PROJECT PROJECT

ON

RATION ANALYSIS"
AMAR SHAHEED BABA AJIT SINGH JUJHAR SINGH MEMORIAL
COLLEGE
Affiliated To
PUNJABI UNIVERSITY PATIALA

In the partial fulfillment of requirement for the award of

Degree of Bachelor of Business Administration (BBA)

Submitted To:
Submitted By:
Punjabi University Patiala
Maninder Singh
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Roll.No. 21312

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DECLARATION

I am a student of BBA 6th Semester of AMAR SHAHHED BABA AJIT SINGH

JUJHAR SINGH MEMORIAL COLLEGE, BELA declare that the Project Report
entitled RATION ANALYSIS is the outcome of my own work and the same has not
been submitted to any university/institute for the award of any degree or any
Professional Degree

Date:

Maninder Singh

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ACKNOWLEGEMENT

Success is not a description, but a journey. While I reach towards the end of this journey, I
realized I may not have come this far without the guidance, help and support of the people who
acted as guides, friends and torch bearers along the way.
I take this opportunity to thank Prof. Geetika without their cooperation I would not have been
able to complete this project.
I express my deepest and most sincere thanks to my organization guide, Mr. Harish Oberoi
(C.A) from who I had the opportunity to learn a lot, I would like to thank him for giving me
valuable suggestion and guidance with which, my project would have been complete.

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Table of Contents

DECLARATION

ACKNOWLEDGEMENT

Executive Summary

Introduction

6-24

Methodology

25-26

Analysis

27-34

FINDINGS AND RECOMENTATION

35-36

Limitation

37

Conclusion

38

References

39

Annexures

40-58

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Executive Summary
The situation of the stock market is very dynamic and it changes every moment so, its very
difficult for the investors to decide which stock is a growth stock and profitable for investment.
Fundamental analysis is done for long term investment and it analyzes the financial health,
competitors and efficiency of management of the company. In order to keep investors safe from
market fluctuations and provide them good return by minimizing the risk, Portfolio Management
is done. It is the selection of the securities and their continuous shifting in the portfolio to
optimize returns.
The aim of our project is to find out the scripts through the fundamental analysis which is to be
added in the portfolio and to prepare an optimum portfolio, which will provide maximum return
at a given level of risk to the investor.
Ten securities of CNX Midcap was considered on the basis of fundamental analysis out of 14
securities to prepare the portfolio. The companies are:- Amtek Auto, Apollo Hospitals
Enterprises, Aurobindo Pharma, Cummins India Ltd, Educomp Solutions, Exide Industries, LIC
Housing Finance, Lupin, Indraprastha Gas, IFCI, IDBI Bank, Power Finance Corporation, Punj
Llyod and Titan Industries. Both primary data and secondary datawas considered. The data
analysis was carried out with the help of MS EXCEL.
After analyzing the portfolio it was found that Portfolio developed is not optimum because riskreturn ratio of portfolio is greater than some of the securities but according to the Jensen ratio
done for evaluating portfolio shows that the portfolio will perform good in the market. Portfolio
beta is near about one. This means my portfolio is as volatile as the market.
Investors are recommended to analyze the shareholding pattern of different companies and then
invest. Companies having FII and mutual fund holdings are considered to be financially good
companies. While preparing the portfolio, the investors should consider Midcap companies also,
if they are providing good returns as they are in their growth stage and have chances of having
good return in the future.

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2. Introduction
2.1 Purpose
We can say that finance is something related to management of money and other assets. A
financial market can be defined as the market in which financial assets are created or transferred.
It facilitates raising of capital in the capital market, transfer of risk in the derivative market and
international trade in the currency market. The capital market is designed to finance the longterm investments. The transactions taking place in this market will be periods over a year. Capital
market consist of stock markets, which provide financing through the issuance of shares or
common stock and enable the subsequent trading thereof. Stock exchange acts as a financial
intermediary. Indian stock markets are one of the oldest in Asia. There are 23 stock exchanges
out of which Bombay Stock Exchange and National Stock Exchange are important.
Investment in securities such as shares, debentures, and bonds
is profitable as well as risky. Investors feel insecure in managing their investment in the stock
market because it is difficult for an individual to identify companies having better growth
prospect for investment. Therefore, investors do not invest their entire funds or savings in a
single security. Instead, they tend to invest in a group of securities. Such a group of securities is
called a Portfolio. Portfolio creation helps to reduce risk without sacrificing returns. Fundamental
analysis is done by the analysts for the long term investment. Portfolio management is an art of
putting money in fairly safe, quite profitable and liquid form of securities. Portfolio management
helps investors to make an intelligent and informed choice for investment securities.

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3. Objectives Of The Project

The market has very volatile nature and it is very difficult for the individuals to identify which
company is growing and in which stocks investments should be made. Investors want to have
minimum risk without sacrificing the return in the long term investment.
So, the objectives of our project are:1. To provide basic idea of different stock market investment instruments to investor.
2. To provide investor, knowledge about P\E, P\BV, EPS and Dividend payout ratio that
would help them in selection of script.
3. To prepare optimum portfolio, which will provide maximum return at a given level of
risk to the investor.
4. To evaluate the portfolio by different means, to find out whether it is performing good or
bad.

4.Study Scope

To understand the behavior of the Indian stock market

To analyze the different securities from different sectors by the fundamental factors

To provide the valuable insight about portfolio and portfolio management.

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5.Theoretical Perspective
5.1 Financial market
Financial market is a mechanism that allows people to buy and sell financial securities (such as
stock and bonds), commodities (such as precious metals or agricultural goods), and other
fungible items of value at low transaction cost and at prices that reflect the efficient- market
hypothesis.
Financial markets facilitate:

The raising of capital (in the capital markets)

The transfer of risk (in the derivatives market)

International trade (in the currency market)

5.2 Types of financial market

Financial markets can be divided on different basis:
1. Nature of claim : Debt / Equity Market
2. Maturity of claim : Money / Capital Market
3. Seasoning of claim : Primary / Secondary Market
4. Timing of delivery : Cash OR Spot / Derivative Market
5. Organized structure : Exchange traded / OTC Market

5.3Indian financial system

A financial system is a composition of various institutions, markets, regulations and laws,
practices, money manager, analysts, transactions and claims and liabilities. Indian financial
system consists of financial market, financial instruments and financial intermediation.

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1. Financial MarketIt can be defined as the market in which financial assets are created or
transferred. As against a real transaction that involves exchange of money for real goods
or services.
2. Financial Instrument- It represents a claim to the payment of a sum of money sometime
in the future and/ or periodic payment in the form of interested or dividend.
Equity/ Share
Bonds/ Debenture
Preference share
Treasury/ bills
Commercial papers
Certificate of deposit
Mutual fund
Financial derivatives

3. Financial Intermediaries Financial intermediaries came into existence to serve as a

proper channel within the system to transfer adequate information of the issue, issuer and
the security. Financial intermediation in the organized sector is conducted by wide range
of institutions functioning under the surveillance of the RBI and SEBI. Some of the
important intermediaries operating in the financial market include; investment bankers,
underwriters, stock exchange, registrars, portfolio manager, financial consultants, primary
dealers, self regulatory organizations.

5.4 Stock market

The market in which shares are issued and traded either through exchanges or over-the-counter
markets. It is also known as the equity market. It provides companies with access to capital and
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investors with a slice of ownership in the company and the potential of gains based on the
companys future performance.
This market can be split into two main sections: the primary and secondary market.
The primary market is where new issues are first offered, with any subsequent trading going on
in the secondary market.

5.4.1 Stock exchange- The stock exchange is basically a marketplace for shares and
securities. That is why it is also called a stock market just like any other market. It brings
together the potential buyer and seller of the securities.
Unlike other markets, no one is permitted to buy or sell shares
directly in a stock exchange. According to the stock exchange rules, anyone has to do so through
a licensed member of stock exchange called stockbroker, or through his registered sub-broker.
The stockbroker is authorized to buy or sell shares on behalf of others on a commission basis.
Trading in recognized stock exchange in India is confined only to listed securities. In India
there are twenty three stock exchanges. In this only two are major stock exchanges: Bombay stock exchangeThe Bombay Stock Exchange (BSE) is a stockexchange located on Dalal Street, Mumbai and
is theoldest stock exchange in Asia. The equity marketcapitalization of the companies listed
on the BSE wasUS$1.63 trillion as of December 2010, making it the4th largest stock
exchange in Asia and the 8th largest in the world. The base year of Bombay stock exchange
is 1978-79.

Major indices- BSE Sensex (base year 1978-79=100), BSE 100 Index, BSE 200
Index, BSE 500 Index, BSE Midcap Index, BSE Smallcap Index, BSE Largecap
Index.

National stock exchangeThe National Stock Exchange of India limited has genesis in the report of the high powered
study group on establishment of new stock exchange, which recommended promotion of a
national stock exchange by financial institution to provide access to investors from all part of
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the country. NSE was promoted by government of India and was incorporated in November
1992 as a tax- paying company unlike other stock exchanges in the country. Its index is
Nifty50.

Major indices
-S&P CNX Nifty (Nov 3, 1996 =1000, base market cap = Rs.2.06 tri), CNX Nifty
Junior, S&P CNX 500

5.4.2 Few important aspect of stock market Need for Stock Market Index
Serves as an important lead indicator of themovements in the level of economic activity
Provides benchmark for the evaluation ofperformance of stocks/portfolios
Enables rational allocation of funds based on therelationship of prices of individual stocks to
themovements in the market
Utility of Stock Market Index
Investors use to determine timing for buyor sell securities
Prices of individual stocks are dependenton stock market index
Characteristics of well defined stock market index
Sample should be representative ofpopulation
Various elements in the sample should beassigned weights
Should be stated in unit that is easy tounderstand
Method of constructing stock market index
Value weighted- NSE & BSE
Equal weighted (arithmetic mean) - ET index
Geometric mean
Combination of two or more of the above

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5.5 Shares-Ownership of the company to the extent of someone investments. There are two
categories of shares: Preference share Preference share is considered as a hybrid security since it has many
features of both ordinary shares and debentures.
Similarity to Ordinary Shares:
1. Non payment of dividends does not force company to insolvency.
2. Dividends are not deductible for tax purposes.
3. In some cases, it has no fixed maturity dates.
Similarity to Debentures:
1. Dividend rate is fixed.
2. Do not share in residual earnings.
3. Preference shareholders have claims on income and assets prior to ordinary
shareholders.
4.

Usually do not have voting rights

Features of preference share:

Claim on income and assets- Preference share is a senior security as compared to an

ordinary share. It has prior claim on the companys income over equity shareholder
in payment of dividend. It also has a prior claim on the companys assets in the case
of liquidation of the company. Thus, in terms of risk preference share is less risky
than the equity share.

Fixed dividend- The dividend rate is fixed in the case of a preference share, and
preference dividend is not tax deductible. The preference dividend rate is expressed
as a percentage of the par value. Preference share is also called the fixed- income
security

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Cumulative dividends- Most preference shares in India carry a cumulative dividend

feature, requiring that all past unpaid dividend are to be paid before any ordinary
dividends are paid.

Redemption- Theoretically, both redeemable and perpetual preference shares can be

issued. Perpetual preference share does not have a maturity date.

Types of preference share

Cumulative preference share

Non cumulative preference share

Redeemable preference share

Irredeemable preference share

Equity share On the other hand this type of share dont carry a fixed rate of dividend.
Equity shareholder cannot claim as a matter of right since equity shareholders are the owners
of the company, they are entitled to all the residual profits and accumulated reserves of the
company after all its obligations to its creditors. In growing and expanding companies, an
equity shareholder gets a much higher rate of return on his investment than does a preference
shareholder.
Features of ordinary shares

Claim on income- Ordinary shareholders have a residual ownership claim. They have a
claim to the residual income, which is, earning available for ordinary shareholders, after
paying expenses, interest charges, taxes and preference dividend, if any. Dividends paid
on ordinary shares are not tax deductible for the company.

Claim on assets- Ordinary shareholders also have a residual claim on the companys
assets in the case of liquidation. Out of the realized value of assets, first claims of debtholders and then preference shareholders are satisfied, and then the remaining balance, if
any, is paid to ordinary shareholders.

Right to control- Ordinary shareholders have the legal power to elect directors on the
board. If the board fails to protect their interests, then they can replace directors.

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Ordinary shareholders are able to control the management of the company through their
voting rights and right to maintain proportionate ownership.

Voting rights- Ordinary shareholders are required to vote on a number of important

matters. The most significant proposal include: election of directors and change in the
memorandum of association. Each ordinary share carries one vote.

Pre-emptive rights- The pre-emptive right entitle a shareholder to maintain his

proportionate share of ownership in the company. The laws grant shareholders right to
purchase new shares in the same proportion as their current ownership.

Limited liability- Ordinary shareholders are the true owners of the company, but their
liability is limited to the amount of their investment in shares.

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Some other term in equity shareRight shares- Companies often require additional funds for their working capital, or for their
expansion and diversification program. They sometimes raise these funds by the sale of
additional equity shares on a right basis to its shareholder. Such shares are called right
shares because the companys shareholders have a prior right to buy these shares by virtue
of their existing shareholding .the number of right shares offered to each shareholder is
directly proportionate to the number of equity shares he owns rights shares could either be
offered at par, or at a premium. when such shares are offered for sale at their face value, they
are said to be .offered at par ,and when the sale price is higher, they are said to be offered at a
premium. Premium is the difference between the issue price of a share and its face value. In
order to make the issue attractive, the price of rights shares is invariably fixed at a level
below, the prevailing market price of the companys share. The issue of rights shares
increases the equity capital of the company but does not dilute an existing shareholders
proportionate ownership in the company, if he subscribes to his rights entitlement in full.
Fundamental analysis is done for long term investment and this will help the investor to select
the proper scripts for making the portfolio.

5.6Fundamental analysisA method of evaluating a security by attempting to measure its intrinsic value by examining
related economic, financial and other qualitative and quantitative factors. Fundamental analysts
attempt to study everything that can affect the securitys value, including macroeconomic factors
and individually specific factors.
The end goal of performing fundamental analysis is to produce a value that an
investor can compare with the securitys current price in hopes of figuring out what sort of
position to take with that security (underpriced=buy, overpriced= sell)
There are three dimensions under Fundamental Analysis
1. Economy analysis
2.

Industry analysis

3.

Company analysis

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5.6.1Economic analysis
Research Findings:
Stock price changes can be attributed tothe following factors
Economy-wide factors: 30-35 percent
Industry-wide factors: 15-20 percent
Company factors: 30-35 percent
Other factors: 10-15 percent
Economic forecasting
Short-term
Medium-term
Long-term
Forecasting approaches
Anticipatory surveys approach
Model building
Barometric/indicator approach
Characteristics of various stages of economy
Boom stage
Excess capacity creation
Excess demand for fund
Rising interest rates
Full employment
Intensive competition
Price cuttings
High GNP growth rate
Recession stage
Sectoral recession
Marginal firms face liquidity problems
Firms scale down operations
Rising unemployment
Falling income
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 Falling GNP growth rate

Depression
Closure of several units
Total lack of liquidity
Massive unemployment
Negative GNP growth rate
Recovery
Adjustment of demand-supply equilibrium due to closures
Reduction in interest rates
Revival of healthy units
New employment opportunities
Rising GNP growth rate
Prior to Boom Stage
Revival of sick unit
Rise in employment
Increase in income with people
Rise in demand
Rise in GNP growth rate
Leading Economic Indicators
Monsoons
GDS &GDI
New orders for plant & equip
No of new building permits issued
Avg weekly hrs of mfgprod workers
Ave weekly initial unemployment claims
Index of stock market prices
Money supply
Coincident Indicators
Employees on non-agricultural payrolls
Personal income
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 Industrial production
Mfg and trade sales
Lagging indicators
Avg duration of unemployment
Ratio of trade inventories to sales
Change in index of labour cost /unit
Average prime rate charged by banks
Commercial and industrial loans outstanding
Ratio of consumer credit to personal income
Change in consumer price index of services
Economic Outlook
GDP Growth rate
Revised Target for 11th FY plan:8-9 percent
Expected growth during 2011-12: 8.5percent
Savings rate: 32.4% of GDP
Investment rate: 33.8% of GDP
Higher growth together with the demographicdividend (from growing proportion of
thepopulation in the working age group) is likely tolead to a rise in the savings rate to finance
more
investments and hence reinforce growth itself.

5.6.2Industry analysis
Structural Analysis of Industry:
Porters Framework
Bargaining power of suppliers
Large and few suppliers, many buyers
No substitutes
Buyer industry not important customer
Sellers product important input
Differentiation of products/switching costs
Forward integration threat
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 Bargaining power of buyers

Concentration/large purchases relative to seller sales
Purchased products account for significant portion of buyers costs/purchases
Standard products
Fewer switching costs
Threat of backward integration
Buyer has full cost information
Threat of new entrants: entry/ exit barrier
Economies of scale/capital
Product differentiation
Switching costs
Access to distribution channels
Access to tech., raw materials, etc
Govt policy
Threat of retaliation
Substitute product
Intensity of competition
Numerous/equally balanced competitors
Slow industry growth
Lack of switching costs
Capacity augmentation in large increment
Low entry barriers and high exit barriers

5.6.3 Company analysis

There may be situations where the industry is very attractive but a few companies within it might
not doing well; similarly there may be one or two companies which may be doing exceedingly

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well while the rest of the companies in the industry might in the doldrums. An investor will have
to consider both the financial and non-financial aspect of the company.

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Analysing Financial Statements

Check for
Correctness
Completeness
Consistency
Comparability
Look for
Earnings from regular operations
Financial performance analysis
NPM
ROA
ROE
EPS
CEPS
PE or EP ratio
Dividend payout ratio
Leverage ratios
D/E ratio
Interest coverage ratio
ROA Analysis
ROA = (NS/TA)(EBIT/NS)
ROE Analysis
ROE =(PBT/NS)(PAT/PBT)(NS/TA)(TA/NW)

5.7PortfolioA combination of securities with different risk & return characteristics will constitute the
portfolio of the investor. Thus, a portfolio is the combination of various assets and/or instruments
of investments. The combination may have different features of risk & return, separate from
those of the components.
5.7.1 Portfolio designBefore designing a portfolio one will have to know the intention of the investor or the returns
that the investor is expecting from his investment. This will help in adjusting the amount of risk.
This becomes an important point from the point of view of the portfolio designer because if the
investor will be ready to take more risk at the same time he will also get more returns.
From the above discussion we can conclude that the investorscan be of the following three types:
1. Investors willing to takeminimum risk and at the same timeare also expecting minimum
returns.
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2. Investors willing to take moderate risk and at the same timeare also expecting moderate
returns.
3. Investors willing to takemaximum risk and at the same timeare also expecting maximum
returns.

5.7.2 Portfolio age relationship

AGEPORTFOLIO
Below 30

80% in equity

10% in cash
10% in fixed income
30 to 40

70% in equity

10% in cash
20% in fixed income
40 to 50

60% in equity

10% in cash
30% in fixed income
50 to 60

50% in equity

10% in cash
40% in fixed income
Above 60

40% in equity

10% in cash
50% in fixed income
These aren't hard and fast allocations, just guidelines to get youone think about how his/her
portfolio should look.

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5.7.3 Portfolio management:

Portfolio management is an art of putting money in fairly safe, quite profitable and reasonablyin
liquid form. An investors attempt to find the best combination of risk and return is the first
andusually the foremost goal. In choosing among different investment opportunities the
followingaspects risk management should be considered:
a) The selection of a level or risk and return that reflects the investors tolerance forrisk and
desire for return, i.e. personal preferences.
b) The management of investment alternatives to expand the set of opportunities available at the
investors acceptable risk level.
There are two ways of portfolio management1. Traditional portfolio management
2. Modern portfolio management
Traditional Portfolio Analysis
Intuition and insight
Improper method of quantifying risk and return
Combination of securities was portfolio
Objective of portfolio was to spread risk
Attempt to spread risk by not putting all eggs into one basket
Portfolio consisting of two stocks is less risky than one holding either stock alone
Modern Portfolio Analysis
Conceived by Harry Markowitz
Efficient diversification
Diversification involves combining securities with less than positive correlation in order
to reduce risk in the portfolio without sacrificing any of the portfolios return
Lower the correlation of securities in the portfolio, the less risky the portfolio is
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 It is not enough to invest in many securities; it is necessary to have the right securities
There are two theories of portfolio management under modern portfolio1. MARKOWITZ THEORY: Markowitz has suggested a systematic search for
optimal portfolio. According to him, the portfolio manager has to make probabilistic
estimates of the future performances of the securities and analyze these estimates to
determine an efficient set of portfolios. Then the optimum set of portfolio can be
selected in order to suit the needs of the investors.
The following are the assumptions of Markowitz Theory:
Investors make decisions on the basis of expected utility maximization.
In an efficient market, all investors react with full facts about all securities in the market.
Investors utility is the function of risk and return on securities.
The security returns are co-related to each other by combining the different securities.
The combination of securities is made in such a way that the investor gets maximum return
with minimum of risk.
An efficient portfolio exists, when there is lowest level of risk for a specified level of
expected return and highest expected return for a specified amount of portfolio risk.
The risk of portfolio can be reduced by adding investments in the portfolio.

2. SHARPES THEORY: William Sharpe has suggested a simplified method of

diversification of portfolios. He has made the estimates of the expected return and
Variance of indexes which are related to economic activity. Sharpes Theory assumes
that Securities returns are related to each other only through common relationships
with basic underlying factor i.e. market return index. Individual securities return is
determined solely by random factors and on its relationship to this underlying factor
with thefollowing formula:
Ri= ai + Bi I + ei
Where, Rirefers to expected return on security
ai= the intercept of a straight line or alpha coefficient
Bi = slope of straight-line or beta coefficient
I = level of market return index
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ei= error, i.e. residual risk of the company.

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There are two ways of portfolio selection in modern portfolio theory1. Markowitz Approach
Risk penalty = Variance/Risk tolerance
Utility = Expected return Risk penalty
Optimal portfolio for the investor would beone from the efficient frontier that maximizesutility
Utility indifference curves and types of investors

2. Sharpe Approach

Desirability of any stock is directly related to its excess return-to-beta ratio

If the stocks are ranked by excess-return-to-beta ratio, the ranking represents the
desirability of any stocks inclusion in a portfolio

The number of stocks selected depends on a unique cut-off rate such that all stocks
withhigher ratios of excess return-to-beta will be included and all stocks with lower ratio
excluded

Following is the process of determining which stocks are to be included in the optimum
portfolio:
Calculate the excess return-to-beta ratio for each stock under review and the rank
themfrom highest to lowest.

Calculate the cutoff point; optimum portfolio consists of all the stocks for which
excessreturn-to-beta ratio is greater than the cut-off point

Consideration of new securities

Any new security having excess returns-to beta ratio greater than the cut-off
value can be added to the portfolio
Any new security having excess returns- to beta ratio of less than the cut-off
value is not to be considered

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6.Methodology
6.1 Sample
We have mainly concentrated on convenience sampling. I have taken 14 securities of CNX
Midcap on the basis of fundamental analysis. The selected companies are:Table.1 List of the CNX Midcap companies

S. No.
1
2

Company Name
Amtek Auto
Apollo Hospitals

Industry
Automobile
Miscellaneous

3
4
5
6
7
8
9
10
11
12

Enterprises
Aurobindo Pharma
Cummins India Ltd
Educomp Solutions
Exide Industries
LIC Housing Finance
Lupin
Indraprastha Gas
IFCI
IDBI Bank
Power Finance

Pharmaceuticals
Automobile
Computer
Automobile
Financial
Pharmaceuticals
Petrochemicals
Financial
Bank
Financial

13
14

Corporation
Punj Llyod
Titan Industries

Construction
Watch

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6.2Data collection
Primary data : - Primary data are collected by my regularly tracking the stock price of
various script selected.
Secondary data :- Secondary data are collected from various journals , websites and
financial news paper.

6.3 Data analysis method

I have done data analysis with the help of MS EXCEL.

7.Procedure Of Work
The project was carried out in a pre-planned manner and completed on time. The procedure of
work during the project is as follows:

Introduction about the company

Study the financial market as a whole

Get the knowledge about the basic types of securities in the financial market and types of
shares in stock market

Understanding the working of NSE and BSE

Understanding the working of demat account

Understand about thefundamental analysis.

Then selected scripts from the CNX Midcap with the help of the fundamental analysis

Understanding of the portfolio management

Talk to the investors who want to invest in the portfolio and suggested the scripts which
should be added in their portfolio.

Then prepared the final portfolio for the investor.

Finally, evaluate the portfolio whether it will perform good or bad

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6. Analysis
As the basics of finance, the stock picking is done with the help of the fundamental analysis
which includes economy analysis, industry analysis and company analysis. First the economic
conditions of the country is analyzed which influences the stock market a lot then industry
analysis is done to analyze the strength and weakness of particular industry and then the
company analysis of the 14 companies is done out of which 10 companies are selected as a
financially sound companies for portfolio. I have given more emphasis on the company analysis
to forecast the management performance and financial strength and used the following ratios
NPM, ROA, ROE, P/E ratio, EPS, Debt/Equity ratio, Interest coverage ratio, quick ratio, current
ratio, dividend payout ratio. I have done the time series analysis of the ratios in which ratios of a
particular year is compared with the ratios of the previous years of the same company.
Disclosure All the calculations are in the Appendix II
Now the companies which I have selected, are they really going to offer the investor a good
return or not, for that we should have to find out the risk and return profile of each security, how
they are moving as the change in CNXMidcap index. So once it found then the investor must
evaluate such securities by Sharpe portfolio model, which will say what should be the size of
yourportfolio as well as weight of investment for particular securities. So Risk andreturn of such
securities are as follows.
Risk free rate of return=8%
Market return= 38.28%

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Table2. Risk and Return of the Securities selected for Portfolio

EXCES
S
ALP

BET

RET(E

ER/BE

RS

VARIAN

SYS

UNSYS

STOCK
APOLLO

HA

A
0.4

E
19.67

R)

TA
25.946

CE

RISK
191.11

RISK

HOSPITALS
AUROBIND

2.45

5
1.3

6
52.78

11.676
44.789

67
33.931

0.2
0.5

988.8

95
1644.4

797.6805
1488.602

2.26

2
0.6

96
28.80

6
20.807

52
31.056

2
0.4

3133.08

77
423.67

88
534.0481

CUMMINS

3.16

7
0.5

76
20.01

6
12.015

12
20.364

4
0.1

957.72

18
328.53

8
1421.423

EDUCOMP

-2.57

9
0.9

52
38.40

2
30.401

75
31.341

8
0.6

1749.96

68
888.02

22
521.0185

EXIDE

1.27

7
1.0

16
41.74

6
33.745

86
30.958

3
0.5

1409.04

14
1121.3

8
839.7112

IDBI
LIC

0.02

9
1.1

52
44.90

2
36.909

9
32.376

7
0.5

1961.04

29
1226.5

2
907.2775

HOUSING

1.27

4
0.4

92
21.45

2
13.454

49

8
0.2

2133.84

62
217.45

2
603.9484

LUPIN
PUNJ

3.08

8
1.6

44
55.02

4
47.029

28.03
28.676

821.4

15
2538.4

8
2481.155

LLYOD

-7.75

4
0.6

92
30.25

2
22.254

34
33.719

0.5
0.4

5019.6

44
411.11

52
491.2807

TITAN

4.99

48

39

902.4

93

Disclosure
Above all data are calculated on the basis of prices of each securities from 1 st April 2009
to31st March 2011
Cov. to Market indicates covariance between securities and CNX Midcap index.
All the above details are shown in the annexure

8.1Simple Sharpe portfolio optimization

Page 31

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

of including a stock in the optimal portfolio. The desirability of any stocks directly related to its
excess return-to-beta ratio. If stocks are ranked byexcess return to beta (from highest to lowest),
the ranking represents thedesirability of any stocks inclusion in a portfolio. The number of
stocks selecteddepends on unique cut-off rate such that all stocks with higher ratio of {(R i Rf)/
i} will be included and all stocks with lower ration excluded.
Step 1 Ranking Securities
Excess return to beta ratio= (Ri Rf)/ i
Ri = Expected return on stock i
Rf = Return on a riskless asset
BETA = Expected change in the rate of return on stock i associated with a 1% change
in the market return
Current Risk Free Rate 8%

Table3. Ranking of the Securities on the basis of Excess Return to Beta

ER/BE

BET

UNSYS

STOCK

TA

E
52.7

ER
44.78

RISK
1488.6

AUROBINDO

33.93

1.32

9
30.2

96
22.25

029
491.28

TITAN

33.72

0.66

55
44.9

48
36.90

072
907.27

LIC HOUSING

32.38

1.14

09
38.4

92
30.40

752
521.01

EXIDE

31.34

0.97

02
28.8

16
20.80

858
534.04

CUMMINS

31.06

0.67

08
41.7

76
33.74

818
839.71

IDBI

30.96

1.09

45
55.0

52
47.02

122
2481.1

PUNJ LLYOD

28.68

1.64

29

92

555
Page 32

21.4

13.45

603.94

LUPIN
APOLLO

28.03

0.48

54
19.6

44
11.67

848
797.68

HOSPITAL

25.95

0.45

76
20.0

6
12.01

05
1421.4

EDUCOMP

20.36

0.59

15

52

232

As shown in the above table, excess returns to beta ratio are already ranked fromhighest to
lowest. So selecting the optimal portfolio involves the comparison of (Ri Rf)/ iwith C*(cut-off
rate). Here we have to find out cut-off rate, which will help in selecting securities for our
optimum portfolio. Securitieswhose excess return to betaratio is lower than the cut-off rate are
excluded from the portfolio.
Step 2 Establishing Cut-off Rate

For a portfolio of i stock, C is given by

i
2m

(Ri-Rf)i
2ei

i=0
Ci =

where
2m= variance in the market index

2ei = variance of a stocks movement that is

(1)

not associated with the movement of

1 + 2m 2i /2ei

the market index; that is the stocks

i=0

unsystematic risk.
Table4. Cut-Off Value of the Securities

ER/BET

(ER)B/

Bsq/U

SUM(ER)

SUM(BSQ/

STOCK
AUROBIN

BETA

UR
0.039

R
0.001

B/UR

UR)

C
17.80

DO

33.93
33.719

1.32

717
0.029

17
0.000

0.039717

0.00117

982
22.33

TITAN
LIC

39
32.376

0.66

898
0.046

887
0.001

0.069614

0.002057

589
25.49

HOUSING

49
31.341

1.14

377
0.056

432
0.001

0.115991

0.00349

746
27.15

EXIDE

86
31.056

0.97

6
0.026

806
0.000

0.172591

0.005295

824
27.61

CUMMINS

12

0.67

105

841

0.198695

0.006136

358
Page 33

30.958

0.043

0.001

28.16

IDBI
PUNJ

9
28.676

1.09

803
0.031

415
0.001

0.242499

0.007551

329
28.22

LLYOD

34

1.64

085
0.010

084
0.000

0.273584

0.008635

066
28.21

LUPIN
APOLLO

28.03
25.946

0.48

693
0.006

381
0.000

0.284277

0.009016

344
28.15

HOSPITAL

67
20.364

0.45

587
0.004

254
0.000

0.290864

0.00927

773
27.97

EDUCOMP

75

0.59

987

245

0.295852

0.009515

726

All securities, whose excess return-to-beta ratio is above the cut-off rate, areselected and all
whose ratios are below are rejected.The value of C* is computed from the characteristics of all
of the securities thatbelong in the optimum portfolio. So here first 6 companies are those
whoseexcess return to beta ratio are more than Ci. Now to determine C*, we will take thelast
securities as per ranked which is proving our condition i.e. excess return tobeta more than that of
Ci. So the cut-off rate will be (C*) = 28.22

Step 3 Computation of investment in each of the selected stock:

Once we know which securities are to be included in the optimum portfolio, we must calculate
the percent invested in each security. The percentage invested in each security is:
Zi
wi =

Zj

(2)

i=1

where
i

Ri Rf

C*

Zi =

2ei

(3)

The second expression determines the relative investment in each securities, andthe first
expression simply scales the weights on each securities so that they sumto 1 (ensure full
investment).

Page 34

Table5. Weightage of each Security in the Portfolio

ER/BE
STOCK
AUROBIN

B/UR
0.000

TA

Z
0.005

W
0.0437

W(%)
4.373

DO

887
0.001

33.93

06
0.007

346
0.0637

464
6.379

TITAN
LIC

343
0.001

33.72

39
0.005

979
0.0450

788
4.509

HOUSING

257
0.001

32.38

22
0.005

974
0.0501

744
5.018

EXIDE

862
0.001

31.34

81
0.003

844
0.0307

442
3.072

CUMMINS

255
0.032

31.06

56
0.088

218
0.7638

184
76.38

IDBI
PUNJ

301
0.000

30.96

45
0.000

625
0.00260

625
0.260

LLYOD

661

28.68

3
0.115

12

124

SUM

79

100

Page 35

Fig1. Stock Portfolio Composition

Page 36

8.2 Risk and Return of Portfolio.

There are seven securities in optimum portfolio. So following formulas are used tofind out risk
and return profile for the securities
Table6. Risk and Return of the Portfolio
W*BET
STOCK

E
W
52.78 0.043

E*W
2.308

BETA

A
0.0577

UR
1488

Wsq*UR
65.1035

AUROBINDO

96
73
30.25 0.063

73
1.930

1.32

3
0.0421

.6
491.

06
31.3426

TITAN

48
8
44.90 0.045

19
2.025

0.66

07
0.0514

28
907.

67
40.9158

LIC HOUSING

92
1
38.40 0.050

29
1.927

1.14

11
0.0486

28
521.

97
26.1470

EXIDE

16
18
28.80 0.030

16
0.885

0.97

79
0.0205

02
534.

13
16.4069

CUMMINS

76
72
41.74 0.763

02
31.88

0.67

84
0.8326

05
839.

4
641.423

IDBI

52
86
55.02 0.002

76
0.143

1.09

1
0.0042

71
2481

95
6.45409

14
41.10

1.64

66
1.0573

.2

15
827.794

RETURN

71
1055.

SUM

86

SUM

07

SYSTEMATIC RISK

23
827.7

UNSYSTEMATIC RISK
PORTFOLIO

94
1883.

RISK(VARIANCE)
RISK
RETURN

02

RATIO(VAR/EXPEC

45.80

RET)

77

PUNJ LLYOD
92
EXPECTED PORFOLIO

Page 37

8.3Portfolio performance evaluation:

1. Jensen ratio= Rp E(Rp)
E(RP)= Rf +p(Rm- Rf)
Where,
Rf= 8% ,Rm = 38.28% , Rp = 41.1%, p = 1.05
E(RP)= 39.79
Jensen ratio= 1.31
Jensen ratio is positive so performance of portfolio is good on the Jensen scale
2. Sharpe ratio- It is the ratio of the reward or risk premium to variability of return as
measured by the standard deviation of return. The formulae for calculating sharpe ratio:
SR= (Rp-Rf)p
SR= 2.66 for portfolio
SR= 3.47 for market
Sharpe ratio of market is greater than the portfolio so on the sharpe evaluation ratio portfolio is
not performing good.
3. Famas net selectivity= Rp E(Rp)

E(RP)= Rf+p(Rm-Rf)/m
p= 12.5, m= 8.87
E(Rp)= 50.67
Famas net selectivity= -9.56
Famas net selectivity ratio is negative so performance of portfolio is not good on the Famas net
selectivity scale.
Page 38

7. Findings
1. On the basis of fundamental analysis we selected 10 companies out of 14 companies
which are looking good for the long term investment
2. Portfolio which I have made is not optimum portfolio because risk- return ratio of
portfolio is greater than some of the securities.
3. Portfolio beta is near about one. This means my portfolio is as volatile as the market.
4. I have evaluated the portfolio by three different ratios but only one ratios shows that the
portfolio will perform well while the other two ratios shows that the portfolio will not
perform well.

Page 39

Recommendations
Investors can also analyze the shareholding pattern of different companies. The experts
in stock market speak that if foreign institutional investors and mutual funds hold high
percentage in total companys share holding, company has good potential for growth.
Because FIIs and MFs have good research techniques to observe the companies
financial performance thats why they are willing to invest for particular companies in
India.
While preparing the portfolio, the investors should consider Midcap companies also, if
they are providing good returns. The portfolio of the investors should be diversified in
such a way that it consist the whole market behavior i.e. it should have qualities of
Largecap, Smallcap as well as Midcap companies.

Page 40

Limitations

Because of this limited period of only 2 months, I have chosen only SEVEN companies
which are giving good return in the portfolio. But in market there are lots of securities
which offer more return as compared to the selected securities.
Due to insufficient data given in the financial statement, some financial ratio could not
be found out.
Indian stock market is not stable. It keeps on fluctuating so ratio derived today may not
consider as useful tool of valuation tomorrow.
As the study is depending on the information from the different sources, the reliability
of study is depending on the reliability of information.

Page 41

Conclusion
Since the stock market is very dynamic and volatile, it is important for investors to invest there
money in the portfolio. This project tries to provide basic idea of different stock market
investment instruments to investor and prepare an optimum portfolio for the investors to
minimize risk without sacrificing the return in the long term investment. We have done
fundamental analysis of the selected fourteen CNX Midcap companies and then selected ten
companies for preparing portfolio. Portfolio is prepares by modern Sharpe approach.
The findings suggest that portfolio which we have made is not optimum portfolio because riskreturn ratio of portfolio is greater than some of the securities. So, our portfolio is somewhat a
risky portfolio but when we have done the evaluation of the portfolio by the Sharpe ratio we
found that our portfolio will perform well in the market. Portfolio beta is near about one. This
means our portfolio is as volatile as the market.
The investors are suggested to analyze the shareholding pattern of the companies before
investing in any company. Midcap companies are growth companies and having more reasonable
price than the large cap companies security. There are many midcap companies which give good
returns so investors should also consider midcap companies in their portfolio with the large cap
companies.

Page 42

References
Authored Book
1. Donald E. Fischer and Ronald J. Jordan, Security Analysis and Portfolio Management
(Pearson, Prentice Hall, 2009), pp. 113-292, pp. 571-644
2. I M Pandey, Financial Management (Vikas Publishing House Pvt. Ltd, 2010),
pp. 91-108, pp. 582-601

E- Book
1. B. Hiriyappa , Investment Management
2. Benjamin Graham, Security Analysis

Websites
1. www.reliancemoney.com
2. www.bseindia.com
3. www.nseindia.com
4. www.moneycontrol.com
5. www.investopedia.com
6. www.wikipedia.com

Page 43

14. Annexure
Annexure I
Reliance Money
Products Range

Trading Portal

Financial Products
Gold Coins
Retailing

Equity Broking

Commodity
Broking

Mutual Funds

Life Insurance

Wealth Management
Services

Financial Planning
Derivatives
(Futures &
Options)

General Insurance

IPOs

Money Transfer &

Loans

Demat Account
NFOs

Fig.2 Reliance Securities Product Range

Page 44

Annexure 2
Table7. Ratio Analysis of Selected 14 CNX Midcap Companies

year(Aurobindo) 2005-06 2006-07 2007-08

2008-09 2009-10
Current Ratio
1.16
1.4
1.35
1.12
1.05
Quick Ratio
2.7
3.86
2.97
2.99
2.28
Net Profit Margin
(%)
4.89
11.74
12.41
4.54
16.09
RETURN ON
NET WORTH
(%)
7.66
24.65
23.82
9.73
27.46
Return On Capital
Employed(%)
7.21
9.65
11.76
13.53
17.54
Return on Assets
(%)
2.77
174.19
227.02
245.67
343.51
Earnings Per
Share
13.02
42.94
54.08
23.91
94.34
Dividend Per
Share
1.5
2.5
3.25
4.5
5
Dividend payout
0.11520 0.05822 0.060096 0.18820 0.052999
ratio
7
1
2
6
8
54.1589 12.6408 3.102810 38.2266 13.96438
P/E RATIO
9
9
7
8
4
Debt Equity Ratio
1.33
2.13
1.44
1.6
1.02
Interest Cover
2.71
3.99
6.64
6.44
12.47
Face Value
5
5
5
5
5
market price
705.15
542.8
167.8
914 1,317.40
book value
169.97
174.19
227.02
245.67
343.51
4.14867 3.11613 0.739141 3.72043
p/b ratio
3
8
9
8 3.835114
year(Amtek
auto)
2005-06 2006-07 2007-08
2008-09 2009-10
Current Ratio
6.01
7.93
3.34
1.44
1.64
Quick Ratio
9.57
11.15
3.82
5.7
6.06
Net Profit
Margin(%)
14.11
18.45
20.39
19.49
12.76
RETURN ON
NET WORTH
(%)
12.5
12.35
13.96
11.22
5.98
Return On Capital
Employed(%)
7.52
7.74
10.38
6.32
4.67
Return on Assets
(%)
5.53
5.21
128.82
165.09
180.35
Page 45

Earnings Per
Share
Dividend Per
Share
Dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value
p/b ratio

13.36

18.03

18.53

10.8

7.09

1.4

2
0.11092
6
23.5967
8
1.24
11.34
2
425.45
129.15
3.29423
2

3
0.161899
6
3.645439
8
0.75
12.42
2
67.55
165.25
0.408774
6

0.5
0.04629
6
16.0555
6
1
9.52
2
173.4
180.35
0.96146
4

0.5
0.070521
9
19.54160
8
1.32
4.47
2
138.55
180.7
0.766740
5

0.10479
26.7552
4
1.24
9.34
2
357.45
108.12
3.30604
9

year(Educomp)
2005-06 2006-07 2007-08
2008-09 2009-10
Current Ratio
2.86
3.18
3.7
1.84
2.79
Quick Ratio
5.21
4.4
5.39
2.29
3.68
Net Profit
Margin(%)
25.89
25.54
25.51
25.84
26.02
RETURN ON
NET WORTH
(%)
15.42
24.98
25.15
34.34
18.34
Return On Capital
Employed(%)
22.54
19.82
16.28
22.58
22
Return on Assets
(%)
11.84
71.72
161.49
221.61
127.28
Earnings Per
Share
8.72
17.92
40.62
76.12
23.35
Dividend Per
Share
1.5
2
2.5
2.5
2.75
Dividend payout
0.17201 0.11160
0.03284
ratio
8
7 0.061546
3 0.117773
265.092
9.37401 22.78800
P/E RATIO
109.633
1 59.17159
5
9
Debt Equity Ratio
0.11
1.09
1.32
1.36
0.49
Interest Cover
44.88
35.71
25.42
17.81
10.78
Face Value
10
10
10
10
2
market price
956 4750.45
2403.55
713.55
532.1
book value
56.59
71.75
161.51
221.61
127.28
16.8934 66.2083 14.88174 3.21984 4.180546
p/b ratio
4
6
1
6
8
year(Punj Lloyd) 2005-06

2006-07

2007-08

2008-09

2009-10
Page 46

Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value
p/b ratio

1.53
1.37

1.28
1.42

2.32
1.33

2.26
1.15

3.34
1.73

2.54

2.71

4.87

4.61

4.87

3.33

5.61

9.17

12.3

10.27

11.03

10.22

11.92

12.42

9.55

1.8

42.04

79.57

85.97

107.71

6.73

2.36

7.3

10.58

11.06

1
0.14858
8
152.979
2
0.39
3.45
10
1029.55
202.04
5.09577
3

0.3
0.12711
9
235.042
4
1.38
3.87
2
554.7
42.04
13.1945
8

0.4
0.054794
5
20.14383
6
0.57
4.01
2
147.05
79.57
1.848058
3

0.3
0.02835
5
19.3809
1
1.13
3.55
2
205.05
85.97
2.38513
4

0.15
0.013562
4
10.11302
0.98
2.56
2
111.85
107.71
1.038436
5

year(IFCI)
2005-06 2006-07 2007-08
2008-09 2009-10
Current Ratio
8.66
8.54
7.35
6.79
8.65
Quick Ratio
8.66
6.68
6.1
5.61
7.67
Net Profit
Margin(%)
-11.26
42.84
49.7
46.38
39.95
RETURN ON
NET WORTH
(%)
5.09
196.12
41.18
23.08
21.28
Return On Capital
Employed(%)
3.89
14.66
22.42
13.48
7.53
Return on Assets
(%)
-1.56
0.25
29.47
37.09
58.9
Earnings Per
Share
-2.78
13.68
12.14
8.56
9.09
Dividend Per
Share
0
0
0
0.8
1
dividend payout
0.09345
ratio
0
0
0
8 0.110011
Page 47

P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value
p/b ratio

4.35971
4.19406
0.53
10
12.12
-61.37
0.19749

6.79824
6
11.6899
4
2.79
10
93
0.25
372

1.783360
8
3.074703
7
3.54
10
21.65
29.47
0.734645
4

6.34929
9
2.58604
7
2.2
10
54.35
37.09
1.46535
5

7.403740
4
2.942092
9
1.44
10
67.3
58.9
1.142614
6

year(Apollo
Hospital)
2005-06 2006-07 2007-08
2008-09 2009-10
Current Ratio
1.49
1.66
1.71
1.76
1.61
Quick Ratio
1.33
1.48
1.64
1.64
1.65
Net Profit
Margin(%)
8.37
11.12
8.91
7.98
8.2
RETURN ON
NET WORTH
(%)
9.2
13.28
8.31
8.66
9.85
Return On Capital
Employed(%)
13.55
13.38
10.17
10.9
11.57
Return on Assets
(%)
6.13
144.41
208.43
226.29
249.54
Earnings Per
Share
11.9
19.38
17.34
19.6
24.6
Dividend Per
Share
4.5
5
6
6.5
7
Dividend payout
0.37815 0.25799 0.346020 0.33163 0.284552
ratio
1
8
8
3
8
36.0966 27.1026 26.04671 33.4438 18.46138
P/E RATIO
4
8
3
8
2
Debt Equity Ratio
0.13
0.19
0.25
0.33
0.45
Interest Cover
10.27
8.24
9.12
12.22
7.71
Face Value
10
10
10
10
10
market price
429.55
525.25
451.65
655.5
454.15
book value
129.35
144.56
208.48
226.3
249.54
3.32083 3.63343 2.166394 2.89659 1.819948
p/b ratio
5
9
9
7
7
year(IDBI)
Current Ratio
Quick Ratio
Net Profit
Margin(%)

2005-06 2006-07 2007-08

2008-09 2009-10
0.12
0.11
0.05
0.04
0.03
6.89
7.55
9.07
18.98
19.49
8.47

8.74

7.84

6.71

5.95
Page 48

RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
Dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value
p/b ratio
year(Cummins
India)
Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
Dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover

9.12

10

10.72

11.53

12.53

7.79

7.57

8.07

8.55

8.61

0.63

86.09

93.82

102.71

113.5

7.75

8.7

10.06

11.85

14.23

1.5
0.19354
8
9.84516
1
4.08

1.5
0.17241
4

2.5

19
6.95

2
0.198807
2
6.724652
1
10.74

0.21097
10.7552
7
15.1

3
0.210822
2
11.57765
3
20.38

10
76.3
88.04
0.86665
2

10
165.3
86.09
1.92008
4

10
67.65
93.82
0.721061
6

10
127.45
102.71
1.24087
2

10
164.75
113.5
1.451541
9

2005-06
1.96
1.36

2006-07
2.03
1.36

2007-08
1.54
1.14

2008-09
1.8
1.25

2009-10
1.58
1.05

11.37

11.84

11.45

12.63

14.96

22.53

24.6

23.36

28.36

28.82

30.83

35.74

33

39.74

39.02

15.21

46.95

55.74

70.44

78.84

8.87

12.22

14.18

21.9

22.42

4
0.45095
8
31.2908
7
0.01
270.8

4
0.32733
2
33.9975
5
-236.94

4.6
0.324400
6
15.62411
8
0.03
560.73

9
0.41095
9
19.5593
6
0.02
215.79

12
0.535236
4
34.84612
0.01
298.67
Page 49

Face Value
market price
book value
p/b ratio
year(Lupin)
Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
Dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value
p/b ratio
year(Exide
Industry)
Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)

2
277.55
39.61
7.00706
9

2
415.45
46.95
8.84877
5

2005-06
1.15
2.18

2
221.55
55.74
3.974704

2
428.35
70.44
6.08106
2

2
781.25
78.84
9.90931

2006-07
1.22
2.02

2007-08
0.97
1.63

2008-09
0.83
1.02

2009-10
0.96
1.68

10.98

14.89

16.3

14.09

17.52

28.37

34

33.66

30.31

25.64

17.61

18.79

27.58

22.04

22.49

8.99

110.57

160.46

166.06

284.51

45.52

37.6

54.02

50.35

72.96

6.5
0.14279
4
13.4457
4
1.42
9.05
10
612.05
160.42
3.81529
7

5
0.13297
9
16.8537
2
0.97
8.88
10
633.7
110.57
5.73121
1

10
12.5
0.185116 0.24826
6
2
11.43743 29.5988
1
1
0.73
0.69
18.31
12.32
10
10
617.85 1,490.30
160.46
166.06
3.850492 8.97446
3
7

13.5
0.185032
9
6.585115
1
0.36
27.25
10
480.45
284.51
1.688692
8

2005-06
0.99
0.59

2006-07
0.94
0.38

2007-08
1.14
0.48

2008-09
1.08
0.55

2009-10
1.39
0.46

6.49

7.43

7.92

7.55

12.7

19.98

24.72

25.29

23.35

24.53

22.25

27.18

30.55

31.67

36.16
Page 50

Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
Dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value
p/b ratio
year(Indrapasth
a Gas)
Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value

8.53

8.37

12.37

15.22

25.76

13.43

2.07

3.13

3.55

6.32

3
0.22338
2.75874
9
0.57
7.26
10
37.05
67.22
0.55117
5

0.35
0.16908
2
36.3768
1
0.52
9.08
1
75.3
8.37
8.99641
6

0.4
0.127795
5
15.38338
7
0.35
10.72
1
48.15
12.37
3.892481
8

0.6
0.16901
4
32.5493
0.26
14.11
1
115.55
15.22
7.59198
4

1
0.158227
8
26.39240
5
0.04
117.11
1
166.8
25.76
6.475155
3

2005-06
0.8
0.73

2006-07
0.86
0.8

2007-08
1.1
1.05

2008-09
1.1
1.05

2009-10
0.91
0.81

19.85

21.86

23.75

19.5

19.6

27.81

29.31

44.74

45.56

30.08
46.51320
1

24.96
39.2189
3

26.1
39.30583
3

15.84

33.39

41.18

48.82

58.96

7.58

9.85

12.46

12.32

15.39

2.5
0.32981
5
15.2902
4
0

3
0.30456
9

4
0.321027
3
8.174157
3
0
31.61910
4
10
101.85
41.18

4
0.32467
5
16.1323
1
0
24.2341
8
10
198.75
48.82

4.5
0.292397
7
22.27095
5
0

78.23
10
115.9
27.05

17.5533
0
24.7386
8
10
172.9
33.39

10
342.75
58.96
Page 51

p/b ratio
year(LIC
Housing
Finance)
Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
dividend payout
ratio
P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value
p/b ratio
year(Power
Finance)
Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets

4.28465
8

5.17819
7

2.473288

4.07107
7

5.813263
2

2005-06
20.66
25.73

2006-07
14.98
20.31

2007-08
16.95
19.02

2008-09
12.08
16.26

2009-10
13.32
18.45

16.52

17.82

17.82

18.37

19.05

15.5

18.08

21.13

23.79

19.54

7.34

8.05

9.08

9.88

8.7

1.33

181.77

215.66

263.04

356.85

24.56

32.87

45.59

62.59

69.75

6
0.2443
6.57369
7
10.24
1.3
10
161.45
158.42
1.01912
6

8
0.24338
3
11.6200
2
10.58
1.31
10
381.95
181.77
2.10128
2

10
0.219346
3
5.057030
1
11.11
1.35
10
230.55
215.66
1.069043
9

13
0.20770
1
12.8383
1
11.38
1.36
10
803.55
263.04
3.05485
9

15
0.215053
8
2.803584
2
10.26
1.38
10
195.55
356.85
0.547989
4

2005-06
9.31
20.68

2006-07
8.31
14.12

2007-08
8.81
14.67

2008-09
13.51
18.7

2009-10
22.61
22.61

31.04

25.77

23.95

29.91

29.18

11.93

10.03

11.6

15.86

16.92

8.76
2.64

8.67
85.6

9.69
90.58

9.97
108.18

9.76
121.32
Page 52

(%)
Earnings Per
Share
Dividend Per
Share
Dividend payout
ratio

9.42

8.59

10.51

17.16

20.54

3.51
0.37261
1

2.41
0.28055
9
30.5587
9
3.42
1.63
10
262.5
85.6
3.06658
9

3.5
0.333016
2
12.65461
5
3.91
1.6
10
133
90.58
1.468315
3

4
0.2331
15.2156
2
4.2
1.57
10
261.1
108.18
2.41357

4.5
0.219084
7
15.08763
4
4.82
1.61
10
309.9
121.32
2.554401
6

2005-06
1.08
0.7

2006-07
1.04
0.42

2007-08
1.12
0.27

2008-09
1.31
0.26

2009-10
1.39
0.35

4.98

4.4

4.92

4.08

5.34

31.65

28.81

34.45

28.83

34.55

27.07

29.2

34.19

42.68

48.67

8.26

72.82

98.26

124.18

163.19

16.77

21.16

33.85

35.81

56.39

3
0.17889
1

5
0.23629
5

8
0.236336
8

15
0.266004
6

P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value

51.2254
1.6
4.58
10
859.05
45.55

p/b ratio

18.8595

73.8327
0.75
6.72
10
1562.3
73.77
21.1779
9

27.39291
0.59
11.78
10
927.25
98.26
9.436698
6

10
0.27925
2
39.7109
7
0.32
10.54
10
1422.05
124.18
11.4515
2

P/E RATIO
Debt Equity Ratio
Interest Cover
Face Value
market price
book value

3.31
1.72
10
78.98

p/b ratio
year(Titan
Industry)
Current Ratio
Quick Ratio
Net Profit
Margin(%)
RETURN ON
NET WORTH
(%)
Return On Capital
Employed(%)
Return on Assets
(%)
Earnings Per
Share
Dividend Per
Share
Dividend payout
ratio

63.86416
0.1
15.26
10
3601.3
163.19
22.06814
1
Page 53

Annexure 3
Table8. Risk and Return of Individual Securities
APPOLO HOSPITALAPOLLO
ADJUSTE
COMPAN
Month
HOSPITAL
D
CNX MIDCAP
Y RET
Apr-09
384.8
384.8
3860.8
May-09
513.15
513.15
5353.55
28.78
Jun-09
572.35
572.35
5427.25
10.92
Jul-09
553.55
553.55
5950.2
-3.34
Aug-09
525
525
6117.9
-5.30
Sep-09
548.25
548.25
6713.3
4.33
Oct-09
534.6
534.6
6579.8
-2.52
Nov-09
528.45
528.45
7149.2
-1.16
Dec-09
655.5
655.5
7132.8
21.55
Jan-10
684.15
684.15
7201.85
4.28
Feb-10
687
687
7167.25
0.42
Mar-10
729.9
729.9
7704.9
6.06
Apr-10
782.55
782.55
8061.1
6.97
May-10
742.95
742.95
7755.95
-5.19
Jun-10
751.45
751.45
8130.85
1.14
Jul-10
783.6
783.6
8415.3
4.19
Aug-10
805.9
805.9
8679.85
2.81
Sep-10
455.65
911.3
9164.25
12.29
Oct-10
521.9
1043.8
9360.7
13.58
Nov-10
479.15
958.3
8907.5
-8.55
Dec-10
454.15
908.3
8857.2
-5.36
Jan-11
490.4
980.8
7299.5
7.68
Feb-11
464.8
929.6
7370.1
-5.36
Mar-11
471.2
942.4
8040.15
1.37
AVG
3.89
STOCK SPLIT ON
SEPTEMBER 2010 IN THE
RATIO OF 10:5
STD
9.08
VARIANCE
82.40
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)

CNX RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.20
2.45
0.45
Page 54

COVRIANCE
BETA(COVAR/MVA
R)

34.02
0.43

AUROBINDO PHARMAAUROBIN
ADJUST
COMPAN
Month
DO
ED
CNX MIDCAP
Y RET
Apr-09
221.6
221.6
3860.8
May-09
387.55
387.55
5353.55
55.90
Jun-09
465.5
465.5
5427.25
18.33
Jul-09
589.65
589.65
5950.2
23.64
Aug-09
704.3
704.3
6117.9
17.77
Sep-09
779.1
779.1
6713.3
10.09
Oct-09
749.25
749.25
6579.8
-3.91
Nov-09
855.9
855.9
7149.2
13.31
Dec-09
914
914
7132.8
6.57
Jan-10
845.65
845.65
7201.85
-7.77
Feb-10
914
914
7167.25
7.77
Mar-10
958.8
958.8
7704.9
4.79
Apr-10
951.95
951.95
8061.1
-0.72
May-10
854.6
854.6
7755.95
-10.79
Jun-10
910.55
910.55
8130.85
6.34
Jul-10
973.8
973.8
8415.3
6.72
Aug-10
1039.6
1039.6
8679.85
6.54
Sep-10
1040.4
1040.4
9164.25
0.08
Oct-10
1179.65
1179.65
9360.7
12.56
Nov-10
1249.15
1249.15
8907.5
5.72
Dec-10
1317.4
1317.4
8857.2
5.32
Jan-11
1186.85
1186.85
7299.5
-10.44
Feb-11
170
850
7370.1
-33.38
Mar-11
195.9
979.5
8040.15
14.18
AVG
6.46
STOCK SPLIT ON FEB 2011 IN
THE
STD
16.16
RATIO OF 10:2
VARIANCE
261.09
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVA
R)

CNX
RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.52
2.26
1.32
99.11
1.26

Page 55

CUMMINS INDIACUMMI
ADJUSTE
COMPAN
Month
NS
D
CNX MIDCAP
Y RET
Apr-09
202.35
202.35
3860.8
May-09
276.7
276.7
5353.55
31.29
Jun-09
277.05
277.05
5427.25
0.13
Jul-09
275.2
275.2
5950.2
-0.67
Aug-09
337.6
337.6
6117.9
20.44
Sep-09
349.3
349.3
6713.3
3.41
Oct-09
375.25
375.25
6579.8
7.17
Nov-09
390.05
390.05
7149.2
3.87
Dec-09
428.35
428.35
7132.8
9.37
Jan-10
448.7
448.7
7201.85
4.64
Feb-10
455
455
7167.25
1.39
Mar-10
513.6
513.6
7704.9
12.11
Apr-10
569.75
569.75
8061.1
10.38
May-10
560.25
560.25
7755.95
-1.68
Jun-10
596.05
596.05
8130.85
6.19
Jul-10
635.7
635.7
8415.3
6.44
Aug-10
737.3
737.3
8679.85
14.83
Sep-10
738.9
738.9
9164.25
0.22
Oct-10
793.1
793.1
9360.7
7.08
Nov-10
797.1
797.1
8907.5
0.50
Dec-10
781.25
781.25
8857.2
-2.01
Jan-11
727.1
727.1
7299.5
-7.18
Feb-11
650.05
650.05
7370.1
-11.20
Mar-11
684.55
684.55
8040.15
5.17
AVG
5.30
STD
8.93
VARIANCE
79.81
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVA
R)

CNX RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.44
3.16
0.67
50.54
0.64

Page 56

EDUCOMP SOLUTIONEDUCOM
COMPAN
Month
P
ADJUSTED
CNX MIDCAP
Y RET
Apr-09
2474.25
2474.25
3860.8
May-09
2823.55
2823.55
5353.55
13.21
Jun-09
3784.75
3784.75
5427.25
29.30
Jul-09
4107.5
4107.5
5950.2
8.18
Aug-09
4117.55
4117.55
6117.9
0.24
Sep-09
4693
4693
6713.3
13.08
Oct-09
800.6
4003
6579.8
-15.90
Nov-09
758.95
3794.75
7149.2
-5.34
Dec-09
713.55
3567.75
7132.8
-6.17
Jan-10
700.95
3504.75
7201.85
-1.78
Feb-10
670.15
3350.75
7167.25
-4.49
Mar-10
747.85
3739.25
7704.9
10.97
Apr-10
681.25
3406.25
8061.1
-9.33
May-10
535.3
2676.5
7755.95
-24.11
Jun-10
532.35
2661.75
8130.85
-0.55
Jul-10
607.7
3038.5
8415.3
13.24
Aug-10
544.35
2721.75
8679.85
-11.01
Sep-10
609.5
3047.5
9164.25
11.30
Oct-10
550.3
2751.5
9360.7
-10.22
Nov-10
563.4
2817
8907.5
2.35
Dec-10
532.1
2660.5
8857.2
-5.72
Jan-11
473.55
2367.75
7299.5
-11.66
Feb-11
467.6
2338
7370.1
-1.26
Mar-11
420.5
2102.5
8040.15
-10.62
AVG
-0.71
STOCK SPLIT ON OCTOBER 2009
IN THE
STD
12.08
RATIO OF 10:2
VARIANCE
145.83
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVA
R)

CNX RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.18
-2.57
0.59
44.04
0.56

Page 57

Page 58

EXIDE INDUSTRIESEXID
EXIDE
COMPANY
Month
E IND IND
CNX MIDCAP
RET
Apr-09
52.3
52.3
3860.8
May-09
70.7
70.7
5353.55
30.14
Jun-09
69.3
69.3
5427.25
-2.00
Jul-09
85.8
85.8
5950.2
21.36
Aug-09
95.7
95.7
6117.9
10.92
Sep-09
92
92
6713.3
-3.94
Oct-09
98.45
98.45
6579.8
6.78
Nov-09 108.05
108.05
7149.2
9.30
Dec-09 115.55
115.55
7132.8
6.71
Jan-10 111.55
111.55
7201.85
-3.52
Feb-10 107.35
107.35
7167.25
-3.84
Mar-10
124.1
124.1
7704.9
14.50
Apr-10
122.3
122.3
8061.1
-1.46
May-10 119.15
119.15
7755.95
-2.61
Jun-10 131.65
131.65
8130.85
9.98
Jul-10
145.3
145.3
8415.3
9.87
Aug-10
147.9
147.9
8679.85
1.77
Sep-10
163.1
163.1
9164.25
9.78
Oct-10 154.65
154.65
9360.7
-5.32
Nov-10 160.95
160.95
8907.5
3.99
Dec-10
166.8
166.8
8857.2
3.57
Jan-11
128.4
128.4
7299.5
-26.16
Feb-11 136.25
136.25
7370.1
5.93
Mar-11 142.75
142.75
8040.15
4.66
AVG
4.37
STD
10.84
VARIANCE
117.42
RSQ
INTERCEPT(ALPHA
)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVA
R)

CNX RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.63
1.27
0.97
73.06
0.93

Page 59

IDBIADJUSTE
COMPAN
Month
IDBI
D
CNX MIDCAP
Y RET
Apr-09
63.6
63.6
3860.8
May-09
93.2
93.2
5353.55
38.21
Jun-09
109.9
109.9
5427.25
16.48
Jul-09
105.7
105.7
5950.2
-3.90
Aug-09 103.85
103.85
6117.9
-1.77
Sep-09
127.2
127.2
6713.3
20.28
Oct-09 113.65
113.65
6579.8
-11.26
Nov-09
121.8
121.8
7149.2
6.93
Dec-09 127.45
127.45
7132.8
4.53
Jan-10
121.1
121.1
7201.85
-5.11
Feb-10 118.95
118.95
7167.25
-1.79
Mar-10
115
115
7704.9
-3.38
Apr-10 125.95
125.95
8061.1
9.10
May-10
113.7
113.7
7755.95
-10.23
Jun-10 119.15
119.15
8130.85
4.68
Jul-10 119.05
119.05
8415.3
-0.08
Aug-10 121.45
121.45
8679.85
2.00
Sep-10
152.4
152.4
9164.25
22.70
Oct-10 180.65
180.65
9360.7
17.01
Nov-10 163.35
163.35
8907.5
-10.07
Dec-10 164.75
164.75
8857.2
0.85
Jan-11
141.4
141.4
7299.5
-15.28
Feb-11 131.35
131.35
7370.1
-7.37
Mar-11 142.45
142.45
8040.15
8.11
AVG
3.51
STD
12.77
VARIANCE
163.12
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVA
R)

CNX
RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.57
0.02
1.09
82.14
1.04

Page 60

LIC HOUSING FINANCELIC

HOUSIN ADJUSTE
COMPAN
Month
G
D
CNX MIDCAP
Y RET
Apr-09
364.05
364.05
3860.8
May-09
528.65
528.65
5353.55
37.30
Jun-09
618.7
618.7
5427.25
15.73
Jul-09
615.5
615.5
5950.2
-0.52
Aug-09
646.55
646.55
6117.9
4.92
Sep-09
771.5
771.5
6713.3
17.67
Oct-09
742.55
742.55
6579.8
-3.82
Nov-09
860.4
860.4
7149.2
14.73
Dec-09
803.55
803.55
7132.8
-6.84
Jan-10
773.25
773.25
7201.85
-3.84
Feb-10
752.9
752.9
7167.25
-2.67
Mar-10
872
872
7704.9
14.69
Apr-10
958.1
958.1
8061.1
9.42
May-10
938.85
938.85
7755.95
-2.03
Jun-10
997.5
997.5
8130.85
6.06
Jul-10
1136.45
1136.45
8415.3
13.04
Aug-10
1202.3
1202.3
8679.85
5.63
Sep-10
1436.85
1436.85
9164.25
17.82
Oct-10
1338.9
1338.9
9360.7
-7.06
Nov-10
998.85
998.85
8907.5
-29.30
Dec-10
195.55
977.75
8857.2
-2.14
Jan-11
180.15
900.75
7299.5
-8.20
Feb-11
188.1
940.5
7370.1
4.32
Mar-11
225.45
1127.25
8040.15
18.11
AVG
4.91
STOCK SPLIT ON DECEMBER
2010 IN
STD
13.33
THE RATIO OF
10:2
VARIANCE
177.82
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVA
R)

CNX
RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.58
1.27
1.14
86.04
1.09

Page 61

LUPINMonth
LUPIN ADJUSTED CNX MIDCAP
Apr-09
717.05
717.05
3860.8
May-09
833.85
833.85
5353.55
Jun-09
817.1
817.1
5427.25
Jul-09
945.9
945.9
5950.2
Aug-09 1015.15
1015.15
6117.9
Sep-09 1136.85
1136.85
6713.3
Oct-09 1226.25
1226.25
6579.8
Nov-09 1374.45
1374.45
7149.2
Dec-09
1490.3
1490.3
7132.8
Jan-10 1420.45
1420.45
7201.85
Feb-10 1497.65
1497.65
7167.25
Mar-10 1624.55
1624.55
7704.9
Apr-10 1707.75
1707.75
8061.1
May-10
1861
1861
7755.95
Jun-10
1966.1
1966.1
8130.85
Jul-10
1878.6
1878.6
8415.3
Aug-10
356.05
1780.25
8679.85
Sep-10
388.55
1942.75
9164.25
Oct-10
438.2
2191
9360.7
Nov-10
509.85
2549.25
8907.5
Dec-10
480.45
2402.25
8857.2
Jan-11
422.6
2113
7299.5
Feb-11
381.75
1908.75
7370.1
Mar-11
415.35
2076.75
8040.15
AVG
STOCK SPLIT ON AUGUST IN
STD
THE RATIO OF
10:2
VARIANCE
RSQ
INTERCEPT(ALPHA)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVAR)

COMPANY
RET

CNX
RET

15.09
-2.03
14.64
7.07
11.32
7.57
11.41
8.09
-4.80
5.29
8.13
4.99
8.59
5.49
-4.55
-5.38
8.74
12.03
15.14
-5.94
-12.83
-10.17
8.44
4.62
8.27

32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87

68.45

78.65
0.27
3.08
0.48
36.35
0.46

Page 62

PUNJ LLYODPUNJ
ADJUSTE
COMPAN
Month
LLYOD D
CNX MIDCAP
Y RET
Apr-09
115.85
115.85
3860.8
May-09
203.65
203.65
5353.55
56.41
Jun-09
209.65
209.65
5427.25
2.90
Jul-09
246.5
246.5
5950.2
16.19
Aug-09
268.9
268.9
6117.9
8.70
Sep-09
267.3
267.3
6713.3
-0.60
Oct-09
202.1
202.1
6579.8
-27.96
Nov-09
198.5
198.5
7149.2
-1.80
Dec-09
205.05
205.05
7132.8
3.25
Jan-10
187.35
187.35
7201.85
-9.03
Feb-10
174.9
174.9
7167.25
-6.88
Mar-10
177.4
177.4
7704.9
1.42
Apr-10
165.05
165.05
8061.1
-7.22
May-10
120.05
120.05
7755.95
-31.83
Jun-10
136.1
136.1
8130.85
12.55
Jul-10
126.55
126.55
8415.3
-7.28
Aug-10
105.3
105.3
8679.85
-18.38
Sep-10
126.6
126.6
9164.25
18.42
Oct-10
117.85
117.85
9360.7
-7.16
Nov-10
98.5
98.5
8907.5
-17.94
Dec-10
111.85
111.85
8857.2
12.71
Jan-11
94.4
94.4
7299.5
-16.96
Feb-11
59.95
59.95
7370.1
-45.40
Mar-11
64.7
64.7
8040.15
7.63
AVG
-2.53
STD
20.45
VARIANCE
418.30
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MVA
R)

CNX
RET
32.69
1.37
9.20
2.78
9.29
-2.01
8.30
-0.23
0.96
-0.48
7.23
4.52
-3.86
4.72
3.44
3.10
5.43
2.12
-4.96
-0.57
-19.34
0.96
8.70
3.19
8.87
78.65
0.50
-7.75
1.64
123.12
1.57

Page 63

TITANTITA ADJUST
COMPAN CNX
Month N
ED
CNX MIDCAP
Y RET RET
Apr-09 748.4
748.4
3860.8
1073.
May-09
95
1073.95
5353.55
36.12 32.69
Jun-09 1173.9
1173.9
5427.25
8.90
1.37
1226.
Jul-09
75
1226.75
5950.2
4.40
9.20
1229.
Aug-09
95
1229.95
6117.9
0.26
2.78
1249.
Sep-09
1
1249.1
6713.3
1.54
9.29
1255.
Oct-09
4
1255.4
6579.8
0.50
-2.01
1331.
Nov-09
25
1331.25
7149.2
5.87
8.30
1422.
Dec-09
05
1422.05
7132.8
6.60
-0.23
1498.
Jan-10
8
1498.8
7201.85
5.26
0.96
1748.
Feb-10
95
1748.95
7167.25
15.44
-0.48
1840.
Mar-10
9
1840.9
7704.9
5.12
7.23
2129.
Apr-10
45
2129.45
8061.1
14.56
4.52
2225.
May-10
1
2225.1
7755.95
4.39
-3.86
2365.
Jun-10
55
2365.55
8130.85
6.12
4.72
2802.
Jul-10
4
2802.4
8415.3
16.95
3.44
2932.
Aug-10
75
2932.75
8679.85
4.55
3.10
3279.
Sep-10
05
3279.05
9164.25
11.16
5.43
3553.
Oct-10
45
3553.45
9360.7
8.04
2.12
3698.
Nov-10
65
3698.65
8907.5
4.00
-4.96
3601.
Dec-10
3
3601.3
8857.2
-2.67
-0.57
Page 64

Jan-11
Feb-11
Mar-11

3593.
05
3328.
6
3810.
85

3593.05

7299.5

-0.23

-19.34

3328.6

7370.1

-7.64

0.96

3810.85

8040.15

13.53
7.08
8.67
75.20

8.70
3.19
8.87
78.65
0.45

AVG
STD
VARIANCE
RSQ
INTERCEPT(ALPH
A)
SLOPE(BETA)
COVRIANCE
BETA(COVAR/MV
AR)

4.99
0.66
49.32
0.63

Page 65