INDIABULLS SECURITIES LTD

FUNDAMENTAL ANALYSIS OF SECURITIES

Presented By:Niharika SinghMBA/4561/08

BIT Noida

Objective of the study

a) Comparatively analyze the different industry performance and selecting the appropriate security.b) Identify the returns of the securities in considering the risk, growth, and other related variables.c) Understand the factor influencing the security prices in different industries.d) Analyzing the environmental factors affects the security prices.e) Assess the future potential of the companies in the industry.f) And aid to investor in assessing the worth of the securities.

SAMPLING DESIGN

Sample Design

   s

Research Methdology

Descriptive ResearchSecondary Data

Industry Company      

     

Steel Industry Tata steel,SAIL,Jindal steel,JSW and Bhushan steel    

IT Industry Wipro,Infosys,Tech Mahindra,3i Infotech,TCS    

Automobile Industry Maruti Suzuki,Hero Honda,Ashok Leyland,M&M,Hindustan motors

Power Industry Reliance power,L&T,Jaiprakash Hydro,NTPC,Tata power  

Pharma Industry Ranbaxy,Cipla,Dr. Reddy,Sunpharmaceutical,Dabur  

Real-estate DLF, Shobha developers,Unitech,Lanco,Brigade ltd    

Cement Industry ACC Ltd,India cement,J.K cement,Ambuja cement,Ultratech Ltd

FUNDAMENTAL ANALYSIS

To analyze the overall economy and securities markets.

To analyze the industry

with in which a particular company operates.

Analysis of the company should be considered.

TYPES OF FUNDAMENTAL ANALYSIS

Economic analysisIndustry analysisCompany analysis

ANALYSIS AND FINDINGS

COMPANY ANALYSIS:

Mean of ProfitVariance of ProfitRisk co-efficient(beta) RATIOS Per Share Ratio Profitability Ratio Leverage Ratio Liquidity RatioBalance Sheet Analysis

 

    Steel Industry  Rs. In crore

Company Tata steel Ltd SAILJindal Steel

LtdBhushan Steel Ltd JSW Steel Ltd

Mean of profit 499 123 5410.6 607 123.18

Variance of profit 6 6.07 7.4 7.1 5.4

Risk co-efficient(beta) 1.4 1.27 1.25 1.6 1.2

RATIOS          

Per Share Ratio          

EPS  64.14 14.81 90.47 19.98 24.81

Dividend Per Share   16.00  3.70 4 2.5 14

Operating Profit Per Share  112.85  27.28 149.12 196.68 179.43

Book value Per Share  296.65  55.69 243.71 382.68 394.99

Profitability Ratio          

Operating Margin  41.94  28.19 42.76 19.98 29.46

Return on long term funds  17.16  44.47 26.6 10.26 19.22

Leverage Ratio          

Total debt/equity  1.07 0.12 0.9 2.84 1.01

Fixed asset turnover ratio 1.2 1.31 0.9 1.44 0.81

Liquidity Ratio          

Current Ratio  3.92 1.73 1.56 1.66 0.58

Inventory Turnover ratio  10.84 8.62 7.01 4.4 9.26

Balance Sheet          

Net Profit  4,687.03 6,119.17  1,536.48  412.79  458.50

Profit before tax(PBT)  7,066.36 11,468.73  1,502.51  538.93  2,484.12

Profit After tax(PAT)  4,447.90  7,310.27  1,392.87 417.69 1,639.05

Steel Industry 

Sales growth of five Steel Company

0.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

2004 2005 2006 2007 2008

Tata steelJSWBhushan Ltd.JindalSail

Automobiles Industry

Sales growth of five Automobile Comapnies

IT INDUSTRY

Sales growth of five IT comapnies

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

2008 2007 2006 2005 2004

Tech mahindraWiproTCSInfosys3i Infotech

Power Industry

Sales growth of five power comapnies

0.005,000.00

10,000.0015,000.0020,000.0025,000.0030,000.0035,000.0040,000.0045,000.00

2008 2007 2006 2005 2004

NTPCL & TJaiprakashReliance powerHydro power

Pharmaceutical Industry

Sales growth of five Pharma companies

Real-estate Industry

Sales growth of five Real-estate companies

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

2008 2007 2006 2005 2005

DLFShobha DevelopersLanco LtdunitechBrigade

Cement Industry

Sales growth of five Pharma comapnies

CONCLUSION

When come to the economic factors the global economies are getting interrelated, the Indian market will no longer be limited to domestic economic situation. As far as the Indian economy is concerned, the GDP is the primary factor.Positive correlation with the Sensex, which directly affects the overall market and followed by other factors.There are many industries and each industries consists of several companies. These companies having different scenario based on current situation of economy.Therefore before investing any industry investor must analyze the industry and company.Here we have compared different seven industries on the basis of different financial terms.

SUGGESTIONS

secrutiny of economy,industries and companies are must.

The investor also should consider the budget decision and present years forecast of different sectors. Comparisons is also necessary because of companies perform well when potential opportunity exists for industry.

Even though the industry may perform well, the companies in the that particular industry may suffer form lack of ability or any other factor, one should scrutinize the performance of the company, in considering importantly, sales growth, leverages, betas, P/E ratio and market to book ratios. .

fundamental analysis even today holds good. It demands, may insist on information about the company. It requires subjecting a company.s performance and its financial statements to in-depth scrutiny. It also calls for the company and industry in which the company operates.