analysis of stock market-manali

8/6/2019 Analysis of Stock Market-manali

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Analysis of Stock Market

1Amity Business School

PPRROOJJEECCTT

OONN

Analysis of stock market

Submitted To- Prof. V.P Kakkar

Submitted By- Manali Somani

A1802010170


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Acknowledgements

I pay my sincere regards to Mr. Arun Chopra, Area Sales Manager,Anand Rathi

for guiding me throughout the project with his valuable insights, and giving me

the opportunity to work on this wonderful project, which helped me to analyze

and interpret the performance of various companies in terms of fundamental

attributes and market sentiments, hone my thinking ability and gain a deeper

insight into their business model. I acknowledge, with due respect, the continuous

guidance he provided without which, the completion of this project work would

not have been possible.

Second most importand person who had helped me completing this project is

Prof. V.P Kakkar who devoted his precious time in guiding me and timely

instructing me.

I am also grateful to the HOD, Finance, Amity Business School, Amity

University, Noida and my faculty guide Prof. S. K. Malhotra, who not only

guided me throughout the project but also provided the much needed inspiration

and motivation.


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Abstract

The aim of this project work is to analyze and present the findings about financial performance

of some Indian companies both on their internal business front and the stock markets. The

objective is to judge their performance and chart out future projections and potentials which in

turn would help to recommend the investors whether to sell, hold or accumulate the stocks of

these companies.

The project included the collection of daily turnover and trading of the companies on the largest

two bourses of India NSE and BSE. The information from these was used to do the Technical

Analysis i.e.to calculate and judge the market sentiment about the companies.

The Balance sheets, P&l accounts and Income statements of the companies were used to do the

Fundamental Analysis to find out the internal story and performance of the company.

Corporate News and other information helped in judging the future growth prospects of the

companies and their prospective effects on the overall market sentiment.

Overall the project was an excellent opportunity to look into the unseen and to gain a lot of

information and knowledge about valuations, business trends, performance and to get a

glimpse of what is to come in the future. Based on the current scenario, an attempt has been

made using modern techniques to forecast the future earnings and value creation of the

researched companies.


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Introduction

Introduction

In general, the financial market divided into two parts, Money market and capital market.

Securities market is an important, organized capital market where transaction of capital is

facilitated by means of direct financing using securities as a commodity. Securities

market can be divided into a primary market and secondary market.

PRIMARY MARKET

The primary market is an intermittent and discrete market where the initially listed shares

are traded first time, changing hands from the listed company to the investors. It refers to

the process through which the companies, the issuers of stocks, acquire capital by

offering their stocks to investors who supply the capital. In other words primary market is

that part of the capital markets that deals with the issuance of new securities. Companies,

governments or public sector institutions can obtain funding through the sale of a new

stock or bond issue. This is typically done through a syndicate of securities dealers. The

process of selling new issues to investors is called underwriting. In the case of a new

stock issue, this sale is called an initial public offering (IPO). Dealers earn a commission

that is built into the price of the security offering, though it can be found in the

prospectus.

SECONDARY MARKET

The secondary market is an on-going market, which is equipped and organized with a

place, facilities and other resources required for trading securities after their initial


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offering. It refers to a specific place where securities transaction among many and

unspecified persons is carried out through intermediation of the securities firms, i.e., a

licensed broker, and the exchanges, a specialized trading organization, in accordance with

the rules and regulations established by the exchanges.

A bit about history of stock exchange they say it was under a tree that it all started in

1875.Bombay Stock Exchange (BSE) was the major exchange in India till 1994.National

Stock Exchange (NSE) started operations in 1994.

NSE was floated by major banks and financial institutions. It came as a result of Harshad

Mehta scam of 1992. Contrary to popular belief the scam was more of a banking scam

than a stock market scam. The old methods of trading in BSE were people assembling on

what as called a ring in the BSE building. They had a unique sign language to

communicate apart from all the shouting. Investors weren't allowed access and the system

was opaque and misused by brokers. The shares were in physical form and prone to

duplication and fraud.

NSE was the first to introduce electronic screen based trading. BSE was forced to follow

suit. The present day trading platform is transparent and gives investors prices on a real

time basis. With the introduction of depository and mandatory dematerialization of shareschances of fraud reduced further. The trading screen gives you top 5 buy and sell quotes

on every scrip.

A typical trading day starts at 10 ending at 3.30. Monday to Friday. BSE has 30 stocks

which make up the Sensex .NSE has 50 stocks in its index called Nifty. FII s Banks,

financial institutions mutual funds are biggest players in the market. Then there are the

retail investors and speculators. The last ones are the ones who follow the market

morning to evening; Market can be very addictive like blogging though stakes are higher

in the former.

HistoryofIndian StockExchange:


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The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It traces its

history to the 1850s, when stockbrokers would gather under banyan trees in front of

Mumbais Town Hall. The location of these meetings changed many times, as the

number of brokers constantly increased. The group eventually moved to Dalal Street in

1874 and in 1875 became an official organization known as The Native Share & Stock

Brokers Association. In 1956, the BSE became the first stock exchange to be recognized

by the Indian Government under the Securities Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a

means to measure overall performance of the exchange. In 2000 the BSE used this index

to open its derivatives market, trading Sensex futures contracts. The development of

Sensex options along with equity derivatives followed in 2001 and 2002, expanding the

BSEs trading platform.

Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to

an electronic trading system in 1995. It took the exchange only fifty days to make this

transition.

Capital market reforms in India and the launch of the Securities and Exchange Board of

India (SEBI) accelerated the integration of the second Indian stock exchange called the

National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has

become the largest stock exchange in India.

Three segments of the NSE trading platform were established one after another. The

Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital

Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options

segment began operating in 2000. Today the NSE takes the 14th position in the top 40

futures exchanges in the world.

In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX

Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified


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index of 50 stocks from 25 different economy sectors. The Indices are owned and

managed by India Index Services and Products Ltd (IISL) that has a consulting and

licensing agreement with Standard & Poors.

In 1998, the National Stock Exchange of India launched its web-site and was the first

exchange in India that started trading stock on the Internet in 2000. The NSE has also

proved its leadership in the Indian financial market by gaining many awards such as Best

IT Usage Award by Computer Society in India (in 1996 and 1997) and CHIP Web

Award by CHIP magazine (1999).

ORIGIN OF INDIAN STOCK MARKET

The origin of the stock market in India goes back to the end of the eighteenth century

when long-term negotiable securities were first issued. However, for all practical

purposes, the real beginning occurred in the middle of the nineteenth century after the

enactment of the companies Act in 1850, which introduced the features of limited

liability and generated investor interest in corporate securities.

An important early event in the development of the stock market in India was the

formation of the native share and stockbrokers 'Association at Bombay in 1875, the

precursor of the present day Bombay Stock Exchange. This was followed by the

formation of associations/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras

(1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant

periods to recede into oblivion during depressing times subsequently.

Stock exchanges are intricacy inter-woven in the fabric of a nation's economic life.

Without a stock exchange, the saving of the community- the sinews of economic progress

and productive efficiency- would remain underutilized. The task of mobilization and

allocation of savings could be attempted in the old days by a much less specialized

institution than the stock exchanges. But as business and industry expanded and the

economy assumed more complex nature, the need for 'permanentfinance' arose.


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Entrepreneurs needed money for long term whereas investors demanded liquidity the

facility to convert their investment into cash at any given time. The answer was a ready

market for investments and this was how the stock exchange came into being.

Stock exchange means any body of individuals, whether incorporated or not, constituted

for the purpose of regulating or controlling the business of buying, selling or dealing in

securities. These securities include:

(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like

nature in or of any incorporated company or other body corporate;

(ii) Government securities; and

(iii) Rights or interest in securities.

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd

(NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock

Exchanges. However, the BSE and NSE have established themselves as the two leading

exchanges and account for about 80 per cent of the equity volume traded in India. The

NSE and BSE are equal in size in terms of daily traded volume. The average daily

turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore

in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has

around 1500 shares listed with a total market capitalization of around Rs 9, 21,500 crore.

The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,

68,000 crore. Most key stocks are traded on both the exchanges and hence the investor

could buy them on either exchange. Both exchanges have a different settlement cycle,

which allows investors to shift their positions on the bourses. The primary index of BSE

is BSE Sensex comprising 30 stocks. NSE has the S&P NSE 50 Index (Nifty) which

consists of fifty stocks. The BSE Sensex is the older and more widely followed index.


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Both these indices are calculated on the basis of market capitalization and contain the

heavily traded shares from key sectors. The marketsare closed onSaturdaysand

Sundays. Both the exchanges have switched over from the open outcry trading system to

a fully automated computerized mode of trading known as BOLT (BSE on Line Trading)

and NEAT (National Exchange Automated Trading) System.

It facilitates more efficient processing, automatic order matching, faster execution of

trades and transparency; the scrip's traded on the BSE have been classified into 'A', 'B1',

'B2', 'C', 'F' and 'Z' groups. The 'A' group shares represent those, which are in the carry

forward system (Badla). The 'F' group represents the debt market (fixed income

securities) segment. The 'Z' group scrip's are the blacklisted companies. The 'C' group

covers the odd lot securities in 'A', 'B1' & 'B2' groups and Rights renunciations. The keyregulator governing Stock Exchanges, Brokers, Depositories, Depository participants,

Mutual Funds, FIIs and other participants in Indian secondary and primary market is the

Securities and Exchange Board of India (SEBI) Ltd.

BriefHistoryofStockExchanges

Do you know that the world's foremost marketplace New York Stock Exchange (NYSE),

started its trading under a tree (now known as 68 Wall Street) over 200 years ago?Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace

back its origin to as far as 125 years when it started as a voluntary non-profit making

association.

News on the stock market appears in different media every day. You hear about it any

time it reaches a new high or a new low, and you also hear about it daily in statements

like 'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are

important. Stocks of public limited companies are bought and sold at a stock exchange.

But what really are stock exchanges? Known also as the stock market or bourse, a stock

exchange is an organized marketplace for securities (like stocks, bonds, options) featured

by the centralization of supply and demand for the transaction of orders by member

brokers, for institutional and individual investors.


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The exchange makes buying and selling easy. For example, you don't have to actually go

to a stock exchange, say, BSE - you can contact a broker, who does business with the

BSE, and he or she will buy or sell your stock on your behalf.

MarketBasics

Electronictrading

Electronic trading eliminates the need for physical trading floors. Brokers can trade from

their offices, using fully automated screen-based processes. Their workstations areconnected to a Stock Exchange's central computer via satellite using Very Small Aperture

Terminus (VSATs). The orders placed by brokers reach the Exchange's central computer

and are matched electronically.

Exchangesin India

The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) are the

country's two leading Exchanges. There are 20 other regional Exchanges, connected viathe Inter-Connected Stock Exchange(ICSE). The BSE and NSE allow nationwide trading

via their VSAT systems.

Index

An Index is a comprehensive measure of market trends, intended for investors who are

concerned with general stock market price movements. An Index comprises stocks that

have large liquidity and market capitalization. Each stock is given a weight age in theIndex equivalent to its market capitalization. At the NSE, the capitalization of NIFTY

(fifty selected stocks) is taken as a base capitalization, with the value set at 1000.

Similarly, BSE Sensitive Index or Sensex comprises 30 selected stocks. The Index value

compares the day's market capitalization vis--vis base capitalization and indicates how

prices in general have moved over a period of time.


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Execute an order

Select a broker of your choice and enter into a broker-client agreement and fill in the

client registration form. Place your order with your broker preferably in writing. Get a

trade confirmation slip on the day the trade is executed and ask for the contract note at

the end of the trade date.

Need a broker

As per SEBI (Securities and Exchange Board of India.) regulations, only registered

members can operate in the stock market. One can trade by executing a deal only through

a registered broker of a recognized Stock Exchange or through a SEBI-registered sub-

broker.

Contract note

A contract note describes the rate, date, time at which the trade was transacted and the

brokerage rate. A contract note issued in the prescribed format establishes a legally

enforceable relationship between the client and the member in respect of trades stated in

the contract note. These are made in duplicate and the member and the client both keep a

copy each. A client should receive the contract note within 24 hours of the executed

trade. Corporate Benefits/Action.

Split

A Split is book entry wherein the face value of the share is altered to create a greater

number of shares outstanding without calling for fresh capital or altering the share capital

account. For example, if a company announces a two-way split, it means that a share of

the face value of Rs 10 is split into two shares of face value of Rs 5 each and a person

holding one share now holds two shares.

BuyBack


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As the name suggests, it is a process by which a company can buy back its shares from

shareholders. A company may buy back its shares in various ways: from existing

shareholders on a proportionate basis; through a tender offer from open market; through a

book-building process; from the Stock Exchange; or from odd lot holders.

A company cannot buy back through negotiated deals on or off the Stock Exchange,

through spot transactions or through any private arrangement.

Settlementcycle

The accounting period for the securities traded on the Exchange. On the NSE, the cycle

begins on Wednesday and ends on the following Tuesday, and on the BSE the cycle

commences on Monday and ends on Friday. At the end of this period, the obligations of

each broker are calculated and the brokers settle their respective obligations as per the

rules, bye-laws and regulations of the Clearing Corporation. If a transaction is entered on

the first day of the settlement, the same will be settled on the eighth working day

excluding the day of transaction. However, if the same is done on the last day of the

settlement, it will be settled on the fourth working day excluding the day of transaction.

Rolling settlement

The rolling settlement ensures that each day's trade is settled by keeping a fixed gap of a

specified number of working days between a trade and its settlement. At present, this gap

is five working days after the trading day. The waiting period is uniform for all trades. In

a Rolling Settlement, all trades outstanding at end of the day have to be settled, which

means that the buyer has to make payments for securities purchased and seller has to

deliver the securities sold. In India, we have adopted the T+5 settlement cycle, which

means that a transaction entered into on Day 1 has to be settled on the Day 1 + 5 working

days, when funds pay in or securities pay out takes place.


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Stock& Exchange Board ofIndia

REGULATION OF BUSINESS IN THE STOCK EXCHANGES

Under the SEBI Act, 1992, the SEBI has been empowered to conduct inspection of stockexchanges. The SEBI has been inspecting the stock exchanges once every year since

1995-96. During these inspections, a review of the market operations, organizational

structure and administrative control of the exchange is made to ascertain whether:

y the exchange provides a fair, equitable and growing market to investors

y the exchange's organization, systems and practices are in accordance with the

Securities Contracts (Regulation) Act (SC(R) Act), 1956 and rules framed there

under

y the exchange has implemented the directions, guidelines and instructions issued

by the SEBI from time to time

y The exchange has complied with the conditions, if any, imposed on it at the time

of renewal/ grant of its recognition under section 4 of the SC(R) Act, 1956.

During the year 1997-98, inspection of stock exchanges was carried out with a special

focus on the measures taken by the stock exchanges for investor's protection. Stock

exchanges were, through inspection reports, advised to effectively follow-up and redress

the investors' complaints against members/listed companies. The stock exchanges were

also advised to expedite the disposal of arbitration cases within four months from the date

of filing.

During the earlier years' inspections, common deficiencies observed in the functioning of

the exchanges were delays in post trading settlement, frequent clubbing of settlements,

delay in conducting auctions, inadequate monitoring of payment of margins by brokers,

non-adherence to Capital Adequacy Norms etc. It was observed during the inspections

conducted in 1997-98 that there has been considerable improvement in most of the areas,

especially in trading, settlement, collection of margins etc.

FACTORS AFFECTING STOCK MARKET:


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Stock market is something where you can never foretell what is going to happen in the

market. You might get huge gain or incur losses when the stock market crashes. There

are many factorsaffecting share prices. It is very hard to say just one or two factors

affect the share prices. So, let us have a look at the factors that affect share prices.

Demand and Supply

This is the first factor that affects share prices. When you get to see that more people are

buying stocks, then there is an increase in the price of that particular stock. On the other

hand price of stock falls when more people are selling their stocks. So it is very difficult

to predict the Indian stockmarket. This is the main reason why you need to get in touch

with a good stock market consultant. There is consultancy for you which can help you a

lot on choosing the right stocks for you.

Marketcap

It is a very big mistake when you try to guess a companys worth from the price of a

stock. You should know that the more important is the market capitalization of the

particular company. This helps to determine the worth of a company. So market cap

serves as an important use to determine share prices.

Earning pershareNow when it comes to the term, earning per share, it means the profit that a particular

company has made per share and that too on the last quarter. If you need to know the

health of the company then this is the most important factor. Whats more earning per

share also influences the buying tendency in the market that results in the increase of the

particular stock price. This is the reason why it is very important for every public

company to bring out the quarterly report. So when you wish to make a profitable

investment, then the best thing for you would be to keep a good watch on the quarterly

reports of different companies. This is very important before you wish to invest your hard

earned money in the share market.

Impactofnews

News is another factor that affects the share price. When there is positive news about a


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particular stock or company, people try to invest all their money in that particular stock or

market. This leads to increase in the interest of buying the stock. But there are many

circumstances where news could also bring a negative effect where it could ruin the

prospect of the particular stock. So it is very important to know the overall news of a

stock or company where you can invest your money so that it grows within a very short

period of time.

There are many things that you need to consider when you go for investing your hard

earned money in the stock market. You should never be in a haste to invest your money

in the stock market. You should always get in touch with a good stockmarket

consultancy where it can give you some share tips. They are the one who can give you

advice where to invest your money and where not to. They know to distinguish the goodstock from the bad ones.


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INDIAN STOCK MARKET AND ECONOMIC GROWTH:

Growth Prospects

The performance of the Indian economy in 2009/10 greatly exceeded expectations. The

farm sector which was expected to contract showed resilience, growing by 0.2 per cent

despite the weak South West monsoon. The non farm sector also did well. It is the

assessment of the Council that the Indian economy would grow at 8.5 per cent in 2010/11

and 9.0 per cent in 2011/12. In the current fiscal year, agriculture will grow at 4.5 per

cent, industry at 9.7 per cent and services at 8.9 per cent.

Global Prospects

The global economic and financial situation is recovering slowly. The large fiscal deficits

and high debt ratios coupled with slow economic growth have created unsettling

conditions for business and have potential for causing great volatility in financial

markets. It is hard to visualize strong economic growth in the advanced economies in

2010 and to a large extent in 2011. The implications of this, for Indias strategy to return

to the 9.0 per cent growth trajectory, are that public policy must promote businessconfidence and facilitate increased investment.

Structural Factors

In 2008/09 the investment rate fell on account of the drawdown of inventories. This trend

has reversed and the Council expects the investment rate to be higher at 36 per cent (of

GDP) in 2009/10, rising to 37 per cent in 2010/11 and 38.4 per cent in 2011/12. Similarly

we expect the domestic savings rate to pick up and reach 33.4 per cent in 2009/10, 34.3per cent in 2010/11 and 35.5 per cent in 2011/12. These rates should enable the economy

to grow in a sustained manner at 9.0 per cent.

Private corporate investment and total investment in fixed assets is expected to recover

strongly but will not reach the previous high levels. Government Final Consumption


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Expenditure to GDP which hit a peak of 12.3 per cent in 2009/10 is expected to fall to

10.3 per cent in 2011/12. On the contrary, Private Final Consumption Expenditure which

declined in 2008/09 and 2009/10 is expected to increase in the current and next fiscal

year. Since 2001-02 the progressive decline in the Private Final Consumption

Expenditure has been accompanied by a matching increase in the investment expenditure

component of GDP.

Sectoral Growth Projections

In the backdrop of a weak South West (SW) monsoon in 2009, the Council had expected

the farm sector GDP to decline by 2 per cent. However, the actual loss in farm sector

output was less. The strength in horticulture, animal husbandry and fisheries, as well as

higher cotton output, helped farm sector GDP to ultimately register a marginally positive

growth of 0.2 per cent.

On the basis of a normal SW monsoon forecast by the Meteorological Department, one

may reasonably expect a strong rebound in crop output in Kharif and Rabi in 2010/11.

The better seed and fertilizer availability and the construction of a large number of water

harvesting structures through the MNREGA lend strength to these expectations.

Moreover, the expansion in horticulture and animal husbandry and a low base effectshould generate a farm sector GDP growth of around 4.5 per cent in the current fiscal.

Industrial sector recovery became evident in June 2009 and by August 2009 the General

Index of Industrial Production (IIP) registered double digit growth rate driven by similar

growth rates in output in the manufacturing and mining sector. The service sector has

also shown strong recovery with GDP originating in the important sub-sector of trade,

hotels, restaurant, transport & communication surging in the second half of 2009/10.

The impact of the civil service pay hike and the arrears lifted growth of the community

personal services sub-sector in the first half, but eased up in the second. Export related

service activity (software and Business Process Outsourcing) was sluggish throughout

2009/10 but was more than offset by the recovery in domestic-oriented service activity.

Overall, non-farm sector GDP grew by 8.8 per cent in 2009/10.


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In 2009/10 the mining sector output grew at 10 per cent but a slowdown is expected in

2010/11 with a projected growth of 8.0 per cent in both output and GDP arising in the

sector. Manufacturing output growth in 2009/10 was strong in all the quarters, especially

in the case of capital goods and durable consumer goods. The only exception to this was

non-durable consumer goods which were impacted by poor export growth and a lower

output of sugar. Even though the manufacturing sector has recorded strong growth rate in

April and May 2010, we expect this to ease as the base effect wears off. The projected

growth rate in the manufacturing sector and the general index (IIP) is expected at 10 per

cent in 2010/11.

The expected expansion of investment in physical infrastructure, including housing will

drive the construction sector. Accordingly, the GDP arising in the construction sub-sectorwould rise by 10 per cent in 2010/11, which is likely to inch up to 11 per cent in 2011/12.

In the trade, hotel, restaurants, transport & communication sub sector, growth picked

up in the last two quarters of the year. We expect this trend to be reinforced with 10 per

cent growth in both 2010/11 as well as 2011/12. There will be no contribution to

expansion from civil service pay in the current year but the private sector component of

the sub-sector community and personnel services will continue to register strong

expansion in line with the rest of the economy. Software and BPO activity is expected to

expand significantly in 2010/11, both in the domestic and export sectors. Alongwith

steady expansion in the financial industry we expect this sub-sector to record growth of

9.5 per cent in 2010/11 which will rise further in 2011/12.

Overall, we expect GDP arising in the industrial sector to expand 9.6 per cent in 2010/11,

rising to 10.3 per cent in 2011/12. The expansion in the services sector is expected to

approach 9 per cent in 2010/11 and inch up to 9.6 per cent in 2011/12. Over all, the non-

farm sector is expected to grow by 9.2 per cent in 2010/11 and 9.8 per cent in 2011/12.

Trade & External Sector

According to the DGCI&S report the merchandise trade exports touched $176.6 billion

in 2009/10 which was 4.7 per cent less than 2008/09. Engineering and electronic goods


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were the hardest hit declining by more than 20 per cent. Because of currency fluctuations,

the rupee value of exports showed practically no decline in 2009/10. The value of

merchandise imports in 2009/10 in dollar terms was 8.2 per cent lower at $278.7 billion

and 4 per cent lower in rupee terms.


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Research Model - CANSLIM

CANSLIM model is a method for selecting and analyzing the performance of a company over

various parameters. This model has been used for the purpose of research. The full form of the

model is as follows:

C Current quarterly earnings.

A Annual earning increases over the last years.

N New products, management, new highs and lows.

S Small supply and large demand i.e. future profitability.

L Leaders and laggard stocks. (using relative index as a guide).

I Institutional support and sponsorship.

M Determining market direction by reviewing market averages daily.


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Research Methodology

The research has been done by selecting the companies which are the representative of a

particular sector on the basis of overall market capitalization, stocks having the highest liquidity

and turnover both on the NSE and BSE. A caution was thus taken and by thorough approach the

best companies were selected so as to portray a genuine picture of the sector. With the help of

SPSS Package and using the quantitative techniques, the statistical analysis has been done.

The following analysis has been done for all the 8 companies:

1. Fundamental analysis.

2. Ratio analysis.

3. Future growth and earnings analysis.

4. Statistical analysis.

5. Technical analysis.


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Companies and Respective Sector

The 8 companies from the most important sectors which form the

foundation of the economy have been studied and analyzed. They are:

1. Bharti Airtel Telecommunications.

2. DLF- Realty.

3. HUL FMCG.

4. ICICI Bank Banking.

5. Infosys Technologies IT.

6. Larsen &Toubro Capital Goods & Engineering.

7. Reliance Infrastructure Power and Energy.

8. RIL Oil and Gas.


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Company analysis

The analysis of each company has been done in the following heads and

sequence:

1. Score card.

2. Stock price movements.

3. Company profile.

4. Business.

5. Shareholding pattern.

6. Financials.

7. Future growth potential.

8. Mutual funds invested in the company.

9. Valuations and risks.

10. Rating.


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Bharti Airtel Limited

SECTOR: TELECOMMUNICATIONS

SCORE CARD:

Standard Deviation 37.5

Institutional Holding (%) 29.56

Dividend Yield 0.25

P/E 19.83

Market Capitalization(Rs Cr) 1530404.63

CMP(Rs.) 747.95

52 week - high (400.10)

52 week - low (260.85)


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STOCK PRICE MOVEMENTS (16TH

MAY TO 4th

JULY):

Face value (Rs.) 10.00


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The company is having a Customer Base comprising of 64,370,434 GSM mobile and

2,319,509 telemedia customers (Status as at month ended April 30, 2008).The mobile

business provides mobile & fixed wireless services using GSM technology across 23

telecom circles while the Airtel Telemedia Services business offers broadband &

telephone services in 94 cities. The Company compliments its mobile and broadband &

telephone services with national and international long distance services. It has over

35,016 route kilometers of optic fibre on its national long distance network. For

international connectivity to east, it has a submarine cable landing station at. For

international connectivity to the west, the Company is a member of the South East Asia-

Middle East-Western Europe 4 (SEA-ME-WE-4) consortium along with 15 other

global telecom operators.

SHAREHOLDING PATTERN:

ParticularsNo. of

Shares(Mn)%

Holdings

Total Promoter Holdings 2,593.41 68.3

Total Govt Holding (Promoter + Non Promoter) 0.00 0.0

Total Domestic Institutions (Banks/ FI + MF / UTI) 330.61 8.7

Total Foreign Holdings (FII+NRI holdings) 663.93 17.5

Total Non Promoter Corporate Holdings 140.76 3.7

Total Public & Others (Individuals + HUF + Clearing members) 68.82 1.8

Total 3,797.53 100

FINANCIALS:

(Rs. in Million)

Particulars Mar 2010 Mar 2009 Mar 2008 Mar 2007 Mar 2006

No of Months 12 12 12 12 12

Gross Sales 356095.41 340142.90 257035.10 177944.34 112286.81

Less :Inter divisional transfers 0 0 0 0 0

Less: Sales Returns 0 0 0 0 0

Less: Excise 0 0 0 0 0


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Net Sales 356095.41 340142.90 257035.10 177944.34 112286.81

EXPENDITURE :

Increase/Decrease in Stock -147.86 -1126.91 -1214.47 -318.65 129.85

Raw Materials Consumed 351.08 1250.96 1552.97 539.50 544.19

Power & Fuel Cost 22650.03 21732.94 10451.67 6587.87 3259.43

Employee Cost 14072.38 14045.45 13065.71 11020.21 7550.50

Other Manufacturing Expenses 60867.79 65400.53 55421.83 41693.00 28390.96

General and Administration

Expenses52952.84 45176.27 20974.18 13160.94 8441.64

Selling and Distribution Expenses 24049.06 21763.99 18135.26 10691.66 8013.61

Miscellaneous Expenses 42870.82 57409.04 34362.71 22552.28 16291.19

Expenses Capitalised 0 0 0 0 0

Total Expenditure 217666.15 225652.27 152749.86 105926.80 72621.36

PBIDT (Excl OI) 138429.26 114490.63 104285.24 72017.54 39665.45

Other Income 12287.27 5251.35 3599.07 1484.91 940.73

Operating Profit 150716.53 119741.98 107884.31 73502.46 40606.18

Interest 2744.84 4275.62 3832.36 2804.04 2278.01

PBDT 147971.70 115466.36 104051.96 70698.42 38328.17

Depreciation 40979.21 33850.99 34326.53 24684.70 15470.21

Profit Before Taxation &

Exceptional Items106992.49 81615.37 69725.42 46013.71 22857.96

Exceptional Income / Expenses 0 0 0 0 0

Profit Before Tax 106992.49 81615.37 69725.42 46013.71 22857.96

Provision for Tax 12730.94 4176.98 7283.50 5681.45 2737.16

PAT 94261.55 77438.39 62441.92 40332.27 20120.79

Adj to Profit After Tax 0 55.03 -222.64 -59.13 0

Profit Balance B/F 185028.29 117972.16 55339.25 14563.81 -7864.33

Appropriations 279289.84 195465.57 117558.54 54836.94 12256.46

Equity Dividend (%) 20.00 20.00 0 0.00 0.00

Earnings Per Share (Rs.) 24.82 40.79 32.90 21.27 10.62

Book Value (Rs.) 96.24 145.01 106.34 60.17 38.67


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FUTURE GROWTH POTENTIAL:

The growing population of the country along with the betterment in earnings of the

people has resulted in a boom for the telecommunications industry as there is widespread

need and application of these services. The company has been growing at an unabated

pace for the last three years and hopes to carry on the momentum. The company was

recently in talks with the MTN Group of South Africa for a possible merger but the talks

fell through as there was the offer of reverse merger and acquisition by MTN which was

not acceptable to the company. The company is however open to alliances and has a

strategic alliance with SingTel. The investment made by SingTel is one of the largest

investments made in the world outside Singapore, in the company. The companys

mobile network equipment partners include Ericsson and Nokia. In the case of thebroadband and telephone services and enterprise services (carriers), equipment suppliers

include Siemens, Nortel, Corning, among others. The Company also has an information

technology alliance with IBM for its group-wide information technology requirements

and with Nortel for call center technology requirements. The call center operations for the

mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech &

Mphasis.

MUTUAL FUNDS INVESTED IN THE COMPANY:


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Infosys Technologies Limited

SECTOR: INFORMATION TECHNOLOGY

SCORE CARD:



Dividend Yield 2.07

P/E 25.76


CMP(Rs.) 1705.45

52 week high (3493.95)

52 week low (2660.55)


31/69




MAY TO 4th

JULY):

Face Value (Rs.) 5.00


32/69



COMPANY PROFILE:

Infosys Technologies Ltd. (NASDAQ: INFY) was started in 1981 by seven people with US$ 250.

Today, it is a global leader in the "next generation" of IT and consulting with revenues of over

US$ 4 billion. Infosys has a global footprint with over 40 offices and development centers in

India, China, Australia, the Czech Republic, Poland, the UK, Canada and Japan. Infosys has over

91,000 employees. Infosys takes pride in building strategic long-term client relationships. Over

97% of their revenues come from existing customers. Fortune ranked Infosys as 10th among Top

Companies for Leaders 2007.

Infosys defines designs and delivers technology-enabled business solutions that help Global

2000 companies win in a Flat World. Infosys also provides a complete range of services by

leveraging the domain and business expertise and strategic alliances with leading technology

providers.

BUSINESS:

Infosys' service offerings span business and technology consulting, application services,

systems integration, product engineering, custom software development, maintenance, re-

engineering, independent testing and validation services, IT infrastructure services and

business process outsourcing.The refreshing approach of the company to consulting has

been recognized by the industry and leading business publications. In July 2007,

Consulting Magazine named Romil Bahl, managing director and co-founder of Infosys

Consulting, Inc., among its list of 2007 Annual Top 25 Consultants. In January 2006,

Forrester Research named Infosys among the leading Indian IT Services companies

offering consulting services. The report said: "Infosys is best positioned to offer high-

value management consulting skills."


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ParticularsNo. of

Shares(Mn)%

Holdings

Total Promoter Holdings 92.09 16.0






Total 574.15 100

FINANCIALS:

(Rs. in Million)


No of Months 12 12 12 12 12

Operating Income 253850.00 211400.00 202640.00 156480.00 131490.00


Less: Excise 0 0 0 0 0

Net Sales 253850.00 211400.00 202640.00 156480.00 131490.00

EXPENDITURE :

Stock Adjustments 0 0 0 0 0

Raw Materials Consumed 0 0 0 0 0

Power & Fuel Cost 1420.00 1220.00 1250.00 1060.00 880.00

Employee Cost 124480.00 103400.00 98150.00 77600.00 62060.00

Cost of Software developments 25030.00 18050.00 14810.00 12130.00 10820.00

Operating Expenses 8400.00 6260.00 9120.00 7080.00 7130.00


Expenses9300.00 7580.00 8170.00 7360.00 6510.00

Selling and Marketing Expenses 1030.00 870.00 1060.00 980.00 1320.00


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PBIDT (Excl OI) 84150.00 73590.00 65340.00 49620.00 42240.00

Other Income 11470.00 9220.00 8760.00 6850.00 3750.00


Interest 10.00 20.00 20.00 10.00 10.00

PBDT 95610.00 82790.00 74080.00 56460.00 45980.00

Depreciation 7400.00 8070.00 6940.00 5460.00 4690.00






PAT 64430.00 57550.00 58190.00 44700.00 37770.00

Adj to Profit After Tax 0 0 -10.00 0 -50.00

Profit Balance B/F 138060.00 103050.00 66420.00 48440.00 21950.00

Appropriations 202490.00 161080.00 124600.00 93140.00 59730.00

Equity Dividend (%) 1200.00 500.00 470.00 665.00 230.00


Book Value (Rs.) 426.85 383.90 311.35 235.84 195.14


Infosys' services and business solutions are strengthened by alliances with leading

technology partners. It recommends technologies to the client based on what is best for

the client. In a marketing alliance, Infosys and the alliance partner jointly deliver business

solutions which leverage Infosys' industry, functional and technical expertise, Infosys'

Global Delivery Model and the alliance partner's technology and services. In a

technology alliance, Infosys works with an alliance partner to build business and

technical competency in the alliance partner's technology through training, engagement


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with the alliance partner's technical support and development teams and the development

of tools and methodologies at Infosys' Centers of Excellence.


Scheme Name Market Val (In Crs.) AUM(In Crs.) Hold Per

HDFC Top 200(G) 576.95 10644.84

HDFC Equity(G) 343.80 9419.27

Franklin India Bluechip(G) 293.14 3904.05

HDFC Prudence(G) 220.09 6199.86

Franklin India Flexi Cap(G) 180.28 2002.91

Morgan Stanley Growth(G) 139.10 1543.89

HDFC TaxSaver(G) 129.38 3117.54

Franklin India Prima Plus(G) 120.05 1744.32

HDFC Growth(G) 100.23 1310.22

HDFC MIP-LTP(G) 89.50 9728.62

Franklin Infotech(G) 60.02 130.24

HDFC Long Term Adv(G) 59.57 929.36

HSBC Equity(G) 57.66 902.57

Franklin India Taxshield(G) 57.30 828.81

Axis Equity Fund(G) 52.18 720.73

Kotak 50(G) 48.79 862.02

HDFC Long Term Equity(G) 47.34 756.27


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Kotak Opportunities(G) 43.21 925.19

Nifty BeES 43.20 538.03

HDFC Core & Satellite(G) 36.20 417.01

VALUATIONS AND RISKS:

RATING:


37/69



Hindustan Unilever Limited

SECTOR: FAST MOVING CONSUMER GOODS

SCORE CARD:



Dividend Yield 1.93

P/E 31.58


CMP(Rs.) 208.55

52 week - high (329.45)

52 week low (249.90)


38/69




MAY TO 27TH

JUNE):

COMPANY PROFILE:

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with

leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread

across 20 distinct consumer categories, touch the lives of two out of three Indians. With 35

Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care. H UL is

also one of the country's largest exporters; it has been recognized as a Golden Super Star

Trading House by the Government of India. The Parent company, Unilever, holds 52.10% of

the equity. It is a Fortune 500 transnational which sells Foods and Home and Personal Care

brands in about 100 countries worldwide.

HUL has traditionally been a company, which incorporates latest technology in all its

operations.



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BUSINESS:

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,

Kwality Wall's are household names across the country and span many categories -

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary

products. They are manufactured over 40 factories across India. The operations involve

over 2,000 suppliers and associates. HUL's distribution network comprises about 4,000

redistribution stockists, covering 6.3 million retail outlets reaching the entire urban

population, and about 250 million rural consumers.

Major Brands of HUL:

Personal wash: Lux, Breeze, Lifebuoy, Dove, Liril, Pears, Hamam, Rexona.

Laundry: Surf Excel, Rin, Wheel

Skin Care: Fair &Lovely, Ponds, Vaseline

Hair Care: Sunsilk Naturals, Clinic

Oral Care: Pepsodent, Closeup

Deodorants: Axe, Rexona

Colour Cosmetics: Lakme

Ayurvedic: Ayush

Tea: Brooke Bond, Lipton

Coffee: Brooke Bond Bru

Foods: Kissan, Annapurna, Knorr

Ice Cream: Kwality Walls


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ParticularsNo. of

Shares(Mn)

%

Holdings







Total 2,159.47 100

(Rs. in Million)

Particulars Mar 2010 Mar 2009 Dec 2007 Dec 2006 Dec 2005

No of Months 12 15 12 12 12

Gross Sales 182202.70 216495.10 147150.97 130350.63 119755.27



Less: Excise 6964.70 14101.80 10396.64 9316.77 9149.81

Net Sales 175238.00 202393.30 136754.33 121033.86 110605.46

EXPENDITURE :

Increase/Decrease in Stock -227.20 -4215.60 -1444.01 -1159.69 481.22


Power & Fuel Cost 2443.40 3013.70 1988.85 1807.94 1687.44

Employee Cost 9203.70 11387.00 7579.13 6326.01 5853.92



Expenses

3977.00 5074.10 3400.21 3701.99 3713.57





PBIDT (Excl OI) 25058.50 26519.00 18778.16 16318.92 14328.55


41/69



Other Income 3922.30 5938.40 4323.69 3706.86 3152.63


Interest 69.80 253.20 254.97 107.34 191.93

PBDT 28911.00 32204.20 22846.88 19918.44 17289.25

Depreciation 1840.30 1953.00 1383.59 1301.64 1244.53






PAT 21026.80 25007.10 17431.20 15396.71 13545.08

Adj to Profit After Tax 0 0 0 0 0


Appropriations 26783.60 26939.50 27291.24 25060.31 20529.04

Equity Dividend (%) 650.00 750.00 900.00 600.00 500.00


Book Value (Rs.) 11.82 9.44 6.58 12.31 10.45


Home to over 700 million people, rural India comprises not only over 70% of India's billion-

strong population, but also over 12% of the world's population. The rural population already

accounts for substantial consumption of Fast Moving Consumer Goods and also consumer

durables. About 50% of the sales of soaps & detergents are generated in rural India. Similarly,

almost half the demand for black & white television sets, pressure cookers, table fans, sewing

machines also comes from there.

But the potential is even larger, both in terms of consumption and penetration. The fact that

70% of the population accounts for only 50% of even relatively well-penetrated categories, like

soaps & detergents, indicates the enormous scope of consumption-led growth in these

categories. Therefore such categories will derive growth out of increased usage. In categories,

which are relatively less penetrated, like personal products, rural


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Hindustan Unilever's distribution network is recognized as one of its key strengths. Its focus is

not only to enable easy access to our brands, but also to touch consumers with a three-way

convergence - of product availability, brand communication, and higher levels of brand

experience. HUL's products, manufactured across the country, are distributed through a

network of about 7,000 redistribution stockists covering about one million retail outlets. The

distribution network directly covers the entire urban population.



HDFC Top 200(G) 140.51 10644.84

DSPBR Top 100 Equity-Reg(G) 94.85 3020.67


DSPBR Equity-Reg(D) 29.65 2555.65

Tata Pure Equity(G) 24.09 613.01

Tata Equity Opportunities(G) 17.07 336.66

Tata Equity P/E(G) 13.99 732.48

DSPBR Focus 25(G) 12.34 697.17

Tata Balanced(G) 11.09 314.22

Nifty BeES 10.06 538.03

Tata Dividend Yield(G) 7.62 206.38



43/69



DSPBR Balanced(G) 6.55 744.30

Tata Equity Mgmt(G) 6.10 147.24

Sundaram Growth Fund(G) 6.09 187.26

Sundaram-Select Thematic Funds-Rural India(G) 6.09 191.11

Kotak Tax Saver(G) 6.07 510.19


LIC Nomura MF Top 100(G) 4.73 271.84

Sundaram India Leadership Fund(G) 4.57 148.28


RATING:


44/69



ICICI Bank Limited

SECTOR: BANKING

SCORE CARD:



Dividend Yield 1.28

P/E 24.49


CMP(Rs.) 652.15


45/69




MAY TO 4th

JULY):

ICICI BANK

COMPANY PROFILE:

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$

100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended

March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian

stock exchanges in terms of free float market capitalization. The Bank has a network of

about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. The Bank

currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Unites

States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International

Finance Centre and representative offices in United Arab Emirates, China, South Africa,

52 week high (1277.00)

52 week low (829.80)



46/69



Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established

branches in Belgium and Germany.

BUSINESS:

The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence

in 18 countries. ICICI Bank is India's second-largest bank with total assets of Rs.

3,997.95 billion (US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58

billion for the year ended March 31, 2008. ICICI Bank is second amongst all the

companies listed on the Indian stock exchanges in terms of free float market

capitalization. ICICI Bank offers a wide range of banking products and financial services

to corporate and retail customers through a variety of delivery channels and through its

specialised subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the

National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).


ParticularsNo. of

Shares(Mn)%

Holdings







Total 1,151.77 100


47/69



FINANCIALS:

(Rs. in Million)


No of Months 12 12 12 12 12

I. INCOME

Interest Earned 259740.53 257069.33 310925.48 307883.43 219955.88

Other Income 66478.93 74776.50 76037.27 88107.63 69278.73

Total Income 326219.45 331845.83 386962.76 395991.06 289234.60

II. EXPENDITURE

Interest Expended 169571.52 175925.70 227259.34 234842.42 163584.98

Operating Expenses 66172.49 58598.33 70451.14 81541.82 66905.56

PBIDT 90475.45 97321.80 89252.28 79606.82 58744.05

Provisions and Contingencies 22868.38 43868.57 38082.58 29045.84 22263.66


Taxes 16093.30 13203.40 13588.36 8983.70 5378.19

Total 274705.69 291596.00 349381.42 354413.78 258132.40

III. Profit & Loss

PAT 51513.76 40249.83 37581.33 41577.28 31102.20

Profit brought forward 34643.81 28096.51 24363.16 9982.74 2934.42

Adjusted Net Profit 0 0 0 0 0


48/69



Total Profit & Loss 51513.76 40249.83 37581.33 41577.28 31102.20

IV. Appropriations 86157.57 68346.34 61944.49 51560.02 34036.62

Equity Dividend (%) 140.00 120.00 110.00 110.00 100.00


Book Value (Rs.) 478.32 463.02 444.95 417.67 270.37


The company is moving ahead strongly and the future of the company is indeed bright. The

growing middle class of the country is a major prospective client category which seems to speed

up the business turnover and base.



HDFC Top 200(G) 651.46 10644.84

HDFC Equity(G) 620.73 9419.27

Bank BeES 324.80 992.98



Franklin India Flexi Cap(G) 133.51 2002.91

HDFC MIP-LTP(G) 129.39 9728.62






49/69



DSPBR India T.I.G.E.R-Reg(G) 89.86 2144.53

HDFC Growth(G) 85.03 1310.22


HDFC Infrastructure(G) 79.82 1051.70


Tata Infrastructure(G) 65.17 1522.71





RATING:


50/69



Larsen &Toubro

SECTOR: CAPITAL GOODS AND ENGINEERING

SCORE CARD:



Dividend Yield 0.80

P/E 28.41


CMP(Rs.) 2265.80

52 week - high (2212.00)

52 week - low (1463.05)


51/69



STOCK PRICE MOVEMENTS (16TH MAY TO 4th JULY):

COMPANY PROFILE:

Larsen & Toubro (L&T) is a technology-driven USD 7 billion company that infuses engineering

with imagination. It offers a wide range of advanced solutions, services and products. L&T's in-

house capabilities in technology development are complemented by tie-ups with world leaders.

It provides state-of-the-art products & solutions to a large and diverse customer base. L&T was

founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen andSoren Kristian Toubro. Both of them were strongly committed to developing India's engineering

capabilities to meet the demands of industry. Beginning with the import of machinery from

Europe, L&T rapidly took on engineering and construction assignments of increasing

sophistication. Today, the company sets global engineering benchmarks in terms of scale and

complexity.



52/69



BUSINESS:

Larsen & Toubro (L&T) is a technology-driven USD 7 billion company that infuses engineering

with imagination. It offers a wide range of advanced solutions, services and products. Larsen &

Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company. It

is one of the largest and most respected companies in India's private sector.

Seven decades of a strong, customer-focused approach and the continuous quest for world-class

quality have enabled it to attain and sustain leadership in all its major lines of business.


ParticularsNo. of

Shares(Mn)%

Holdings







Total 608.85 100

FINANCIALS:


53/69



(Rs. in Million)


No of Months 12 12 12 12 12

Gross Sales 373555.80 343370.10 253422.10 179382.90 149947.90



Less: Excise 3207.80 3984.70 3327.80 3334.90 2307.60

Net Sales 370348.00 339385.40 250094.30 176048.00 147640.30

EXPENDITURE :

Increase/Decrease in Stock 3990.70 -1102.70 -7445.70 -1171.70 1363.40


Power & Fuel Cost 3653.60 4833.00 3652.50 3081.30 2347.50

Employee Cost 23104.90 19180.00 14974.30 12319.90 8753.60



Expenses19544.20 17545.70 14142.80 12173.00 7853.70



Expenses Capitalised 0 0 0 33.00 0


PBIDT (Excl OI) 48803.80 39117.80 30203.20 17337.90 10478.30

Other Income 20525.60 8123.00 5203.70 5787.70 5526.80


Interest 6376.70 4776.80 1736.20 1376.60 1723.70

PBDT 62952.70 42464.00 33670.70 21749.00 14281.40

Depreciation 4146.00 3059.90 2116.00 1700.10 1144.90


Exceptional Items

58806.70 39404.10 31554.70 20048.90 13136.50




PAT 42398.00 27092.00 21734.20 14030.20 9423.90

Adj to Profit After Tax -23.90 -3.30 -7.70 -88.90 -44.20


54/69




Appropriations 44736.30 35856.40 22508.90 14498.30 10633.40

Equity Dividend (%) 625.00 525.00 850.00 650.00 1100.00


Book Value (Rs.) 298.56 208.28 321.93 200.50 331.43


With the economic progress of the country and the prospects of the other businesses looking

good, the company hopes to continue with the current momentum. The following points

illustrate its achievements and a glimpse of what is to come.

L&T-Paul Wurth Consortium Commissions Indias Largest Blast Furnace at Jamshedpur.

L&T Bagged Electrical Project Orders worth Rs. 6,350 million in the Gulf Region.

L&T and GE Energy entered Control System Partnership Agreement.




HDFC Top 200(G) 138.38 10644.84





55/69







DSPBR Focus 25(G) 46.92 697.17

HDFC Infrastructure(G) 34.50 1051.70


Tata Indo-Global Infra(G) 31.26 833.49


Sundaram Select Focus(G) 29.45 852.55

Nifty BeES 28.30 538.03

Sundaram-Select Thematic Funds-Energy Opp(G) 27.41 1067.51

Kotak Opportunities(G) 26.28 925.19

Principal Personal Tax saver 20.69 579.20

Sundaram-Select Thematic Funds-CAPEX Oppor(G) 20.47 352.47


RATING:


56/69



Reliance Infrastructure Limited

(formerly Reliance Energy)

SECTOR: POWER AND ENERGY

SCORE CARD:



Dividend Yield 1.33

P/E 13.34


CMP (Rs) 886.55

52 week - high (1225.00)

52 week - low (492.85)



57/69




MAY TO 4th

JULY):

Reliance Infrastructure

COMPANY PROFILE:

Reliance Energy Limited, now Reliance infrastructure limited incorporated in 1929, is a fully

integrated utility engaged in the generation, transmission and distribution of electricity. It ranks

among Indias top listed private companies on all major financial parameters, including assets,

sales, profits and market capitalization. The companys Vision is to be amongst the most

admired and most trusted integrated utility companies in the world, delivering reliable and

quality products and services to all customers at competitive costs, with international standards

of customer care thereby creating superior value for all stakeholders and also to set new

benchmarks in standards of corporate performance and governance through the pursuit of

operational and financial excellence, responsible citizenship and profitable growth.

BUSINESS:

A constituent of the Reliance Anil Dhirubhai Ambani Group, Reliance Energy is India s

foremost private sector utility with aggregate estimated revenues of Rs 9,500 crore

(US$2.1 billion)and total assets of Rs 10,700 crore (US$2.4 billion). Reliance Energy

distributes more than 21 billion units of electricity to over 25 million consumers in

Mumbai, Delhi, Orissa and Goa, across an area that spans 1,24,300 sq.kms. It generates


58/69



941 MW of electricity, through its power stations located in Maharashtra, Andhra

Pradesh, Kerala, Karnataka and Goa.Reliance Energy companies currently pursue several

gas, coal, wind and hydro-based power generation projects in Maharashtra, Uttar

Pradesh, Arunachal Pradesh and Uttaranchal with aggregate capacity of over 13,510

MW. These projects are at various stages of development.


ParticularsNo. of

Shares(Mn)%

Holdings







Total 267.42 100

FINANCIALS:

(Rs. in Million)


No of Months 12 12 12 12 12

Gross Sales 96898.50 97394.80 60827.30 57434.10 39350.60

Less: Excise Duty 0 0 0 0.30 2.90

Net Sales 96898.50 97394.80 60827.30 57433.80 39347.70

EXPENDITURE :

Increase/Decrease in Stock -927.60 1196.20 -2304.40 504.60 -652.30

Power Generation &Distribution Cost 45425.00 54218.70 35040.70 24545.10 19003.70

Employee Cost 6502.30 5330.20 3833.80 2851.40 2078.30

Operation Expenses 31115.40 21771.60 13901.30 20290.70 8109.60

General and Administration Expenses 1397.50 1455.80 1033.90 1009.70 403.30


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PBIDT (Excl OI) 7835.40 4298.80 4953.70 4804.90 7140.90

Other Income 11254.50 13389.30 11880.30 8822.60 6078.90


Interest 2922.10 3305.00 3087.60 2503.20 1918.80

PBDT 16167.80 14383.10 13746.40 11124.30 11301.00

Depreciation 3198.40 2448.80 2229.40 2400.60 3486.30

Profit Before Taxation & Exceptional

Items12969.40 11934.30 11517.00 8723.70 7814.70




PAT 11516.90 11388.80 10846.30 8014.50 6503.40

Adj to Profit After Tax 0 711.00 0 0 0


Appropriations 18348.90 19137.40 14439.10 10773.80 8506.50

Equity Dividend (%) 71.00 70.00 63.00 53.00 50.00


Book Value (Rs.) 574.78 466.05 435.51 378.12 331.24


The company has a number of projects in the hand and is poised to become a giant in the times

to come. This was evident from the IPO issue of the company of approx.3 billion which was

Indias largest IPO so far. The IPO was oversubscribed by about 89 times. Though due to the

overall market correction, the price could not be maintained and the promoter offered a bonus

issue of 3:5 shares to the shareholders to remain invested and be confident of the fundamentals

of the company. The real power of the company will be unleashed after a few years when the

projects are completed and start generating much more revenue for the company.


60/69




Scheme Name Market Val (In

Crs.)AUM(In Crs.) Hold Per

Templeton India Growth(D) 42.25 869.84

HDFC Top 200(G) 12.77 10644.84

MOSt Shares M50 - MOS ETF 7.76 173.91

HSBC Progressive Themes(G) 5.12 211.72

HDFC Arbitrage-Ret(G) 4.49 73.55

Kotak Equity Arbitrage(G) 3.88 95.45

Nifty BeES

2.53 538.03

LIC Nomura MF Top 100(G) 1.44 271.84

JM Arbitrage Adv(G) 1.08 59.19

LIC Nomura MF Equity(G) 0.93 94.82

Infra BeES 0.84 34.32

IDBI Nifty Index Fund-(G) 0.65 137.99

Franklin India Index-NSE Nifty(G) 0.62 130.95

Franklin India Index-BSE Sensex(G) 0.35 61.90

HDFC Index-Sensex Plus(G) 0.30 65.98

HDFC Index-Sensex(G) 0.26 51.08

HDFC Index-Nifty(G) 0.24 55.18

ING OptiMix Multi-Mgr Equity-Reg(G) 0.21 67.59

Baroda Pioneer Growth(G) 0.18 63.24

LIC Nomura MF Index-Nifty(G) 0.15 33.42


RATING:


61/69



Reliance Industries Limited

SECTOR: OIL & GAS

SCORE CARD:



Dividend Yield 0.90

P/E 14.39


CMP(Rs.) 2182.65

52 week - high (1187.00)


62/69




MAY TO 4th

JULY):

52 week - low (829.00)



63/69



COMPANY PROFILE:

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest

private sector enterprise, with businesses in the energy and materials value chain. Group's

annual revenues are in excess of US$ 34 billion. The flagship company, Reliance

Industries Limited, is a Fortune Global 500 company and is the largest private sector

company in India.Backward vertical integration has been the cornerstone of the evolution

and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a

strategy of backward vertical integration - in polyester, fibre intermediates, plastics,

petrochemicals, petroleum refining and oil and gas exploration and production - to be

fully integrated along the materials and energy value chain.The Group's activities span

exploration and production of oil and gas, petroleum refining and marketing,

petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.

BUSINESS:

The company is a significant contributor to India's economic growth:

y Revenues equivalent to 3% of Indias GDP

y 13.4% of Indias total exports

y 4.9% of the Government of Indias indirect tax revenues

y 6.7% of the total market capitalization in India

y Weightage of 16.5% in the BSE Sensex

y Weightage of 12.5% in the Nifty Index


64/69




ParticularsNo. of

Shares(Mn)%

Holdings







Total 3,273.37 100

FINANCIALS:

(Rs. in Million)


No of Months 12 12 12 12 12

Gross Sales 2586511.50 2003997.90 1463280.70 1392694.60 1183537.10

Less :Inter divisional

transfers0 0 0 0 0


Less: Excise 104811.50 79387.70 44806.00 58264.60 66609.90

Net Sales 2481700.00 1924610.20 1418474.70 1334430.00 1116927.20

EXPENDITURE :

Increase/Decrease in Stock -32091.10 -35787.40 -5390.90 15043.80 -6609.10


Power & Fuel Cost 22550.70 27067.10 33559.80 20528.40 22616.90

Employee Cost 25818.20 23077.30 23574.00 20499.50 20459.50

Other Manufacturing

Expenses63233.10 49556.10 35038.30 38208.20 33818.30


Expenses22386.40 21933.60 25067.00 21954.30 20002.10

Selling and Distribution 53531.00 41237.70 30952.70 32295.90 36614.50


65/69



Expenses


Expenses Capitalised 302.60 12179.20 32656.50 1754.60 1112.10


PBIDT (Excl OI) 377583.30 299044.40 232253.50 223190.20 200462.30

Other Income 34191.10 31367.40 21484.00 66156.20 4782.80


Interest 23276.20 19972.10 17452.30 10773.60 11888.90

PBDT 388498.20 310439.70 236285.20 278572.80 193356.20

Depreciation 136075.80 104965.30 51952.90 48471.40 48151.50



Exceptional Income /

Expenses0 0 0 0 0



PAT 202863.00 162356.70 153093.20 194582.90 119434.00

Adj to Profit After Tax 0 0 0 481.00 5.10


Appropriations 252857.50 216198.60 196726.10 222717.60 149730.00

Equity Dividend (%) 80.00 70.00 130.00 130.00 110.00


Book Value (Rs.) 446.25 392.51 727.78 542.83 439.67


66/69




The company has made various oil and gas discoveries in the recent times and these are

considered to drive the success of the company in the times to come.

Credit Ratings of the company clearly reflect the confidence the world has in the

companys prospects.

Rating Agency Instrument Rating

CRISIL Long Term Debt AAA

Fitch Long Term Debt Ind AAA

CRISIL Short Term Debt P1+

CRISIL Working Capital Debt AAA

Moody's International Debt Baa2

S&P International Debt BBB

Fitch International Debt BBB -


67/69





HDFC Top 200(G) 483.28 10644.84

HDFC Equity(G) 299.53 9419.27




HDFC Growth(G) 97.74 1310.22





Tata Indo-Global Infra(G) 61.85 833.49

Sundaram-Select Thematic Funds-Energy Opp(G) 59.80 1067.51




Nifty BeES 51.65 538.03

Sundaram Select Focus(G) 50.15 852.55


Kotak 50(G) 47.58 862.02



68/69




RATING:


69/69


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