b-114 manisha soni
TRANSCRIPT
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SUMMER PROJECT
COMPARATIVE STUDY :
FINANCIAL ANALYSIS OF EDELWEISS CAPITAL
LTD.WITH ITS COMPETITORS
SUBMITTED BY
MANISHA SONI
ROLL NO.114
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FLOW OF THE PRESENTATION
Introduction to company Need for study
Objective of study
Research Methodology
Data Analysis
Findings and interpretation
Limitation
Future Scope
Recommendation
Conclusion
Bibliography
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INTRODUCTION ABOUT EDELWEISS
A 1000 crore company started its business in 1995.
Mission - ³Ideas create, values protect´.
Its current businesses include:Investment Banking,
Securities Broking, and
Investment Management
Edelweiss also provides a wide range of services to:
Corporations,
Institutional Investors and
High Net-Worth Individuals 3
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NEED FOR THE STUDY
To study the financial position of Edelweiss Capital Ltd. The
results obtained can help an investor decide whether investing
in Edelweiss is profitable or not.
To study how much competent is Edelweiss capital whencompared with its competitors
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OBJECTIVES OF THE STUDY
To calculate and analyze financial ratios and statements.
To study the performance and trends of the company.
To benchmark the company¶s performance to their competitor¶s in order to assess a relative performance
measure.
To provide the investor with information as to where he/she
can get a best investment plan. (Selling the Trading andDemat Account and meeting sales targets )
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RESEARCH METHODOLOGY
R esearch Design
Descriptive
Analytical
Data Collection Methods:
Internet
Discussions with seniors
Information obtained from the Team Leaders and the Branch
Manager at Edelweiss.
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DATA ANALYSIS
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ANALYSIS OF EDELWEISS CAPITAL LTD.
R atios 2007 2008 2009
Gross Profit Ratio 47.99 41.7 38.5
Operating Ratio 47.41 40.08 46.75
Net operating Profit Ratio 53.02 60.17 53.48
Net Profit Ratio 29.6 26.88 23.33
PROFITABILITYR ATIO
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Gross Profit Ratio
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
2007 2008 2009
47.99%
41.70%
38.50%
Gross Profit
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Operating Ratio
36.00%
38.00%
40.00%
42.00%
44.00%
46.00%
48.00%
2007 2008 2009
47.41%
40.08%
46.75%
Operating Ratio
Operating Ratio
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ANALYSIS OF EDELWEISS CAPITAL LTD
R atios 2007 2008 2009
Current Ratio 2.83 2.33 2.68
Proprietor Ratio 0.52 0.47 0.64
Capital Gearing Ratio 0.66 0.84 0.36
Debt Equity Ratio 0.49 0.64 0.48
Interest cover Ratio 10.33 3.22 3.44
FINANCIAL STABILITY R ATIOS
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Current Ratio
0
0.5
1
1.5
2
2.5
3
2007 2008 2009
2.83
2.33
2.68
Current Ratio
Current Ratio
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Proprietary Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.
200 2008 2009
0.520.4
0.64
Proprietary Ratio
Proprietary Ratio
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Debt Equity Ratio
0
0.1
0.2
0.3
0.4
0.5
0.
0.7
2007 2008 2009
0.49
0. 4
0.48
Debt Equity Ratio
Debt Equity Ratio
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ANALYSIS OF EDELWEISS CAPITAL LTD
R atios 2007 2008 2009
ROCE 28.9 25.89 12.94
ROPF 24.45 19.2 8.64
ROESC 24.45 19.2 8.64
EPS 24.44 36.12 30.52
Management Efficiency R atio
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ROCE
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2007 2008 2009
28.90%
25.89%
12.94%
Return on capital Employed
Return on capital
Employed
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Earning Per Share
0
5
10
15
20
25
30
35
0
2007 2008 2009
2 . 5
36.12
30.52
EPS
EPS
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ANALYSIS OF EDELWEISS CAPITAL LTD
R atios 2007 2008 2009
Debtors Turnover Ratio 7.85 9.21 8.13
Debtor Collection Period 46.5 39.7 44.9
Price Earning Ratio - 22.91 10.6
Dividend Payout Ratio - 5.53 12.06
Overall Efficiency R atio
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Debtors Turnover Ratio
7
7.5
8
8.5
9
9.5
2007 2008 2009
7.85
9.21
8.13
Debtors Turnover Ratio
Debtors Turnover Ratio
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Price Earning Ratio
0
22.91
10.6
0
5
10
15
20
25
2007 2008 2009
Price Earning Ratio
Price Earning Ratio
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FINDINGS FOR EDELWEISS
The profitability ratios is not showing good trend from 2007 to2009,as profit has declined due to recession in 2008,but Edelweiss
capital is earning profits by its new ventures.
According to the financial stability ratios Edelweiss is
financially stable.
According to the Management Efficiency ratios, Edelweiss
displays a trend of reducing returns on investment From 2007 to
2009.
Taking into account all three years, Edelweiss has been efficient
with respect to certain overall efficiency ratios but hasn¶t been
up to the standards.22
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ANALYSIS OF EDELWEISS WITH
MOTILAL OSWAL AND EMKAY
FINANCIAL
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Profitability Ratio
R atios for 2009 Edelweiss
Capital
Motilal
Oswal
Emkay
Financial
Gross Profit Ratio 38.5 34.14 2.09
Operating Ratio 46.75 62.11 94.75
Net operating Profit Ratio 53.48 37.95 6.93
Net Profit Ratio 23.22 19.96 -4.6
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Profitability Ratio
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Gross Profit Ratio Operating Ratio Net Operating Profit
Ratio
Net Profit Ratio
Edelweiss
MotilalOswal
Emkay Financial
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Financial Stability Ratio
R atios for 2009 Edelweiss
Capital
Motilal
Oswal
Emkay
Financial
Current Ratio 2.68 1.8 2.03
Debt Equity Ratio 0.48 0.1 0.16
Interest cover Ratio 3.44 8.82 -0.16
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Financial Stability Ratio
-1
0
1
2
3
4
5
6
7
8
9
10
Current Ratio Debt Equity Ratio Interest Cover Ratio
Edelweiss
MotilalOswal
Emkay Financial
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Management Efficiency Ratio
R atios for 2009 Edelweiss
Capital
Motilal
Oswal
Emkay
Financial
ROCE 12.94 18.96 -0.51
ROPF 8.64 12.33 -3.46
ROESC 8.64 12.33 -3.46
EPS 30.52 11.9 3.85
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Management Efficiency Ratio
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
ROCE ROPE
Edelweiss
MotilalOswal
Emkay Financial
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Overall Efficieny Ratio
R atios for 2009 Edelweiss
Capital
Motilal
Oswal
Emkay
Financial
Debtors Turnover Ratio 8.13 1.71 2.04
Price Earning Ratio 14 13.60 21.1
Dividend Payout Ratio 12.06 12.23 -
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FINDINGS ABOUT COMPARISION
The Profitability ratio indicates Edelweiss is earning more profits as compared to other two companies.
The Financial Stability ratio indicates Edelweiss and Motilal
Oswal are more stable whereas Emkay Financial is not.
In case of Management efficiency ratio , Motilal Oswal has
better returns.
Edelweiss has been much efficient than Motilal Oswal and
Emkay Financial in most of the ratios.
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WORK ING AT EDELWEISSBROK ING
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Working at Edelweiss
Introduction about the company
Training
Generating Leads
Managing Leads
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Product & Service offered at Edelweiss
Standard Plan
Subscription Plan
Corporate Account Plan
Tie Ups
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Findings About Edelweiss Broking
ADB
Save on Service tax
Investor training
Offline Support
Baskets
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LIMITATIONS
Due to time constraints comparative analysis is done only
with two firms Motilal Oswal and Emkay Financial
Services.
Due to lack of information in ± depth analysis is not done
with other companies.
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SCOPE FOR FUTURE ENHANCEMENT
Comparative analysis with other competitors of Edelweiss like e.g.
Religare Securities Ltd., India Infoline etc can be done in the future.
The analysis with other investment banking firms will give Edelweiss
a better picture as to where it stands in comparison with its competitors
and could also provide suggestions for further development
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RECOMMENDATIONS
Cutting down on expenses and repaying borrowed debts more
efficiently.
Decentralization of Operational Activities.
Edelweiss can introduce mutual funds and commodities on the
online portal.
The turnover limits offered can be increased to allow the
customers to trade more money which will in turn increase therevenue for the company.
Focus should be on providing better after sales service rather
than just on obtaining clients and achieving targets. 38
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CONCLUSION
Edelweiss Capital Ltd. as a company has been successful since it
moved into retail in 2007 but later the company suffered a
setback as a result of reduction in profit.
Edelweiss Capital Ltd. may not have done well in recent times
but it still has a better position in the market when compared to
some of its competitors.
With a lot of new features on the online portal and the minimum brokerage rate of 1 paisa per share, Edelweiss Broking Ltd. has
been able to grab attention of the investors.
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REFERENCES
www.edelcap.comwww.edelweiss.in
www.edelworld.com
http://www.edelcap.com/AboutUs/Default.aspx?ReportID=E9
ECFFB7-7D79-46E9-844E-33B0AEBA0BFD
http://www.motilaloswal.com/Reporting/
http://www.emkayglobal.com/APP_UI/frmInvestorRelations.a
spx
http://www.edelweiss.in/company/Emkay-Global-Financial-
Services-Ltd.html http://www.investopedia.com/terms/p/profitabilityratios.asp
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THANK YOU
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