prafful project

8/10/2019 Prafful Project

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A

SUMMER INTERNSHIP PROJECT REPORT ON

FUNDAMENTAL ANALYSIS OF TEXTILE INDUSTRIES

A Report Submitted to Rashtrasant Tukadoji Maharaj

Napur Uni!ersit"

In Partia# $u#%i#ment o% the re&uirement o%

Master of Business Administration MBA! "ourse

Spe'ia#isation inFinan#ia$Manaement

A'ademi' Session ()*+, *-

Prepared b"

%RAFFUL %RAB&A'AR '&ADSE

.uided b"

%rof( SREE )AYS*AL

Tir+ude Institute of Mana,ement Edu#ation

Ci!i# /ines0 Sadar0 Napur 1 ++)))*


2/33

"ERTIFI"ATE

This is to 'erti%" that %raffu$ +ra-.a/ar /.adse is a bona%ide student o%

Tirpude Institute o% Manaement Edu'ation0 Napur pursuin Master o% 2usiness

Administration 3M2A4 'ourse spe'ia#i5ation in Finan#ia$ Mana,ement durin

a'ademi' Session ()*+,*-6

The 'andidate has 7orked under the super!ision o%%rof( Sree )a0s1a$ and

has satis%a'tori#" 'omp#eted her proje't 7ork in this a'ademi' session6 The proje'tsubmitted b" her is her o7n 7ork and is 'omp#ete so as to 7arrant its presentation

%or e8amination6

Her proje't 7ork tit#ed FUNDAMENTAL ANALYSIS OF TEXTTILE

INDUSTRIES7hi'h is in partia# %u#%i##ment o% the re&uirement %or the abo!e

'ourse is bein %or7arded to Rashtrasant Tukadoji Maharaj Napur Uni!ersit" %or

e8amination6

Proje't .uide 9ire'tor

%rof( Sree )a0s1a$ Tir+ude Institute of Mana,ement

Edu#ation


3/33

DE"LARATION

I0 %raffu$ %ra-.a/ar /.adse0 hereb" de'#are that 7ith the e8'eption o%

suestions and uidan'e re'ei!ed %rom m" Super!isor0 %rof( Sree )a0s1a$ this

proje't 7ork tit#ed Fundamenta$ Ana$0sis of Te2ti$e Industriesis m" o7n hard

7ork6

This report has not been submitted b" me %or an" other e8amination o% this

Uni!ersit" or an" other Uni!ersit"6

P#a'e : Napur %raffu$ %ra-.a/ar '.adse

9ate :


4/33

A#/no1$ed,ement

The 'omp#etion o% the dissertation in the present %orm 7ou#d not ha!e beenpossib#e but %or the !a#uab#e uidan'e0 assistan'e0 en'ouraement and 'ontribution

o% !arious peop#e at di%%erent staes o% time6

I am rate%u# to m" uide Pro%6 Rakhi Sharma 7ho he#ped me to orani5e m"

thouhts0 7ork and stud" so as to 'ompi#e this proje't report6 It 7as due to her

'onstant uidan'e and support that I 7as ab#e to stud" the topi' in a detai# and in

an ana#"ti'a# manner6

I 7ou#d a#so #ike to thank The 9ean A'ademi'0 9r6 Sanja" ;a!ish7ar and 9r6 /a#it

;hu##ar0 9ire'tor0 TIME0 Napur %or i!in me the opportunit" to present this

report6

3Pra%%u# Prabhakar ;hadse4

Master o% 2usiness Administration


5/33

"&A%TER 34(4

INTRODU"TION OF FUNDAMENTAL ANALYSIS OF

TEXTILE INDUSTRIES

Fundamenta$ Ana$0sis

The e8amination and e!a#uation o% the re#e!ant in%ormation to se#e't the best 'ourse o% a'tion

%rom amon !arious a#ternati!es6 $undamenta# ana#"sis in!o#!es ana#"5in the 'hara'teristi's o%

a 'ompan" in order to estimate its !a#ue6

$undamenta# ana#"sis in!o#!es e8aminin the e'onomi'0 %inan'ia# and other &ua#itati!e and

&uantitati!e %a'tors re#ated to se'urit" in order to determine its intrinsti' !a#ue6 It attempts to

stud" e!er"thin that 'an a%%e't the se'urit"


6/33

%or the best se'urit" tri'k#es do7n to the ana#"sis o% tota# sa#es0 pri'e #e!e#s and %orein

'ompetition in a se'tor in order to identit" the best business in the se'tor6

6( Bottom3u+ a++roa#.5in this approa'h0 an ana#"st starts the sear'h 7ith spe'i%i' business0

irrespe'ti!e o% their industr"6

T.e ste+s in7o$7ed in fundamenta$ ana$0sis are5

Ma'roe'onomi' ana#"sis0 7hi'h in!o#!es 'onsiderin 'urren'ies 'ommodities and

indi'es6

Industr" se'tor ana#"sis0 7hi'h in!o#!es the ana#"sis o% 'ompanies that are a part o% the

se'tor6

Situationa# ana#"sis o% a 'ompan"6

$inan'ia# ana#"sis o% the 'ompan"6

>a#uation6

Fundamenta$ ana$0sis too$s5

There are the most popu#ar too#s o% %undamenta# ana#"sis6

Return on net 7orth

9ebt: net 7orth

Sa#es ro7th

PAT ro7th

Pri'e?book !a#ue

*.0 on$0 fundamenta$ ana$0sis


7/33

Lon,3term trends5 %undamenta# ana#"sis is ood %or #on, in!estment based on #on,term

trends0 the abi#it" to identi%" and predi't #on,term e'onomi'0 demoraphi' te'hno#oi'a# or

'onsumer trends 'an bene%it patient in!estors 7ho pi'k the riht industr" roup or 'ompanies6

>a#ue spottin: %undamenta# ana#"sis 7i## he#p identi%" 'ompanies that represent a ood !a#ue6

Some o% the most in!estors think #on,term6 $undamenta# ana#"sis 'an he#p un'o!er 'ompanies

7ith !a#uab#e assets0 a stron ba#an'e sheet0 stab#e earnin and sta"in po7er6

Business insi,.ts5 one o% the most ob#i!ious0 but #ess tanib#e0 re7ards o% %undamenta# ana#"sis

is the de!e#opment o% the thouh understandin o% the business6 A%ter su'h pairs takin resear'h

and ana#"sis0 in!estors 7i## be %ami#iar 7ith the ke" re!enue and pro%it dri!ers behind a

'ompan"6 Earnins and earnins e8pe'tations 'an be potent dri!ers o% e&uit" pri'es6 E!en some

te'hni'ian 7i## aree to that6


8/33

"&A%TER 3 4(6

LITERATURE RE8IE*

LITERATURE RE8IE*

The Indian 'apita# market has 'haned dramati'a##" o!er the #ast %e7 "ears0 espe'ia##" sin'e

*@@)6 Chanes ha!e a#so been takin p#a'e in o!ernment reu#ations and te'hno#o"6 The

e8pe'tations o% the in!estors are a#so 'hanin6 The on#" inherent %eature o% the 'apita market0

7hi'h has not 'haned is the risk in!o#!ed in in!estin in 'orporate se'urities6 Manain the

risk is emerin as an important %un'tion o% both #are s'a#e and sma##,s'a#e in!estors6

Risk manaement o% in!estin in 'orporate se'urities is under a'ti!e and e8tensi!e dis'ussion

amon a'ademi'ians and 'apita# market operators6 Sur!e"s and resear'h ana#"ses ha!e been

'ondu'ted b" institutions and a'ademi'ians on risk manaement6 The mutua# %und 'ompanies in

India ha!e 'ondu'ted spe'i%i' studies on the risk e#ement o% in!estin in 'orporate se'urities6

9re1a$ S(S and Na7:ot 9re1a$$ 4;


9/33

possibi#it" o% de%au#t and bankrupt'" b" the issuer6 $inan'ia# ana#"sts 'an %oresee bankrupt'"6 He

dis'#osed some easi#" obser!ab#e 7arnins o% a %irms %ai#ure0 7hi'h 'ou#d be noti'ed b" the

in!estors to a!oid su'h a risk6

Da7id (L( S#ott and *i$$iam Ed1ard 4;;?! re!ie7ed the important risks o% o7nin 'ommon

sto'ks and the 7a"s to minimise these risks6 The" 'ommented that the se!erit" o% %inan'ia# risk

depends on ho7 hea!i#" a business re#ies on debt6 $inan'ia# risk is re#ati!e#" eas" to minimise i%

an in!estor sti'ks to the 'ommon sto'ks o% 'ompanies that emp#o" sma## amounts o% debt6

The" suested that a re#ati!e#" eas" 7a" to ensure some deree o% #i&uidit" is to restri't

in!estment in sto'ks ha!in a histor" o% ade&uate tradin !o#ume6 In!estors 'on'erned about

business risk 'an redu'e it b" se#e'tin 'ommon sto'ks o% %irms that are di!ersi%ied in se!era#

unre#ated industries6

Na-.i 'umar )ain 4;;6! spe'i%ied 'ertain tips %or bu"in shares %or ho#din and a#so %or

se##in shares6 He ad!ised the in!estors to bu" shares o% a ro7in 'ompan" o% a ro7in

industr"6 2u" shares b" di!ersi%"in in a number o% ro7th 'ompanies operatin in a di%%erent

but e&ua##" %ast ro7in se'tor o% the e'onom"6

He suested se##in the shares the moment 'ompan" has or a#most rea'hed the peak o% its

ro7th6 A#so0 se## the shares the moment "ou rea#ise "ou ha!e made a mistake in the initia#

se#e'tion o% the shares6 The on#" option to de'ide 7hen to bu" and se## hih pri'ed shares is to

identi%" the indi!idua# merit or demerit o% ea'h o% the shares in the port%o#io and arri!e at a

de'ision6

S( Ra:a,o+a$( 4;;>! 'ommented on risk manaement in re#ation to banks6 He opined that ood

risk manaement is ood bankin6 Apro%essiona# approa'h to Risk Manaement 7i## sa%euard

the interests o% the bankin institution in the #on run6 He des'ribed risk identi%i'ation as an art o%

'ombinin intuition 7ith %orma# in%ormation6 And risk measurement is the estimation o% the si5e0

probabi#it" and timin o% a potentia# #oss under !arious s'enarios6


10/33

Basude7Sen 4;;@!dis'#osed the imp#i'ations o% risk manaement in the 'haned en!ironment

and the %a'tors 'onstrainin the speed o% risk manaement te'hno#o" up,radation6 He opined

that the per'eption and manaement o% risk is 'ru'ia# %or p#a"ers and reu#ators in a market

oriented e'onom"6 In!estment manaers ha!e started upradin their risk manaement pra'ti'es

and s"stems6 The" ha!e strenthened the interna# 'ontro# s"stems in'#udin interna# and it and

the" are in'reasin#" usin e&uit" resear'h o% better &ua#it"6 He obser!ed that risk measurement

and estimation prob#ems 'onstrain the speed o% up,radation6 A#so0 inade&uate a!ai#abi#it" o%

ski##s in usin &uantitati!e risk manaement mode#s and #a'k o% risk hedin in!estments %or the

domesti' in!estors are major 'onstraints6 He 'on'#uded that 7ith the beinnin o% a deri!ati!e

market0 ne7 instruments o% risk hedin 7ou#d be'ome a!ai#ab#e6

9.os. T(%(4;;


11/33

"&A%TER3 6(4

INTRODU"TION TO T&E INDUSTRY

Introdu#tion to Industr0

Te2ti$es

The te8ti#es se'tor in'#udes the appare#0 home te8ti#es0 and te'hni'a# te8ti#es sements6 The

industr" 'ontributes B+ to India


12/33


13/33

"&A%TER36(6

"OM%ANY %ROFILE

"om+an0 %rofi$e

Mone" 2ee Institutes %ounder0 Ashutosh =akhare is an Enineer and a $inan'e .raduate 7ith G

"ears o% 7ork e8perien'e6 He has 7orked 7ith CN2C,T>*F and TIMES NO= as an E&uit"Resear'h Ana#"st and 7ith ;otak Se'urities as a 2ran'h Manaer6

M2I is a rapid#" ro7in oranisation as 'an be seen %rom the proress it has made sin'e its

in'orporation in Apr )D6 =e ha!e a stron team o% industr" e8perien'ed $a'u#t" members and

are pri!i#eed to be the trainers o% 'hoi'e %or some o% the #eadin names in the %inan'ia# ser!i'es

spa'e0 in'#udin sto'k market reu#ator SE2I6

=e pro!ide trainins on !arious topi's re#ated to in!estments6

=e desin 'ontent %or !arious orani5ations and ha!e authored a book on Mutua# $unds %or The

2omba" Sto'k E8'hane6 SE2I E9 Shri6 R6 ;6 Nair has ra'ed the book b" 7ritin its %ore7ord6

The book tit#ed In!estin in Mutua# $unds is desined %or %irst time in!estors and is 'urrent#"

distributed as the stud" materia# %or 2SE 'ourses on Mutua#$und6

Mone" 2ee is a#so '#ose#" asso'iated 7ith the Nationa# Sto'k E8'hane in 'ontent desinin and

has desined an NC$M modu#e %or the NSE tit#ed Mutua# $unds , A 2einners Modu#e6

Trainin,s %ro7ided

M2I has a 7ide arra" o% trainin prorams0 desined de#i!ered b" industr" e8perien'ed

$a'u#ties to meet the !aried re&uirements o% our audien'e6 =e pro!ide trainins on Mutua#

$unds0 Persona# $inan'e0 E&uit" Markets0 9ebt Markets0 $undamenta# ? Te'hni'a# Ana#"sis0

Port%o#io Manaement0 et'


14/33


15/33

In'orporated in *@F)0 Hind S"ste8 /imited 3HS/4 is a part o% the Hind roup o% 'ompanies6 The

'ompan" manu%a'tures s"ntheti' b#ended "arn6 It produ'es doub#e d"ed and re" "arn %or the

domesti' and o!erseas markets6 Its reistered o%%i'e is at 9e 7as0 Madh"a Pradesh6

'e0 &i,.$i,.ts

Se$$s assets of Bir,od unit

HS/ is se##in surp#us p#ant ma'hiner" 3e8'#udin po7er house4 b" e au'tion pro'ess throuh

MSTC /td0 as dire'ted b" #enders6 9urin $*(0 the 'ompan" disposed o%% surp#us assets 7orth

Rs *@6+- mn at 2irod0 Madh"a Pradesh0 b" eau'tion throuh MSTC /td6 As on Mar'h *0

()*(0 the sa#e o% #and bui#

%rodu#tion +$un,es durin, FY46

HS/ operated (F0F)) spind#es at its Pi##ukhedi unit in Madh"a Pradesh durin $*(6 The

'ompan" has 'apa'it" o% +*0+(+ spind#es at the p#ant6 Ho7e!er0 'apa'it" uti#isation at the p#ant

remained #o7 durin the "ear under re!ie7 due to 7orkin 'apita# 'onstrains6 Produ'tion o%

s"ntheti' b#ended "arn de'reased b" B+ "earon"ear 3"o"4 durin $*( to BD0(FG tonnes

%rom BD0-G) tonnes in $**6

'e0s Ris/s

In'rease in pri'es o% ra7 materia#s #ike 'e##u#osi' and non'e##u#osi' %ibre

In'rease in po7er and %ue# 'ost

Competition %rom domesti' p#a"ers as 7e## as 'heaper %abri' imports %rom neihbourin

'ountries 6I Chane in o!ernment reu#ations reardin e8port0 'ustoms0 e8'ise0 >AT0et'din and po7er house at 2irod 7as under eau'tion pro'ess6

6( Bom-a0 D0ein, CMf, "om+an0 Limited5


16/33

In'orporated in *FD@ b" No7rosjee=adia0 2omba" 9"ein Manu%a'turin Compan" /td

329MC/4 is enaed in manu%a'turin and se##in te8ti#e and po#"ester6 The 'ompan" %ora"ed

into the rea# estate in())-6 The 'ompan" has its te8ti#e pro'essin unit at Ranjanaon in Pune

distri't and po#"ester p#ant atPata#ana in Raiad distri't0 both in Maharashtra6

'e0 &i,.$i,.ts

%SF #ontri-uted > to re7enue in FY46

The 'ompan" is amon the three produ'ers o% po#"ester stap#e %ibrePS$4 in India6 PS$


17/33

# $#u'tuations in pri'e o% puri%ied terephtha#i' a'id0 a ke" ra7 materia# %or

po#"ester

# 9umpin o% #o7'ost te8ti#es b" p#a"ers in 2an#adesh0 China0 Pakistan

# $orein 'urren'" %#u'tuations and rupee depre'iation impa't on business

G( Bom-a0 Ra0on Fas.ions Limited5

2omba" Ra"on $ashions /imited 32R$/4 7as in'orporated in *@@(6 The 'ompan" is enaed in

the manu%a'ture0 e8port and retai#in o% hihend %abri's and arments6 The 'ompan" has (

manu%a'turin %a'i#ities a'ross India6

'e0 &i,.$i,.ts

*ea7in, units #ommen#e o+erations in FY46

In $**0 2R$/ 'omp#eted settin up a %abri' 7ea!in unit at Is#ampur in San#i distri't o%

Maharashtra6 The 'ompan" in!ested Rs +6- bn in the %a'i#it"0 7hi'h has a 'apa'it" o% F) #ooms6

The unit 'ommen'ed 'ommer'ia# produ'tion durin $*(6 Another 7ea!in unit0 at Tarapur in

Maharashtra0 a#so 'ommen'ed 'ommer'ia# produ'tion durin $*(6

Stron, +resen#e a#ross te2ti$e 7a$ue #.ain

2R$/ has a stron presen'e a'ross the entire !a#ue 'hain %rom %ibre to "arn to te8ti#e to arments

and retai#6 The 'ompan" operates throuh manu%a'turin %a'i#ities in Maharashtra0 ;arnataka0

Tami# Nadu and ;era#a6 It a#so has a samp#in unit at Mumbai6 2R$/ has its o7n 7ea!in

%a'i#it" and o%%ers %abri's su'h as 'otton0 !is'ose and po#"ester %abri's6 It a#so has an inhouse

button manu%a'turin unit6 2R$/ markets its read"made arments under the L.uruL brand6 It is

the #arest manu%a'turer o% shirts in the 'ountr"6

'EY RIS'S


18/33

# Ad!erse mo!ement in %orein e8'hane rates e8ports 'ontributed B+F to re!enue in

$*(

# Risk o% %ast'hanin trends0 as the 'ompan" operates in the %ashion industr"

# Competition %rom other p#a"ers

=( BSL Limited5

2S/ /imited 32S/4 is part o% the /NJ 2hi#7ara roup6 It 7as in'orporated in *@D*6 The

'ompan" is enaed in the manu%a'ture o% %ashion %abri's and "arn in India6 Its produ't

port%o#io in'#udes 7oo#0 po#"ester !is'ose b#ends %or suitins0 shirtins and mohair po#"ester

7oo#6

'e0 &i,.$i,.ts

Leadin, manufa#turer of fas.ion fa-ri#s and 0arn

2S/ is one o% the #eadin manu%a'turers o% %ashion %abri's and "arn in India6 The 'ompan"

produ'es a 7ide rane o% po#"ester !is'ose %abri's and premium rane o% 7orsted suitins0

in'#udin 'ashmere 0mohair0 anora and 'ame#hair b#ends6 The 'ompan" uses the %inest

Austra#ian merino 7orsted %or makin 7oo##en %abri's and #o7 pi## tre!ira po#"ester %or makin

7oo# b#ends0 7hi'h are imported %rom Austra#ia and .erman"6 To produ'e spe'ia# %abri's0 the

'ompan" uses si#k imported %rom China6 The 'ompan"


19/33

'EY RIS'S

>o#ati#it" in pri'es o% ra7 materia#s #ike "arn0 po#"ester0 si#k and 7oo#0 et'

Ad!erse mo!ement in %ore8 rates

Chane in trends0 %ashion and demand %rom 'ustomers

( "entur0 En/a Limited "EL!

Estab#ished in *@G-0 Centur" Enka /imited 3CE/4 is a part o% the 2 ; 2ir#a roup o% 'ompanies6

CE/ is in!o#!ed in manu%a'turin o% industria# and te8ti#e "arn as 7e## as %abri'6 Its produ'ts

in'#ude n"#ont"re 'ord %abri' 3NTC$40 n"#on %i#ament "arn 3N$4 and partia##" oriented "arn

3PO4 po#"ester 'hips 6Its reistered o%%i'e is situated at Pune0 7hi#e its head o%%i'e is at

Mumbai6 As on Mar'h *0 ()*(0 CE/ had *0-FD emp#o"ees 3aainst *0-DF on Mar'h *0 ()**46

"ommissions ne1 #a+a#ities at B.aru#. in FY46

9urin $*(0 CE/ 'ommissioned an NTC$ dippin p#ant at 2haru'h 3.ujarat46 The 'ompan"s

+ M= as based po7er unit at 2haru'h a#so turned operationa# durin the "ear6 $urther0 CE/

a#so 'ommissioned NTC$ 'apa'it" o% D0-)) tonnes per annum 3TPA4 durin the "ear at 2haru'h0

takin its tota# NTC$ 'apa'it" to (@0-)) TPA6

&a$ts o+erations at Ma .adH +$ans #$osure of one unit

CE/


20/33

Intense 'ompetition in NTC$ sement %rom Southeast Asian p#a"ers

O!er 'apa'it" in po#"ester PO and N$ industr" ma" #ead to pressure on marins

Marina# market share in domesti' PO market restri'ts pri'in %#e8ibi#it"

"&A%TER3G

INTERNS&I% TO%I"

Beta Ratin,


21/33

2eta Ratin is the ana#"ses based on %i!e &uantitati!e parameter

Return on Net =orth (+

9ebt to Net =orth *

Sa#es .ro7th *-

PAT .ro7th *-

Pri'e to 2ook >a#ue *)

These %i!e parameters are used to e!a#uate 'ompan"


22/33

Resear#. met.odo$o,0

Resear'h methodo#o" is a 7a" to s"stemati'a##" so#!e the resear'h prob#em6 The resear'h

methodo#o" usin %or %ind out the so#ution o% the resear'h prob#em is ana#"ti'a# resear'h

methodo#o" and some e8tend des'ripti!e resear'h methodo#o"6

Se#ondar0 data

The sour'es o% se'ondar" data %or so#!e the prob#em are:

Compan" annua# report

Internet,7ebsite

%eriod of stud05

The period o% the stud" is three "ears i6e6 3()*),()*(4 'ompan" three "ears data has been taken

%or the ana#"sis6

Too$s5

T.ere are fo$$o1in, too$s 1.i#. used5

Return on net 7orth

9ebt: net 7orth

Sa#es ro7th

PAT ro7th

Pri'e?2ook !a#ue


23/33

"&A%TER3=(4

OB)E"TI8E OF %RO)E"T

O-:e#ti7e of Fundamenta$ Ana$0sis


24/33

To make a proje'tion on its business per%orman'e6

To 'a#'u#ate Credit Risk6

To e!a#uate its manaement and make interna# business de'isions6

To ana#"5e te8ti#e industr" %or the se#e'ted period o% three "ears6

"&A%TER3=(6

S"O%E OF STUDY

S#o+e of Fundamenta$ Ana$0sis


25/33

Industr" ana#"ses 'onsist o% 'ross se'tiona# industr" per%orman'e0 industr" per%orman'e

o!er time0 di%%eren'e in industr" risk0 predi'tion about market beha!ior6

Compan" ana#"sis 'onsist o% ana#"sis porters mode# and %inan'ia# statements o% 'ompan"6

This stud" i!es an o!er!ie7 on te8ti#e industr"0 7hi'h he#p to in!estor 7hi#e in!est

"&A%TER3=(G

ANALYSIS OF DATA


26/33

&ind s0nta2 $td

6?4? 6?44 6?46

Net sa#es D+6( *)--6F **+(

PAT ,D6- ,((6D

,

*)-6F

E&uit" 'apita# *)F6@ *(D6 *(D6

R Surp#us ,(D6( ,(@-6@,

+)*6D

T9 -@*6D --+6( -F6*

Cmp F6*

pri'e *(6D

Net 7orth ,*G+6 ,*GF6G

,

(D+6+

4 return on net 1ort.6=! +- * @ G6(6

6 de-t5 net 1ort.K4!

,6G)*

,6(FD*

,*6@G* 36(;

G sa$es ,ro1t.4! ++ F 6(;


27/33

Bom-a0 D0ein, C mf, #o $td

6?4? 6?44 6?46

Net sa#es *)D+@6 *G-*G6 (*F+F6+

PAT *F+6( (*6@ -@6-

E&uit" 'apita# FG6* +)-6+ +*6*

R Surp#us *G-G6G )@6 G@*6+

T9 *DD-*6* *(D *)))6-

'mp *(-6-

pri'e +*6

Net 7orth ()+(6D +++6D +*)+6-

* return on net 1ort.6=! @ G *+ ;(;?

6 de-t5 net 1ort.K4! F6G@))( 6-@*F@ 6*GDF (4

G sa$es ,ro1t.4! -+ ( =6(;@

= %AT ,ro1t.4! *G *DD ;@

2ook !a#ue3net 7orth?no o% share4 @@6F(G

+ri#e +er -oo/ 7a$ueK4?! 4(6>

Beta Ratin,


28/33

Bom-a0 Ra0on fas.ions $td 6?4? 6?44 6?46

Net sa#es *F)*+6- (G@)@ (FDDF

PAT *G(+6@ ()+6( *GD6DE&uit" 'apita# ***@ *(D@ *+G

R Surp#us *-+((6- ((@D6G (-((

T9 (+@)(6D *+(6 -))-6(

Cmp (-F6*

pri'e *+6G

Net 7orth *G-+*6- (+(-(6G (G-DF

4 return on net 1ort.6=! *) F G


29/33

BSL $td 6?4? 6?44 6?46

Net sa#es ()+6G (-GG6F (FD@6-

PAT D6@ -G6G *6

E&uit" 'apita# *)(6@ *)(6@ *)(6@

R Surp#us @6@ +-) ++-6-

T9 ***+6 *+(6D *+@+

Cmp *6

pri'e *)6

Net 7orth +@G6F --(6@ -+F6+

4 return on net 1ort.6=! F *) ) >(?G

6 de-t5 net 1ort.K4! (6(+(@- (6-@*(- (6D(+(@ 6(6

G sa$es ,ro1t.4! (G *( 4;(4@

= %AT ,ro1t.4! +@ ,@F 36=

2ook !a#ue3net 7orth?no o% share4 -6(+(D

+ri#e +er -oo/ 7a$ueK4?! ?(6

Beta Ratin,

"entur0 En/a $td

6?4? 6?44 6?46

Net sa#es *(*F)6 **D6- *G+++6D

PAT *))*6G D@6G FD6FE&uit" 'apita# ()F6- (*F6- (*F6-

R Surp#us -+(F G*FF6+ G*+@6(

T9 ()DG6* +)G6D -(+6

Cmp **D6-

Pri'e (*6@

Net 7orth -GG6- G+)G6@ GGD6D

4 return on net 1ort.6=! *F *( * 4?(4

6 de-t5 net 1ort.K4! )6GF )6G+(D )6--+D ?(6

G sa$es,ro1t.4! @ ( 4>(=4

= %AT ,ro1t.4! ,(* ,F@ 3

2ook !a#ue3net 7orth?no o% share4 (@)6DG

+ri#e +er -oo/ 7a$ueK4?! ?(=?

Beta Ratin,


30/33

"&A%TER3=(=

LIMITATIONS OF T&E STUDY

Limitations of t.e Stud0

9ate 'o##e'tion is main#" throuh se'ondar" sour'e6

Possibi#it" o% error in data 'o##e'tion6

9uration o% proje't is !er" short and it s not possib#e to obser!e e!er" aspe't or

%undamenta# ana#"sis6


31/33

"&A%TER3=(

FINDIN9

In 'ase o% ro7in 'ompan" i% the prospe'ts are ood in!estor shou#d in!est in su'h 'ompan"

7ith reather risk abi#it"6 In 'ase o% ro7 risk taken abi#it" an in!estor shou#d o %or a#read"

estab#ish 'ompan" ha!in star ratin and abo!e6

2eta ratin is the ana#"sis based on %i!e &uantitati!e parameter6 Ea'h parameter used to 'a#'u#ate

some industries 6

$or the 'on'#usion on this part the Hind s"nta8 #td ha!e - star Net 7orth (6(-0 debt:

net 7orth ,(6@-0sa#es ro7th (-6@0PAT ro7th *+ 0 Pri'e per book ,)6D

2omba" d"ein #td ha!e star Net 7orth @6@)0debt:net 7orth ,-6*-0sa#es ro7th

+(6@D0PAT ro7th @D0 Pri'e per book *6(G

2omba" Ra"on %ashions #td ha!e ( star Net 7orth 6*D 0debt :net 7orth *6D0sa#es

ro7th (6*G0PAT ro7th +0 Pri'e per book *6*

2S/ ha!e ( star Net 7orth G6) 0debt: net 7orth (6-(0sa#es ro7th *@6*D0PAT ro7th

,(+0 Pri'e per book )6(-

Centur" Enka #td ha!e star Net 7orth *)6-* 0debt :net 7orth )6-(0sa#es ro7th

*G6+*0PAT ro7th ,--0 Pri'e per book )6+


32/33

"&A%TER3

SU99ESTION

In 'ase o% ro7in 'ompan" i% the prospe'ts are ood in!estor shou#d in!est in su'h 'ompan"

7ith reather risk abi#it"6In 'ase o% ro7 risk taken abi#it" an in!estor shou#d o %or a#read"

estabi#ished 'ompanies ha!in star ratin and abo!e6

Hind s"nta8 #td in'reasin in po7er 'ost and in'reasin in pri'es o% ra7 materia#s

#ike 'e##u#osi' and non,'e##u#osi' %ibre are in!estor in!est in this industr" 6 O!er a##

per%ormes are ood in industr"6 It has - star a##otted6

2omba" d"ein #td %orein 'urren'" %#u'tuations and rupee depre'iation impa't on

are in!estor in!est in this industr"6 O!er a## per%orm are ro7in in industr"6 It has

star a##otted6

2omba" Ra"on $ashion #td is 'ompetition %rom other p#a" are in!estor in!est in this

industr"6 O!er a## per%ormes are ro7in in industr"6 It has ( star a##otted6

2S/ #td is 'hane in trends %ashion demand %rom 'ustomer6 Ad!erse mo!ement in

%or e8tras6 In!estor in!est in this industr"6 O!er a## per%ormes are ro7in in industr"6

It has ( star a##otted6

Centur" enka #td o!er a## per%ormes are ro7in in industr"6 It has star a##otted6 In

this industr" de!e#opin the market pri'in %#e8ibi#it"6


33/33

"&A%TER3>

"ON"LUSION

*6 $undamenta# ana#"sis ho#ds that no in!estment de'ision shou#d be 7ithout pro'essin and

ana#"5in a## re#e!ant in%ormation6

(6 Its strenth #ies in the %a't that the in%ormation ana#"5ed is rea# as opposed to hun'hes or

assumptions6

6 On the other hand0 7hi#e %undamenta# ana#"sis dea#s 7ith tanib#e %a'ts0 it does not tend to

inore the %a't that human beins do not a#7a"s a't rationa##"6

+6 Market pri'es do sometimes de!iate %rom %undamenta#s6 Pri'es rise or %a## due to insider

tradin0 spe'u#ation0 rumor0 and a host o% other %a'tors6

-6 $undamenta# ana#"sis is based on the ana#"sis o% the e'onomi'0 industr" as 7e## as the

'ompan" and in this resear'h 7e 'an see that the e'onomi' indi'ators ha!e an e%%e't on the bank

ro7th and assets6

G6 The abo!e report sa"s that our e'onomi' is ro7in a%ter the re'ession and it is the ood time

%or the one 7ho 7ant to in!est and a''ordin to the industr" ana#"sis in!estor 'an in!est in the

industries but he?she shou#d be 'are%u# %or the in!estment6 2ut a''ordin to %inan'ia# ana#"sis o%

te8ti#e industries its per%orman'e in the pri!ate industr" is ood and e8pe'ted to ro7 %urther in

the near %uture 7hi'h is a ood sin %or in!estment6

D6 7e 'annot inore the intrinsi' !a#ue o% the 'ompan" 7hi'h is #o7er than the 'urrent !a#ue

7hi'h sho7s then in!estor shou#d se## the share o% the 'ompan" i% he?she is in!estin %or short

term and %or #on term it is ood %or in!estor to in!est in the te8ti#e industries6

prafful project

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