wellness Ltd


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ANALYSIS & FINDINGS

Now this companies which I have selected, are they really going to offer

the investor a good return. So for that, investor should have to find out the risk and return profile

of each security, with respect to change in index. So once it found than the investor mustevaluate such securities by Sharpe optimum portfolio model, which will say what, should be the

size of your portfolio as well as weight of investment for particular securities. So Risk and return

of such securities are as follows:

Disclosure1. Above all data are calculated on the basis of prices of each securities of 2

ndMay, 2011

to 31st May 2011.

2. All the above details are shown in the annexure.

SIMPLE EQUITY PORTFOLIO OPTIMIZATION

The construction of an optimal portfolio is simplified if a single number

measures the desirability of including a stock in the optimal portfolio. The desirability of any

stocks directly related to its excess return-to-beta ratio. If stocks are ranked by excess return to

beta (from highest to lowest), the ranking represents the desirability of any stocks inclusion in a

portfolio. The number of stocks selected depends on unique cutoff rate such that all stocks with

higher ratio of (Ri-Rf)/i will be included and all stocks with lower ration excluded.


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Step1 Ranking Securities

Excess return to Beta ratio = (Ri-Rf)/i

Ri = Expected return on stock i

Rf = Return on a riskless asset

i = Expected change in the rate of return on stock i associated with a 1% change in the market

return.

As seen above table here Excess returns to beta ratio are already ranked from

highest to lowest. So selecting the optimal portfolio involves the comparison of (Ri Rf)/ iwith C*. Here we have to find out cutoff rate, which helps in selecting securities in our optimumportfolio. And securities whose excess return to beta ratio is lower than the cutoff rate, areexcludes from our portfolio.

Step2 Establishing Cutoff Rate

For a portfolio of i stock, C is given by:


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Where

2m = Variance in the market index.

2ei = Variance of a stocks movement that is not associated with the movement of the market

index; that is the stocks unsystematic risk.

All securities, whose excess return-to-beta ratio is above the cutoff rate, are selected and

all whose ratios are below are rejected. The value ofC* is computed from the characteristics of

all of the securities that belong in the optimum portfolio. So here first 6 companies are thosewhose excess return to beta ratio are more than C i.Now to determine C*, we will take the last

securities as per ranked which is proving our condition i.e. excess return to beta more than that of

Ci. So the cutoff rate will be (C*) = 75.318.

Step3 Arriving at the Optimal PortfolioOnce we know which securities are to be included in the optimum portfolio,

we must calculate the percent invested in each security. The percentage invested in each security

is:


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Markowitz Portfolio Risk Return Model:

In 1952, Harry Markowitz published a portfolio selection model that

maximized a portfolio's return for a given level of risk. A graph of these portfolios constitutes the

efficient frontier of risky assets. This model required the estimation of expected returns and

variances for each security and a covariance matrix that calculated the covariance between each

possible pair of securities within the portfolio based on historical data or through scenario

analysis. For n securities, that would require n estimates of expected returns, n estimates of their

variances, and a covariance matrix that consisted of (n2n) / 2 estimates of covariances. The

number of required calculations for covariance increases rapidly as n increases.

Particulars

Return on Portfolio 3.3572

Variance on Portfolio 0.57314

Standard Deviation 0.7570

Risk on Portfolio 4.82825


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Single-Index Model

To simplify analysis, the single-index model assumes that there is only 1

macroeconomic factor that causes the systematic risk affecting all stock returns and this factor

can be represented by the rate of return on a market index, such as the NSE 100. According to

this model, the return of any stock can be decomposed into the expected excess return of the

individual stock due to firm-specific factors, commonly denoted by its alpha coefficient (), the

return due to macroeconomic events that affect the market, and the unexpectedmicroeconomic

events that affect only the firm. Specifically, the return of stock (I) is:


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The term irm represents the stock's return due to the movement of the

market modified by the stock's beta, while ei represents the unsystematic risk of the security

due to firm-specific factors.

Macroeconomic events, such as interest rates or the cost of labor, causes

the systematic risk that affects the returns of all stocks, and the firm-specific events are the

unexpectedmicroeconomic events that affect the returns of specific firms, such as the death of

key people or the lowering of the firm's credit rating, that would affect the firm, but would have

a negligible effect on the economy. The unsystematic risk due to firm-specific factors of a

portfolio can be reduced to zero by diversification.

The index model is based on the following:

Most stocks have a positive covariance because they all respond similarly tomacroeconomic factors.

However, some firms are more sensitive to these factors than others, and this firm-specific variance is typically denoted by its beta (), which measures its variance

compared to the market for one or more economic factors.

Covariances among securities result from differing responses to macroeconomic factors.Hence, the covariance of each stock can be found by multiplying their betas and the

market variance:

Cov (Ri, R

k) =

i

k

2.

This last equation greatly reduces the computations required to

determine covariance because the covariance of the securities within a portfolio must be

calculated using historical returns, and the covariance of each possible pair of securities in the

portfolio must be calculated independently. With this equation, only the betas of the individual

securities and the market variance need to be estimated to calculate covariance. Hence, the index


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model greatly reduces the number of calculations that would otherwise have to be made for a

large portfolio of thousands of securities.

Variance on portfolio = (Xi i)2

* (Em)2

Particulars

Return on Portfolio 6.4670

Variance on Portfolio 2.276008

Market Variance 2.24918

Risk on Portfolio 4.82825


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FUNDAMENTAL ANALYSIS

AccLtd

EveEdu

OracleFinance

CiplaPha

SunPha

TataMotors

AndBank

L &T

Hawkins

BajajElec

ZydusWellness

M.Cap(cr)

18932 1038 19060 26929 50517 62451 8153 105374

870 2629 2309

P/E 18.3 15.3 17.1 25.5 27.7 6.9 6.7 24.8 27.4 17.8 41

EPS (Rs) 55.12 35.54 132.42 13.16 17.54 142.7 21.83 70 60 14.9 14.57

FV (Rs) 10 10 5 2 1 10 10 2 10 2 10

Div % 3 0.3 0 0.6 0.6 1.4 3.8 0.7 2.4 0.9 0.7

ROE (%) 17.67 - - 21.14 17.65 19 23.17 21 112.3 32.5 49.1

Q on Qsales (%)

16.12 16.14 17.32 7.44 -8.61 12.39 11.40 35 28.65 42.1 -14.1

Q on Q

profit(%)

40.70 38.26 31.61 -8.03 38.60 0.88 -5.48 88.4 69.48 49.6 -3.8

2010sales(cr)

9099 293.50 2874 5412 4180.3

95568 8292 44174 295.4 2249.4 335.5

Netprofit(cr)

1078 45.45 774 1083 1351 2571 1272 5450 36.8 117.1 59.5

Totaldebt (cr)

533.9 83.93 0 5.07 171.2 35192 99782 24608 12.3 151.83 0

EPS (Rs) 52.27 29.73 92.26 13.15 62.95 42.56 21.84 88.4 63 11.61 14.6

Yearhigh/low

1144/800

756/404

2483/1844

381/286

512/334

1382/748

189/124

2212/1461

1699/1621

346/188

669/471.7

3yrHigh/Low

1144/365

756/79

2550/405

381/145

512/191

1382/125

189/34

2212/556

1699/827

346/26.6

669.4/195

5Yrhigh/low

1315/365

1236/79

2635/405

381/145

512/135

1382/124

189/34

2345/467.4

1730/63.5

346/26.6

669.4/195


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TECHNICAL ANALYSIS:

ACC LIMITED:

ACC builds on strong cement demand outlook Apr 26, 2011:ACC issued the future outlook along with Q1 March 2011 result during

trading hours today, 26 April 2011. Meanwhile, the BSE Sensex was down 18.23 points, 1.03

lakh shares were traded in the counter as against an average daily volume of 69,350 shares in the

past one quarter.

Till 26th April, 2011Stock High(26th

April)

Rs. 1124.90 Stock Low Rs. 1101.65

Stock 52weekHigh(6th April,2011)

Rs. 1142.50 Stock 52week Low(23rd June,2010)

Rs. 700

Gaining 7.09% compared with the Sensex 4.09% over the past 1month.

The Script rising 9.49% as against 3.24% gain in the Sensex over in past one quarter.

Market Capital Rs. 18, 985 crores Face Value per share Rs.10

On a consolidated basis, ACC's net profit fell 10.87% to Rs 350.17

crore on 14.09% increase in total income to Rs 2625.58 crore in Q1 March 2011 over Q1

March 2010. ACC said its operations benefited from better volumes, but realizations were

hurt by steep escalations in input costs. Manufacturing costs rose sharply as cost of energy,

fuel, raw materials like fly ash and slag increased. Coal became dearer both in the domestic

and international markets. Transport costs also suffered inflation.

ACC produces 2.05 million tons of cement during April - May 02, 2011:

Production inApril-May2011

2.05million tons(13.885)

Dispatched 2.05million tons

Production inApril-May2010

1.80million tons Dispatched 1.79million tons

Production at end ofMay-2011


Production at end ofMay-2010



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ACC`s equity shareholders to approve scheme of amalgamation May 07, 2011:The equity shareholders meeting of ACC will be held on 01 June 2011

to approve the scheme of amalgamation of Lucky Minmat, National Limestone Company and

Encore Cement and additives with ACC.

EVERONN EDUCATION:

Everonn Education net profit rises 68.13% in the year ended March-May 23,

2011:Net profit of Everonn Education rose 68.13% to Rs 72.97 crores in the

year ended March 2011 as against Rs 43.40 crores during the previous year. Sales rise 43.19%

to Rs 301.63 crores in the year ended March 2011 as against Rs 210.65 crores during the

previous year. The board of Everonn Education in its meeting on 23 May 2011 has

recommended final dividend at the rate ofRs 2.50 per share (25%).

Everonn Education surges on strong Q4 results May 24, 2011:Meanwhile, the BSE Sensex was up 35.88 points, or 0.20%, to 18,029.21

On BSE, 65,651 shares were traded in the counter compared with the average daily volume

of 2.38 lakh shares in the past one quarter.

Stock High (24th May) Rs. 554.50 Stock Low Rs. 535

Stock 52week High

(7th October, 2010)

Rs. 756.45 Stock 52week Low

(26th May, 2010)

Rs. 334

Sliding 21.49% compared with the Sensex's 8.21% fall in the market over the past one month

The Script rising declining 13.95% as against Sensex's decline of1.02% over past one quarter.

Market Capital Rs. 1061 Crores Face Value per share Rs.10

On consolidated basis, Everonn Education's net profit rose 48.8% to Rs

67.64 crores on 45.4% increase in total income to Rs 427.44 Crores in the year ended March

2011 over the year ended March 2010.

Everonn Education allots equity shares May 24, 2011:The board of Everonn Education in its meeting on 23 May 2011 has

approved the allotment of 1, 67,652 equity shares of HT Media, consequent upon exercise of

conversion of fully convertible debentures.

ORACLE FINANCIAL SERVICES SOFTWARE:

Oracle Financial Services Software allots equity shares May 10, 2011:The committee of Oracle Financial Services Software in its meeting on

10 May 2011 has allotted 5,550 equity shares of face value of Rs 5 each to an eligible


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employees of the company who exercised their stock options under the Employee Stock

Option Scheme, 2002.With this allotment, the paid up capital of the company increased to Rs

41.95 crores divided into 8, 39, 02,152 equity shares of face value of Rs 5 each.

Oracle Financial Services Software Ltd net profit rises 46.48% in the AuditedYear ended March 2011- May 11, 2011:

Meanwhile, the BSE Sensex was down 18.57 points, or 0.10%, to

18,494.20. On BSE, 48,000 shares were traded in the counter compared with average volume of

13,000 shares over the past two weeks.

Stock High(26th

April)

Rs. 2174 Stock Low Rs. 1985

Stock 52week High Rs.2289.80 Stock 52week Low Rs.1843.70

Net profit rose 46.48% to Rs 967.98 crores as against Rs 660.84 crores during the previous

year.

Sales rose 5.22% to Rs 2360.51 crores as against Rs 2243.47 crores during the previous year.

Market Capital Rs. 18, 977crores Face Value per share Rs.5

On a standalone basis, net profit jumped 46.48% to Rs 967.98 crores on

5.22% increase in total revenue to Rs 2360.51 crores in the year ended March 2011 over the

year ended March 2010.

Oracle introduces Oracle Financial Services Hedge Management and IFRSValuations Jun 02, 2011:

Oracle has introduced Oracle Financial Services Hedge Management and

IFRS Valuations. Oracle Financial Services Hedge Management and IFRS Valuations allow

financial institutions to address International Financial Reporting Standards (IFRS) requirements

for hedge accounting and valuation. Given market volatility, hedge accounting must be a fully

automated process.

The new IFRS requirements for documentation and transparency make

manual and siloed hedge accounting and valuation processes impractical. Emerging regulations,

such as The Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States,

Basel III and the adoption of standards defined in IFRS, mandate tighter alignment between the

controller, treasury and risk operations.


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As part of the Oracle Financial Services Analytical Applications suite that

shares a common account-level relational data model and application architecture, Oracle

Financial Services Hedge Management and IFRS Valuations facilitates such alignment.

CIPLA LIMITED:

Cipla net profit declines 22.33% in the March 2011 quarter May 05, 2011:Net profit of Cipla declined 22.33% to Rs 214.00 crores in the

quarter ended March 2011 as against Rs 275.53 crores during the previous quarter ended year.

Sales rose 22.60% to Rs 1615.22 crores in the quarter ended March 2011 as against Rs 1317.49

crores during the previous quarter ended year.

For the unaudited full year, net profit declined 10.58% to Rs 967.12

crores in the year ended March 2011 as against Rs 1081.49 crores during the previous year.

Sales rose 14.26% to Rs 6123.84 crores in the year ended March 2011 as against Rs 5359.52

crores during the previous year.

Particulars Quarter Ended Year Ended

Mar. 2011 Mar. 2010 % Var. Mar. 2011 Mar. 2010 % Var.

Sales 1615.22 1317.49 23 6123.84 5359.52 14

OPM % 18.70 19.58 -4 21.84 25.25 -13

PBDT 320.65 302.61 6 1411.75 1417.83 0

PBT 251.00 253.13 -1 1158.12 1229.99 -6

NP 214.00 275.53 -22 967.12 1081.49 -11

Cipla slips on weak Q4 results May 06, 2011:

Meanwhile, the BSE Sensex was up 176.23 points, or 0.97%, to

18,386.81. On BSE, 61,513 shares were traded in the counter as against average daily volume of

98,845 shares over the past two weeks.

Stock High(6th May) Rs. 302 Stock Low Rs. 295.15

Stock 52week High Rs.381 Stock 52week Low Rs.286.05

growth ofmore than 21% in income from operationsNet profit fell 10.6% to Rs 967.12 crores on 14.3% rise in net sales to Rs 6123.84 crores in theover year.

Market Capital Rs. 26, 945crores Face Value per share Rs.2

Domestic sales grew by 15%, exports sales rose 28%, whereas other operating income wasdown by Rs 3 crores.


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The company's operating margins, as a percent to income from operations,

are lower on a year-on-year basis due to change in product mix resulting in increase in material

cost by 3% and negative contribution of Indore special economic zone (SEZ) because of

optimization.

Material cost has increased by about 3% on year-on-year basis due to

changes in product mix primarily due to higher proportion of anti-retroviral in formulation

exports. Depreciation has increased by about Rs 20 crores due to additions to fixed assets

mainly on account of commissioning of Indore SEZ factory.

SUN PHARMA:

Sun Pharma receives USFDA approval May 04, 2011:Sun Pharma Advanced Research Company (SPARC) has received USFDA

approval for its New Drug Application (NDA) for DOCEFREZ (docetaxel) for injection, 20mg/vial and 80 mg/vial for locally advanced or metastatic breast cancer, locally advanced or

metastatic non-small cell lung cancer and hormone refractory metastatic prostate cancer.

Sun Pharmaceutical Industries to announce financial results May 28, 2011:Net profit of Sun Pharmaceuticals Industries rose 45.59% to Rs 372.78

crore in the quarter ended March 2011 as against Rs 256.04 crores during the previous quarter

ended. Sales rose 7.18% to Rs 498.74 crores in the quarter ended March 2011 as against Rs

465.32 crores during the previous quarter ended.

For the audited full year, net profit rose 53.99% to Rs 1383.80 crores inthe year ended March 2011 as against Rs 898.65 crores during the previous year. Sales rose

6.93% to Rs 1933.12 crores in the year ended March 2011 as against Rs 1807.85 crores during

the previous year ended.

In the consolidated full year results, the company reported net profit after

minority interest of Rs 1816.06 crores in the year ended March 2011 as against Rs 1351.08

crores during the previous year ended March 2010. Sales reported to Rs 5721.43 crores in the

year ended March 2011 as against Rs 4007.45 crores during the previous year ended March

2010.



Sales 498.74 465.32 7 1933.12 1807.85 7

OPM % 70.09 50.15 40 68.35 51.37 33


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PBDT 404.72 289.07 40 1518.25 1018.63 49

PBT 388.89 268.88 45 1454.02 949.16 53

NP 372.78 256.04 46 1383.80 898.65 54

Sun shines on Sun Pharma after good Q4 results May 30, 2011:

Meanwhile, the BSE Sensex was up 54.70 points, or 0.30%, to 18,320.80.

On BSE, 25,544 shares were traded in the counter compared with the average daily volume of

74,265 shares in the past one quarter.

Stock High(6th May) Rs. 461.50 Stock Low Rs. 449

Stock 52week High Rs.511.45 Stock 52week Low Rs.315.60

Gaining 6.30% as against Sensex's rise of 3.19%.

Net profit rose 34.4% to Rs 1816.06 crores on 42.8% surge in net sales to Rs 5721.43 crores inthe year ended March 2011 (FY 2011) over the year.

Equity Capital Rs. 103.56 crores Face Value per share Rs.1

Sun Pharmaceuticals Industries board has recommended a dividend of Rs 3.50 per equity sharefor the year.

Sun Pharmaceuticals Industries said that Taro Pharmaceutical Industries

(Taro), a pharmaceutical company, incorporated in Israel became a subsidiary of the company on

20 September 2010. Accordingly, the FY 2011 results includes the relevant results of Taro and

its subsidiaries from the date Taro became subsidiary of the company and therefore the

corresponding figures for the previous periods are not comparable.

In Q4 March 2011, abbreviated new drug applications (ANDAs) for 8

products were filed by Sun Pharmaceuticals Industries. With this, in FY11, ANDAs for a total

of25 products have been filed by Sun Pharmaceuticals Industries. ANDAs for 2 products from

Sun Pharmaceuticals Industries were approved taking the total approvals to 14 in FY 2011. In

addition, Taro received approval for 3 in Q4 March 2011. Counting all of these and 5 filed

ANDAs withdrawn during the year, cumulatively ANDAs for 377 products have been filed

across Sun Pharmaceuticals Industries and Taro, of which 225 have been approved by the USFood and Drug Administration as on 31 March 2011. Of the balance 152 awaiting approval, 20

have tentative approvals.


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TATA MOTORS:

Tata Motors nudges higher on good April sales May 02, 2011:

On BSE, 40,100 shares were traded in the counter as against average daily

volume of 4.69 lakh shares over the past one quarter.

Stock High(6th May) Rs 1243.90 Stock Low Rs. 1229

Stock 52week High

(6th December 2010)

Rs.1381.40 Stock 52week Low

(25 May 2010)

Rs.670

Falling 0.82% compared with the Sensex's 0.08% rise over the past one month. Jumping 7.28%

as against 4.02% gain in the Sensex in past one quarter.

Net profit declined 19.12% to Rs 1811.82 crores in the year ended as against Rs 2240.08 croresduring the previous year. Sales rose 35.15% to Rs 47807.42 crores in the year ended as againstRs 35373.78 crores during the previous year.

Equity Capital Rs 634.66 crores Face Value per share Rs.10Sales increased 10% to 62,296 units in May 2011 over Year. Domestic sales rose 8% to 56,762

units, while exports jumped 39% to 5,534 units. Sales of commercial vehicles in the domestic

market rose 19% to 37,361 units.

Tata Motors recommends dividend May 26, 2011:The board of Tata Motors in its meeting on 26 May 2011 has

recommended dividend at the rate ofRs 20 per ordinary share (200%) and Rs 20.50 per 'A'

Ordinary share (205%) for FY 2010-11. the face value of Rs 10 each into ordinary and 'A'

ordinary shares, both of the face value ofRs 2 each, subject to approval of shareholders.

Tata Motors net profit declines 19.12% in the year ended March 2011 May26, 2011:

In the consolidated full year results, net profit after minority interest ofRs

9273.62 crores in the year March 2011 as against Rs 2571.06 crores during the previous year.

Sales reported to Rs 122426.19 crores in the year March 2011 as against Rs 91893.45 crores

during the previous year.

Tata Motors skids on cautious outlook May 27, 2011:

Meanwhile, the BSE Sensex was up 148.40 points, or 0.82%, to 18,193.04

On BSE, 2.50 lakh shares were traded in the counter as against average daily volume of 3.45

lakh shares over the past one quarter. The large-cap stock had underperformed the market over

the past one month till 26 May 2011, falling 7.95% compared with the Sensex's 7.68% fall. The

scrip had however outperformed the market in past one quarter, rising 5.08% as against 1.94%

gain in the Sensex.


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Increase in infrastructure spending could propel demand for MHCV

trucks, it said. Services and agriculture sector along with rural connectivity, proliferation of hub

& spoke model and demand of passenger applications is expected to drive growth in LCV/SCV

segment. Tata Motors said it proposes to ramp up production of Ace family vehicles via

additional capacity in Dharwad. Tata Motors said future products in pipeline for the year ending

March 2012 (FY 2012) include variants from MHCV and Prima range and World LCV range.

Tata Motors also intends to extend export potential for CVs.

With regard to the outlook on its passenger vehicles (PV) division, Tata

Motors said increased focus on rural markets is expected to drive volume growth. The company

said it will continue transformation and strengthening of the existing product portfolio through

improved value propositions and exploiting emerging trends.

Tata Motors said it will sustain low cost base with continuous cost

reduction efforts in its PV division. The company intends to extend export potential of PVs and

commence exports of the Tata Nano. Tata Motors said competitive intensity and increasing costs

in the passenger vehicle segment could pose a risk to operating margins going ahead. While

disposable incomes and consumption has risen, higher inflation, interest costs and fuel price

increases have the potential to adversely impact demand for passenger vehicles in India, Tata

Motors said.

With regard to the outlook on its British unit Jaguar Land Rover (JLR), Tata

Motors said it will continue to work on profitable volume growth, managing costs and improving

efficiencies to sustain the growth momentum. The company said it will emphasis on growth

markets viz. China, Russia, India and Brazil for the two luxury brands -- Jaguar and Land Rover.

The company said external geopolitical and economic factors including

exchange rate, could impact volumes and profitability of JLR. Tata Motors' board approved a 5-

for-1 stock split and recommended a dividend of Rs 20 per share for FY 2011, higher than Rs 15

per share paid in FY 2010.

Tata Motors slips as domestic car sales drop in May 2011 Jun 01, 2011:

Meanwhile, the BSE Sensex was up 59.71 points, or 0.30%, to 18,558.05.On

BSE, 3.06 lakh shares were traded in the counter as against an average daily volume of 3.48 lakhshares in the past one quarter. The stock had underperformed the market over the past one month

until 31 May 2011, sliding 11.11% compared with the Sensex's 3.31% fall. The scrip had also

underperformed the market in past one quarter, gaining 0.99% as against 3.81% gain in the

Sensex.

J J Irani ceases as director of Tata Motors Jun 06, 2011:


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Tata Motors has announced that J J Irani has stepped down from the board ofthe company on 02 June 2011 on reaching the age of 75 years in accordance with the company's

retirement policy.

ANDHRA BANKAndhra Bank to increase its base rate & BMPLR May 06, 2011:

Andhra Bank has decided to increase the base rate from 9.50% to 10.00%

with effect from 09 May 2011. The bank has also decided to increase the Benchmark Prime

Lending Rate (BMPLR) from the existing rate of 13.75% per annum to 14.25% per annum with

effect from 09 May 2011.

Andhra Bank net profit rises 30.18% in the March 2011 quarter May 05,2011:

Net profit of Andhra Bank rose 30.18% to Rs 312.78 crores in the quarter

ended March 2011 as against Rs 240.26 crores during the previous quarter. Total operating

income rose 38.38% to Rs 2363.50 crores in the quarter ended March 2011 as against Rs

1707.95 crores during the previous quarter.

Net profit rose 21.15% to Rs 1267.07 crores in the year ended March 2011 as

against Rs 1045.85 crores during the previous year. Total operating income rose 30.10% to Rs

8291.28 crores in the year ended March 2011 as against Rs 6372.87 crores during the previous

year ended March 2010.

In the consolidated full year results, the bank reported net profit of Rs

1267.78 crores in the year ended March 2011 as against Rs 1049.67 crores during the previous

year. Total operating income reported to Rs 8291.65 crores in the year ended March 2011 as

against Rs 6372.90 crores during the previous year.



Sales 2363.50 1707.95 38 8291.28 6372.87 30

OPM % 68.19 63.64 7 71.65 72.96 -2

PBDT 408.78 304.26 34 1767.07 1435.85 23

PBT 408.78 304.26 34 1767.07 1435.85 23

NP 312.78 240.26 30 1267.07 1045.85 21

Andhra Bank recommends dividend May 05, 2011:

The board of Andhra Bank in its meeting on 05 May 2011 has

recommended dividend at the rate of Rs 5.50 per share (55%) for the year 2010-11.


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LARSEN & TOURBO

L&T bags gas based power plant EPC order from PPN Power May 16, 2011:

Larsen & Toubro (L&T) has received an order valued over Rs 3500 crores

from PPN Power Generating Company for setting up a 3 x 360 MW gas based power plant at

Village Pillaiperumalnallur in Nagapattinam District of Tamil Nadu State, on EPC basis. The

three new units will come up as an expansion project in the same location where PPN Power

Generating Company Limited is presently operating a 330.5 MW Combined Cycle Power Plant

since the year 2001.

The EPC order was bagged by L&T under International Tariff Based

Global Competitive bidding against competition from Domestic and International power plant

equipment manufacturers.

L&T's scope includes design, detailed engineering, supply, installation

and commissioning of the complete power plant on a turnkey basis. The plant will incorporate

state-of-art advanced class Gas turbines and High efficiency Steam turbines from Mitsubishi

Heavy Industries of Japan, which will be procured by L&T.

L&T builds on GSPC order May 18, 2011:

Meanwhile, the BSE Sensex was down 13.37 points, or 0.09%, to

18,120.70. On BSE, 97,000 shares were traded in the counter as against an average daily volume

of 2.94 lakh shares in the past one quarter.

Stock High(26th

April)

Rs. 1523.50 Stock Low Rs. 1508.10

Stock 52week

High(4th November

2010)

Rs.2212 Stock 52week

Low(10th February

2011)

Rs.1463.05

Sliding 12.97% compared with the Sensex's 6.44% fall in past over month. Sliding 11.23% as

against 2% fall in the Sensex over quarter.

Net profit rose 17.25% to Rs 1686.21 crores on 12.74% increase in net sales to Rs 15078.39

crores in Q4 March 2011 over year. Net profit fell 9.54% to Rs 3957.89 crores on 18.60% rise

in net sales to Rs 43495.93 crores in the year ended March 2011 over the year.Equity Capital Rs. 121.92crores Face Value per share Rs.2

Larsen & Toubro said Gujarat State Petroleum Corporation (GSPC)

awarded it the contract in order to meet its hydrocarbon production target from the Krishna

Godavari (KG) basin, off the east coast of India. Larsen & Toubro's net profit rose 10.8% to Rs

840.53 crores on 40.3% surge in net sales to Rs 11321.67 crores Q3 December 2010 over Q3


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December 2009. The company will announce its year ended March 2011 results on Thursday, 19

May 2011.

L&T wins Rs 1450 crores GSPC contract for offshore process platform in KG

Basin May 18, 2011:Larsen & Toubro (L&T) has won a prestigious offshore process platform

contract from Gujarat State Petroleum Corporation (GSPC) valued at Rs 1,450 crores. GSPC

awarded this offshore process cum living quarter's platform project to L&T under international

competitive bidding to meet its challenging target of production of hydrocarbon by July 2013

from KG Basin, off the East Coast of India.

Larsen & Toubro allots shares May 19, 2011:Larsen & Toubro on 18 May 2011 has allotted 4, 12,194 shares to those

grantees who had exercised their options under the company's Employee Stock Ownership /

Option Schemes.


On BSE, 9.57 lakh shares were traded in the counter as against average daily volume of 2.91

lakh shares over the past one quarter. On a consolidated basis, the company's net profit declined

18.25% to Rs 4456.17 crores on 18.47% increase in net sales to Rs 51552.03 crores in the year

ended March 2011 over the year ended March 2010.

As on 31 March 2011, the company's order book stood at Rs 130217

crores, which is almost 3 times its net sales of Rs 43495.93 crores for the year ended March

2011, giving strong revenue visibility. The company's order inflow rose 27% in Q4 March 2011.

The company said the completion of the several expansion projects

underway will strengthen its position of pre-eminence in its various businesses. The company

also said that intense competition and spiraling input costs may exert some pressure on the

operating margin going forward. L&T said it is well positioned to sustain the revenue growth

momentum in the medium term given its excellent execution capabilities, presence in diverse

sectors of the economy, a healthy order book and leadership position it most of the sectors where

it operates.

Larsen & Toubro recommends dividend May 19, 2011:The board of Larsen & Toubro in its meeting on 19 May 2011 has

recommended dividend at the rate of Rs 14.50 per share. Net profit of Larsen & Toubro rose

17.25% to Rs 1686.21 crores in the quarter ended March 2011 as against Rs 1438.10 crores

during the previous quarter. Sales rose 12.74% to Rs 15078.39 crores in the quarter ended

March 2011 as against Rs 13374.89 crores during the previous quarter.


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For the audited full year, net profit declined 9.54% to Rs 3957.89 crores

in the year ended March 2011 as against Rs 4375.52 crores during the previous year. Sales rose

18.60% to Rs 43495.93 crores in the year ended March 2011 as against Rs 36675.15 crores

during the previous year.

In the consolidated full year results, the company reported net profit

after minority interest of Rs 4456.17 crores in the year ended March 2011 as against Rs 5450.74

crores during the previous year. Sales reported to Rs 51552.03 crores in the year ended March

2011 as against Rs 43513.58 crores during the previous year.



Sales 15078.39 13374.89 13 43495.93 36675.15 19

OPM % 15.52 15.34 1 12.93 13.13 -2

PBDT 2574.51 2245.34 15 6170.06 5220.49 18

PBT 2338.74 2129.12 10 5570.84 4805.89 16

NP 1686.21 1438.10 17 3957.89 4375.52 -10

L&T jumps 9% in three days on healthy order book May 20, 2011:


On BSE, 6.47 lakh shares were traded in the counter as against average daily volume of 3.26lakh shares over the past one quarter. The stock hit a high of Rs 1668.90 and a low of Rs 1613 so

far during the day. The stock hit a 52-week high of Rs 2212 on 4 November 2010 and a 52-week

low of Rs 1463.05 on 10 February 2011.

The large-cap stock had underperformed the market over the past one

month till 19 May 2011, declining 6.56% compared with the Sensex's 5.13% fall. The stock had

also underperformed the market in past one quarter, falling 2.74% as against Sensex's 0.39%

decline. The company has an equity capital of Rs 121.92 crores. Face value per share is Rs 2.

Larsen & Toubro (L&T)'s net profit rose 17.3% to Rs 1686.21 crores on 12.7% increase in net

sales to Rs 15078.39 crores in Q4 March 2011 over Q4 March 2010. Net profit of the companyfell 9.5% to Rs 3957.89 crores on 18.6% rise in net sales to Rs 43495.93 crores in the year ended

March 2011 over the year ended March 2010.

On a consolidated basis, the company's net profit declined 18.2% to Rs

4456.17 crores on 18.5% increase in net sales to Rs 51552.03 crores in the year ended March

2011 over the year ended March 2010. As on 31 March 2011, the company's order book stood at


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Rs 130217 crores, which is almost 3 times its net sales of Rs 43495.93 crores for the year ended

March 2011, giving strong revenue visibility. The company's order inflow rose 27% in Q4

March 2011.

HAWKINS COOKERSHawkins Cookers recommends dividend May 27, 2011:

The board of Hawkins Cookers in its meeting on 27 May 2011 has

recommended dividend at the rate of Rs 40 per share. Net profit of Hawkins Cooker rose

23.65% to Rs 9.83 crores in the quarter ended March 2011 as against Rs 7.95 crores during the

previous quarter. Sales rose 27.90% to Rs 103.97 crores in the quarter ended March 2011 as

against Rs 81.29 crores during the previous quarter.

For the audited full year, net profit declined 13.76% to Rs 31.77 crores in the

year ended March 2011 as against Rs 36.84 crores during the previous year. Sales rose 16.10%

to Rs 331.55 crores in the year ended March 2011 as against Rs 285.57 crores during theprevious year.



Sales 103.97 81.29 28 331.55 285.57 16

OPM % 14.52 15.40 -6 14.59 20.01 -27

PBDT 15.20 12.55 21 49.47 57.57 -14

PBT 14.69 12.11 21 47.55 55.88 -15

NP 9.83 7.95 24 31.77 36.84 -14

Hawkins Cooker shoots up after decent quarterly earnings May 27, 2011:The company announced the results during trading hours today, 27 May

2011. Meanwhile, the BSE Sensex was up 219.69 points, or 1.22%, to 18,264.33. On BSE, 1.09

lakh shares were traded in the counter as against average daily volume of 2,865 shares over the

past one quarter.

Stock High(26th

April)

Rs. 1249 Stock Low Rs. 1103

Stock 52week

High(31st December

2010)

Rs.1360 Stock 52week Low(9

February 2011)

Rs.827.05

Rising 3.13% compared with the Sensex's 7.68% fall in past over month. Gaining 29.69% as

against 1.94% falls in the Sensex over quarter.


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