Warehouse Management

A Summer Internship Project Report on
Study on Warehouse Operations

Submitted in partial fulfillment of the requirement for the degree of
Master of Business Administration
(Affiliated to Savitribai Phule Pune University)
By
Nayanesh Wankhede
Roll No. Supply Chain Management - 07
Under the guidance of

Prof. Vinayak Dravid
A study conducted for
E-Squire Healthcare and Logistics

(3PL of US Based Kimberley Healthcare)
At
Indira Institute of Management

Tathwade, Pune – 411033
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Acknowledgement
Accomplishment of a task with desired success calls for dedication towards work and prompting
guidance, co-operation and deliberation from seniors.
At the outset, I would like to thank Prof. Vinayak Dravid, Assistant Professor, Indira Institute
of Management for her unconditional support and professional approach in guiding me through the
careful details of the project.
I am very grateful to my company guide, Mr. Mohan Nair who not only helped me on this topic
but also helped me to understand the nuances of capital market. In spite of having a very busy
schedule, they made sure in every way that we acquire the best possible exposure and knowledge
during our project.
I would be failing in my duty if I do not express my deep sense of gratitude to all the faculty
members for their valuable advice and guidance in this project. I am also thankful to our college
Director Dr. Pandit Mali.
Nayanesh Pundlik Wankhede

(MBA II- SCM)
Indira Institute of Management
2
COLLEGE CERTIFICATE
This is to certify that Mr. Vinayak Vasantrao Kumbhar is a Bonafaid student of Indira Institute
of Management, Pune and has successfully completed her project entitled “Study On Warehouse
Management” at E-squire Healthcare and Logistics. For partial fulfillment of the course Master
of Business Administration (Supply Chain Management), affiliated to Savitribai Phule Pune
University from Indira Institute of Management, Pune.
Prof. Dr. Pandit Mali Prof. Vinayak Dravid

Director, Internal Project Guide
Indira Institute of Management, Pune. Indira Institute of Management,
Pune.
3
4
DECLARATION
This is to certify that Mr. Vinayak Vasantrao Kumbhar is a bonafide student of Indira Institute of
Management- Pune and has successfully completed project entitled “Warehouse Management for partial
fulfilment of the course Master of Business Administration (Supply Chain Management) from Indira
Institute of Management, Pune.
It is the best of my knowledge and belief. I hereby declare that this project is not being submitted to any
other university or institute towards the award of any degree.
Place: Pune Vinayak Vasantrao Kumbhar
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Index
Sr. No. Content Page No.
1 Introduction 5
2 Sector Profile 8
3 Organizational Profile and Business Overview 27
4 Outline of Task Undertaken 30
5 Literature Review 36
6 Objectives and Scope Of Project 40
7 - Research Methodology 44
8 Analysis and Findings 49
9 Conclusions 55
Key Learning and Contribution To The Host

10 58
Organization
6
EXECUTIVE SUMMARY
The Internship gave me the 0pp0rtunity t0 have a c0mprehensive study 0n Equity Research wherein the
different functi0ns and 0perati0ns 0f the area was being underst00d and had a hands-0n experience. The
learning includes c0untry analysis, sect0rial analysis and c0mpany analysis. The main task assigned as a
part 0f insurance is the sales 0f insurance plan which includes identifying the need 0f the cust0mer and
advising them a suitable plan keeping in mind their purp0se, risk, age and risk-taking ability (c0nsidering
age as the main fact0r) and 0ther fact0rs. The subsequent r0le which has been assigned is 0f equity research
and rec0mmendati0n 0f buying. This research will be extended in depth f0r 0ne industry and based 0n the
0utc0me further rec0mmendati0n will be updated. The strategies t0 maximize the pr0fit with respect t0
risk t0 rewards rati0 was experienced 0n the real-time basis. The f0cus 0f the internship was t0 understand
the tw0 main aspects 0f investment in Equity markets were Fundamental and technical analysis. The D0w
the0ry w0rk which says there is three p0ssible m0vement in the market such as up trend, d0wn trend and
sideways. The internship had a learning 0f marketing as well as finance t0 where it includes pr0ducts sales
0f financial investment instrument and equity research.
I have prepared this project report on Study on Equity research analysis of Automobile Sector (Maruti
Suzuki, Tata, Mahindra and Force) as a part of Finance Specialization. Basically this project has been
undertaken at Aditya Birla Sunlife Ins. Co. Ltd. This project is Important for investors. An investor wants
to invest his money in various kinds of securities but each and every investment contains some level of
risk and as a reward he gets the return. But before making an investment in particular security he makes
the analysis on the particular security.
Objectives of the project:

 To do analysis and to find out what is intrinsic value of the company in relation to the current market
price at which shares are trading in the market.
 To analyze whether market price is overvalued or undervalued on the basis of intrinsic value that is
calculated.
 To analyze performance of the company.
 To analyze which company is a particular sector will give best returns to its shareholders.
Methodology adopted:
The project is on equity research analysis of sectors. Hence Study has been done on basis of secondary
data by various modes which are available. Major Secondary data was collected from the internet and
company websites. Company websites were a major source for collecting the annual reports of the
company.
Learning from the project:

1. Equity: Learning of secondary market process of buy-sell stocks with Stock Exchange which takes
place in real time.
2. Different existing investment schemes of mutual funds and related investment.
3. How insurance industry works.
Utility to the organization:
1. Helpful for the financial position of selected company
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2. To show the competitors information
3. What are the investment opportunity in sector
4. Helpful for the equity research.
Conclusion:
1. This study is helpful to do deep research of equity to know the impact of all economic and non-
economic factors on the market price of equity.
2. The study is also helpful to track the record of the company for the period of last five years and also
current position of the company in the market
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CHAPTER I: INTRODUCTION AND RATIONALE OF THE STUDY
Equity research means analyzing financials, perform ratio analysis, forecast financials & to explore
scenarios with the objective of making BUY/SELL recommendation on the stock investment. So, for
analyzing we need to go through valuation of stocks in equity research.
The valuation is challenging part of equity research. The main use of this valuation is to forecast future
market prices, and thus to benefit from the stock price Movement. Stocks that are examined as undervalued
are purchased, while stocks that are examined as overvalued are sold off, with the expectation that
undervalued stocks will increase in value, and overvalued stocks will decrease in value.
There are many methods to value the stock of a company one can use relative approach through which
one can compare multiples and metrics in relation with other firm or one can even use absolute approach
through the use of dividend discount method and many other available methods to find intrinsic value of
the firm
INTRODUCTION TO EQUITY
What is Equity?
In accounting and finance, equity is the residual claim or interest of the most junior class of Investors in
assets, after all liabilities are paid. If valuations placed on assets do not exceed Liabilities, negative equity
exists. In an accounting context, Shareholders equity (or Stockholders equity, shareholders’ funds,
shareholders capital or similar terms) represent the Remaining interest in assets of a company, spread
among individual shareholders of common or preferred stock.
Equity Shares:
An equity share, commonly referred to as ordinary share also represents the form of fractional or part
ownership in which a shareholder, as a fractional owner, undertakes the maximum Entrepreneurial risk
associated with a business venture. The holders of such shares are members of the company and have
voting rights.
Derivatives:
A derivative is a financial instrument that gets its value from some real good or stock. It is the derived
value of an underlying asset. It is, in its most basic form, simply a contract between two parties to exchange
value based on the action of a real good or service. Typically, the seller receives money in exchange for
an agreement to purchase or sell some good or service at some specified future date.
Equity Investment:
Equity investment generally refers to buying and holding of shares of stock on a stock market by
individuals and firms in anticipation of income from dividend and capital gain as the value of the stock
rises. It also sometimes refers to the acquisition of equity (ownership) participation in private (unlisted)
company or start up (a company being created or newly created). When investment is in infant companies,
it is referred to as venture capital investing and is generally understood to be higher risk than investment
in listed going-concern situation.
Purpose of equity research is to study companies, analyze financials, and look at quantitative and
qualitative aspects mainly for decision: Whether to invest or not. To be able to value equity, we need to
first understand how equity is to be analyzed. Equity Share of any company can be analyzed through:
 Fundamental Analysis
 Technical Analysis
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Fundamental Analysis:
Fundamental Analysis is a method of evaluating a security that entails 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 security's value, including
macroeconomic factors (like the overall economy and industry conditions) and company-specific factors
(like financial condition and management).
The end goal of performing fundamental analysis is to produce a value that an investor can compare with
the security's current price, with the aim of figuring out what sort of position to take with that security
(underpriced = buy, overpriced = sell or short).
Fundamental analysis is performed on historical and present data, but with the goal of making financial
forecasts. There are several possible objectives:
 To conduct a company stock valuation and predict its probable price evolution,
 To make a projection on its business performance,
 To evaluate its management and make projected decisions
Fundamental analysis includes:

1. Economic analysis
2. Industry analysis
3. Company analysis
On the basis of these three analyses the intrinsic value of the shares are determined. This is considered as
the true value of the share. If the intrinsic value is higher than the market price it is recommended to buy
the share. If it is equal to market price then hold the share and if it is less than the market price then sell
the shares.
TYPES OF FUNDAMENTAL ANALYSIS:

1. Quantitative Factors
2. Qualitative Factors
The various fundamental factors can be grouped into two categories: quantitative and qualitative.
 Qualitative - related to or based on the quality or character of something, often as opposed to its size
or quantity.
 Quantitative - capable of being measured or expressed in numerical terms.
QUALITATIVE FACTOR – THE INDUSTRY

Each industry has differences in terms of its customer base, market share among firms,
Industry-wide growth, competition, regulation and business cycles. Learning about how the
Industry works will give an investor a deeper understanding of a company’s financial health.
 Customers
 Market Share
 Industry Growth
 Competition
QUALITATIVE FACTOR – THE COMPANY
Before diving into a company’s financial statements, let’s take a look at some of the qualitative aspects of
a company. Following are the qualitative factors of the company that investor should be aware of-
 Business Model
 Competitive Advantage
 Management
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Instead, here are a few ways for to get a feel for management:
1. Management Discussion and Analysis (MD&A)
2. Past Performance
3. Conference Calls
Quantitative Factors
Now as we know the qualitative factor of fundamental analysis, let’s proceed to the quantitative factor of
the fundamental analysis. Quantitative factor include analysis of financial statement of the company.
Ratio Analysis
Financial ratios are tools for interpreting financial statements to provide a basis for valuing
Securities and appraising financial and management performance. In general, there are 3 kinds
Of financial ratios that a financial analyst will use most frequently, these are:
 Working capital ratios
 Liquidity ratios
 Solvency ratios
TECHNICAL ANALYSIS:
Technical analysis is a financial term used to denote a security analysis discipline for
Forecasting the direction of prices through the study of past market data, primarily price and
Volume. Behavioral economics and quantitative analysis incorporate technical analysis, which
being an aspect of active management stands in contradiction to much of modern portfolio
Theory.
Most large brokerage, trading group, or financial institutions will typically have both a Technical analysis
and fundamental analysis team.
Significance of the study
The study is helpful in the following direction:
This study is helpful to do deep research of equity to know the impact of all economic and non-economic
factors on the market price of equity. To find out precisely that market price is overvalued or undervalued
by how much amount and why? The study is also helpful to track the record of the company for the period
of last five years and also current position of the company in the market
CHAPTER II: INDUSTRY/ SECTOR PROFILE
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Overview of the industry/ sector:
The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-
year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of
commercial vehicles in 2018.
India is also a prominent auto exporter and has strong export growth expectations for the near future.
Automobile exports grew 14.5 percent during FY 2019. It is expected to grow at a CAGR of 3.05 per cent
during 2016-2026. In addition, several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the two-wheeler and four wheeler
market in the world by 2020.
Market Size:
Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19 with 26.27 million
vehicles getting sold in FY19 .Domestic automobile production increased at 6.96 per cent CAGR between
FY13-19 with 30.92 million vehicles manufactured in the country in FY19. In FY19, year-on-year growth
in domestic sales among all the categories was recorded in commercial vehicles at 17.55 per cent followed
by 10.27 per cent year-on-year growth in the sales of three-wheelers.
Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.
Investments:
In order to keep up with the growing demand, several auto makers have started investing heavily in various
segments of the industry during the last few months. The industry has attracted Foreign Direct Investment
(FDI) worth US$ 21.38 billion during the period April 2000 to March 2019, according to data released by
Department for Promotion of Industry and Internal Trade (DPIIT).
Some of the recent/planned investments and developments in the automobile sector in India are as follows:
 Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch
20-25 new models across various commercial vehicle categories in 2018-19.
 Hyundai is planning to invest US$ 1 billion in India by 2020. SAIC Motor has also announced to
invest US$ 310 million in India.
 Mercedes Benz has increased the manufacturing capacity of its Chakan Plant to 20,000 units per year,
highest for any luxury car manufacturing in India.
 As of October 2018, Honda Motors Company is planning to set up its third factory in India for
launching hybrid and electric vehicles with the cost of Rs 9,200 crore (US$ 1.31 billion), its largest
investment in India so far.
 In November 2018, Mahindra Electric Mobility opened its electric technology manufacturing hub in
Bangalore with an investment of Rs 100 crore (US$ 14.25 million) which will increase its annual
manufacturing capacity to 25,000 units.
Government Initiatives:
The Government of India encourages foreign investment in the automobile sector and allows 100 per cent
FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -
The government aims to develop India as a global manufacturing centre and an R&D hub.
Under NATRiP, the Government of India is planning to set up R&D centres at a total cost of US$ 388.5
million to enable the industry to be on par with global standards
The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for
introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption
and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will also set up
incubation centre for start-ups working in electric vehicles space.
In February 2019, the Government of India approved the FAME-II scheme with a fund requirement of Rs
10,000 crore (US$ 1.39 billion) for FY20-22.
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Achievements:
Following are the achievements of the government in the past four years:
 Number of vehicles supported under FAME scheme increased from 5,197 in June 2015 to 192,451 in
March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-wheelers, 185 four-wheelers and 10
light commercial vehicles were supported under FAME scheme.
 Under National Automotive Testing And R&D Infrastructure Project (NATRIP), following testing
and research centres have been established in the country since 2015
 International Centre for Automotive Technology (ICAT), Manesar
 National Institute for Automotive Inspection, Maintenance & Training (NIAIMT), Silchar
 National Automotive Testing Tracks (NATRAX), Indore
 Automotive Research Association of India (ARAI), Pune
 Global Automotive Research Centre (GARC), Chennai
 SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres are being set up in the
country for promoting smart and advanced manufacturing helping SMEs to implement Industry 4.0
(automation and data exchange in manufacturing technology).
Road Ahead
The automobile industry is supported by various factors such as availability of skilled labour at low cost,
robust R&D centres and low cost steel production. The industry also provides great opportunities for
investment and direct and indirect employment to skilled and unskilled labour.
Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18
trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent in 2018.
Indian Automobile Industry

The automobile industry in India is world’s fourth largest, with the country currently being the world's
4th largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in 2018. Indian
automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion
(US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and made up 81 per cent share
in the domestic automobile sales in FY19. Overall, Domestic automobiles sales increased at 6.71 per cent
CAGR between FY13-18 with 26.27 million vehicles being sold in FY19. Indian automobile industry has
received Foreign Direct Investment (FDI) worth Rs.1,49,424 crores (US$ 21.38 billion) between April
2000 and March 2019.
The Indian government has also set up an ambitious target of having only electric vehicles being sold in
the country. Indian auto industry is expected to see 8-12 per cent increase in its hiring during FY19. The
Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction
of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The first phase of the scheme has been
extended to March 2019 while In February 2019, the Government of India approved the FAME-II scheme
with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22. Number of vehicles supported
under FAME scheme has increased to 192,451 units in March 2018 from 5,197 units in June 2015. On
29th July 2019, Inter-ministerial has sanctioned 5,645 electric buses for 65 cities.
Overall automobile exports reached 4.63 million vehicles in FY19, implying a CAGR of 8.11 per cent
between FY13-19. Automobile exports grew 14.50 per cent in FY19. It is expected to grow at a CAGR of
3.05 per cent during 2016-2026.
 Major players
These are the top Competitors of Automobile Industry:
 Maruti Suzuki
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 Tata Motors
 Mahindra & Mahindra
 Hyundai Motor India
 Honda Cars India
 Toyota Kirloskar
 Renault India
 Ford India
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CHAPTER III: ORGANIZATIONAL PROFILE AND BUSINESS OVERVIEW
Mission and Vision of the company
Mission:
To consistently pursue investor's wealth optimization by:
 Achieving superior and consistent investment results.
 Creating a conducive environment to hone and retain talent.
 Providing customer delight.
 Growth opportunities for its employees.
Vision:
 To be a leader and role model in a broad based and integrated financial services business.
 To be a Leader: Commitment to being a leader in their businesses
 To be a Role Model: Strive to be best
 To be a broad-based player: Meeting all needs of their target customer
 Integrated Player: Competitive edge through sharing of best practices.
ABCL endeavors to become a preferred and trusted financial services brand of choice for all their
customer’s needs across their life cycle.
Registered Address/ Number of branches:
Registered Office: One Indiabulls Centre Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati
Bapat Marg, Elphinstone Road, Mumbai – 400013
ABSLI has a network of 433 branches, 7 distribution channels and 6 Bank assurance Partners. About
80,000 advisors are empanelled with them in addition to Corporate Agents & Brokers.
Composition of Board:
Mr. Kumar Mangalam Birla- Chairman
Mr. Ajay Srinivasan- Non Executive Director
Mr. Bishwanath Puranmalka- Non Executive Director
Mr. Claude A. Accum- Non Executive Director
Mr. Arun Adhikari- Independent Director
Mr. Sandeep Asthana- Non Executive Director
Mr. Colm Freyne- Non Executive Director
Mr. Haigreve Khaitan- Independent Director
Mrs. Pinky Atul Mehta- Non Executive Director
Mr. Shobhan Thakore- Independent Director
Major customers:
Urban and Rural Investors
Financial performance:
Revenue of the company grew 29 per cent year on year to Rs16,570 crores. The company’s profit after
tax (after minority interest) reflected a significant growth of 26 per cent year on year to Rs871 crores,
largely driven by profit growth in NBFC, Housing Finance and Asset Management businesses.
Insurance:
Total gross premium of life insurance and health insurance grew by 30 per cent to Rs8,008 crores
Life Insurance business:
 Individual First Year Premium (FYP) grew a significant 60 per cent year on year, as against 9 per cent
for the industry (excl. LIC)
 Market share (excl. LIC) increased 125 bps year on year to 4. 2 per cent
 Consistent improvement in quality with 13th month persistency improving by 313 bps to 78.24 per
cent in FY 2018-19
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 Embedded value at Rs4900 crore, grew by 15 per cent year on year
 Sharp improvement in net VNB margin at 9.5 per cent vs. 4.3 per cent in previous year led by scale,
product mix and productivity improvements
Health Insurance business:

 Gross written premium at Rs497 crores, 2x over the previous year with retail business contributing 65
per cent
 Covering more than 2.3 million lives in its second year of full operation
 Rapid expansion in distribution capacity with 10 banca partners signed up
 Signed up with Axis bank in Q4 and will go live in Q1 FY 2019-20
Achievements:
Among the Top 5 Private Diversified NBFCs in India.
One of the largest Private Life Insurance Companies in India.
One of the largest General Insurance Brokers in the country.
Registered an AUM of INR. 2463 billion and 34% y-o-y growth as of 31st March, 2017.
Consolidated Lending Book has grown over 40% y-o-y to Rs 388 billion as of 31st March, 2017.
Awards and recognitions:

 Best Use of Innovation to Enhance Customer Experience at Customer Experience Awards for
empowering customers to track their insurance policy application status and use social log-in stands
as a unique process across the industry.
 Customer Experience Award 2018 for the Best Customer Centric Culture category was conferred by
KAMIKAZI.
 Won nine Medals: Four Gold for Kaizen implementation and five Silver for Six Sigma yellow belt
and Kaizens by Quality Circle Forum of India (QCFI) in 2017 across Finance & Accounts and
Operations.
 The ABSLI Risk Management team won the award for the Best Risk Management Team 2017 -
Insurance Business at the Legal Era Risk Award 2017.
Functional overview:
Aditya Birla Sun Life Insurance Company Limited (ABSLI) was established in 2000 as a joint venture
between the Sun Life Financial Inc, a leading international financial services organization from Canada,
and Aditya Birla Group.
With an experience of over 17 years, ABSLI has significantly contributed to the growth and development
of life insurance industry in India. ABSLI currently ranks amongst top 5 private life insurance companies
in the country. Known for its innovation and industry benchmarks, ABSLI has several firsts to its credit.
ABSLI was the first Indian Insurance Company to introduce “Free Look Period” and the same was made
mandatory by IRDA for all other life insurance companies. In addition to this ABSLI also pioneered the
launch of Unit Linked Life Insurance plans amongst the private players in India. To establish creditability
and transparency, ABSLI enjoys the prestige to be the originator of practice to disclose portfolio on
monthly basis. These development benefits have helped ABSLI be closer to its policy holders’
expectations which gets further accentuated by the complete bouquet of insurance products (viz. pure term
plan, life stage products, health plan and retirement plans) that the company offers.
Major product lines:
Aditya Birla Sun Life Insurance offers a wide variety of life insurance policies to its customers. The
different types of plans offered by the company are:
Protection Plans: People spend their working life striving to fulfil the big dreams for their families.
However, in an increasingly uncertain world, everyone needs to ensure that their family is free from any
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financial burden in case of any unfortunate events. This is where term life insurance comes in to provide
complete financial security for their family. Aditya Birla Sun Life Insurance Protection Solutions are
designed to give an individual a sizeable life cover at low premiums. Some of the protection solution plans
are as follows –
a) ABSLI Digi shield Plan
b) ABSLI Income Shield Plan
c) ABSLI Life Shield Plan
Wealth with protection Solutions: Everyone has dreams for their lives- the dream house, the luxury car,
the holiday abroad and many more. In order to achieve these dreams, it is important to have a financial
goal in mind and work towards achieving it. There are three plans under this category-
a) ABSLI Wealth Max Plan
b) ABSLI Wealth Secure Plan
c) ABSLI Wealth Assure Plan
d) ABSLI Fortune Elite Plan
e) ABSLI Wealth Aspire Plan
Children’s Future Plans: A child is a source of joy for every parent. Everyone works towards ensuring
that they have the means to meet the big future expenses of your child, be it for higher education, marriage
or any other dreams that you have for your child. Besides providing life cover, it ensures that child’s dream
is also secured by making payments at important junctions of his/her life.
 Vision Star Plan
Health and Wellness Solutions: With medical costs increasing considerably, many people find
themselves unprepared for sudden medical emergencies. Aditya Birla Sun Life Insurance Health &
Wellness Solutions ensures that an individual never lack the funds to go in for quality treatment in case
of medical emergencies. ABSLI also provides plans that offer the cashless facility. Some of the health and
wellness solution plans are as follows:
a) ABSLI Universal Health
b) ABSLI Health Plan.
Retirement Solutions: During retirement, income stops but the expenses don’t. With inflation increasing
the cost of basic essentials, savings today might not suffice meeting the cost of necessities throughout the
retired life. It is therefore important to start saving early and in a planned manner for a comfortable, stress-
free retired life. What is also important is to determine the retirement corpus on basis of your projected
needs during retired life. The Plans under the same are:
a) ABSLI Empower Pension Plan
b) ABSLI Immediate Annuity Plan
c) ABSLI Empower Pension –SP Plan
Savings with Protection Solutions: These plans offer a chance to systematically save money in small
amounts while providing large life cover and tax-free returns. The amount collected under this plan is
invested in Mutual Funds or other financial instruments in order to give higher returns. Some of the plans
are:
a) ABSLI Secure Plus Plan
b) ABSLI Vision Money Back Plus Plan
c) ABSLI Vision Life Income Plan
d) ABSLI Savings Plan
e) ABSLI Vision Life Secure Plan
g) ABSLI Income Assured Plan
h) ABSLI Vision Endowment Plus Plan
i) ABSLI Guaranteed Milestone Plan
j) ABSLI PoS – Jeevan Bachat Plan
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CHAPTER IV: OUTLINE OF PROBLEM/TASK UNDERTAKEN
 Identification of problem or task undertaken-
 The study is on past performance of stocks and the data, since secondary suffers from the
limitations of the secondary data.
 The measurements have been influenced by extreme values and may not show the useful results
to draw any inferences.
 Market forces are influenced by a number of factors which cannot be quantified and thus the
research is limited to the numbers available.
 Implication of existing problem or task on the host organization-
 Equity market is very volatile and unstable so it is not easy to analyze the future price of share
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CHAPTER V: LITERATURE REVIEW (RESEARCH PROJECT)
T. Mallikarjunappa and Shaini Naveen (2016) conducted a study on comparative analysis of risk and return
with reference to stocks of CNX Bank Nifty. This study analyzes the risk and returns in the banking sector.
They compare the performance of the 12 listed banks in the nifty bank index. The study also analyzes the
performance of banking stocks mainly to understand the required rate of return and risk of a particular
stock based on different risk elements prevailing in the market and other economic factors.
Dr. S. Krishnaprabha and Mr. M. Vijaykumar (2015) conducted a study on risk and return analysis of
selected stocks in India. Risk and return analysis play an important role in the decision making process of
most of the investors. Long term investors were able to take advantage of the market as it is less volatile.
As there is less fluctuation in the shares when compared to the market as well as its prices, the long term
investors are able to predict when the share will raise. The majority of information technology, fast moving
consumer goods, and pharmaceutical sectors give more return while compared to banking and automobile
sector.
Dr. Anubha Srivastava (2014) conducted a comprenhsive study of performance of Indian automobile
industry. In that study of the researcher analyses 3 major automobile companies in India that are Maruti,
Mahindra and Tata. The study found that the performance of the automobile sector is directly related to
the country’s economic trend. It is also found that Mahindra and Mahindra are the most correlated to the
auto index than the other two companies. The increasing demand and sales numbers of indian auto bring
many opportunities for these players.
Dr. M. Muthu Gopalkrishnan And Dr. K. V. Ramnathan (2013) conducted a study on volatility in indian
stock market- A study of post and prerecession period. In this study, the researchers try to analyse price
fluctuations in indian stock market. Estimating the volatility in the market will help the investors in
estimating or calculating their risk. They analyse the volatility of sectorial index listed in Nifty as on 28-
03-2013 using daily opening price, closing price, high and low prices of 31 selected companies. This study
helps in identifying volatility relationship during Pre-recession and Post-recession period.
S. Nagarajan and K. Prabhakaran (2013) conducted a study on equity analysis of selected FMCG
companies listed on NSE. They had used standard deviation, co-efficient of variation and beta for
analyzing the shares of various selected FMCG companies. They found that the Nestle India Ltd. Share
price has 53% relationship with nifty index. It was much lower than the other companies selected from the
FMCG sector.
Dr. P. Vikkreaman And P Varadharjan (2009) analysed the equity of selected companies in the automobile
industry for the period of 2004 to 2007. They use Beta and Alpha techniques for analyzing risk and return
of the automobile companies. The calculation of the return indicator and systematic risk provide a clear
understanding regarding the investment decisions on these companies.
19
CHAPTER VI: OBJECTIVES AND SCOPE OF PROJECT
Objectives:
 To do analysis and to find out what is intrinsic value of the company in relation to the current market
price at which shares are trading in the market.
 To find out whether market price is overvalued or undervalued on the basis of intrinsic value that is
calculated.
 To find out performance of the company.
 To analyze which company is a particular sector will give best returns to its shareholders.
Scope of the research: The research will help in knowing about the trends in the values of the stock price
of the two major vehicle producers in India. It will thus be giving knowledge to the readers about the
direction of these companies’ shares. The research will also be giving information and interfaces as to how
the balance sheets of these companies look like and how these companies are different from each other.
This will be helpful to those who are going to risk their money at the hands of these automobile producers.
The trends of the companies will also be compared to the industry as a whole and try to draw anything that
would help in understanding this industry better.
Limitations of the study:

 The study is on past performance of stocks and the data, since secondary suffers from the limitations
of the secondary data.
 The measurements have been influenced by extreme values and may not show the useful results to
draw any inferences.
 Market forces are influenced by a number of factors which cannot be quantified and thus the research
is limited to the numbers available.
 I have only taken four companies for equity analysis due to limited time period.
20
CHAPTER VII: RESEARCH METHODOLOGY (RESEARCH PROJECT)
Descriptive Study: Present Study has made in descriptive Study. Stock market has been the focus of study
for many of the researches and this research is based on the secondary data would try to find out the trends
prevailing in the automobile industries. The companies are taken into consideration for research are:
 Maruti Suzuki India Limited
 Mahindra and Mahindra Limited
 Tata Motors Ltd
 Force Motors Ltd
The data analysis has been done using top down approach and following are the subheading
Used for the data analysis:
Economic analysis: Following annual indicators have been used for recent years.
 GDP Analysis
 Inflation rate analysis
 Tax rate
 Interest rate
Industry analysis: Following indicators have been used:
 FDI inflow in automobile sector and sub sectors
 Annual Automobile sales
 Annual growth rate
Company analysis: Research using the calculation of financial ratios and complex forecasting of profits,
cash flows and dividends. Analysis gives a basis for the valuation of shares and decisions on when to buy,
sell and hold shares. The main tools used for company analysis is the ration analysis.
Technical analysis: A method of evaluating securities by analyzing statistics generated by market activity,
such as past prices and volume. Technical analysis do not attempt to measure security’s intrinsic value,
but instead use charts and other tools to identify patterns that can suggest future activity. Technical analysts
believe that the historical performance of stocks and markets are indications of future performance.
Data collection: The secondary data is collected from the annual reports of the company, relevant text
books on the subject matter and company’s official website. The analysis is based on secondary data
collected from various organizational databases, websites, newspapers and other necessary official
records, books & magazines.
21
CHAPTER VIII: ANALYSIS AND FINDINGS
Fundamental Analysis:
It is the examination of the underlying forces that affect the well-being of the economy, industry groups
and companies. As with most analysis, the goal is to derive a forecast and profit from future price
movements. Fundamental analysis may involve examination of financial data, management, business
concept and competition. At the industry level, there might be an examination of supply and demand forces
for the products offered. For the national economy, fundamental analysis might focus on economic data
to assess the present and future growth of the economy. To forecast future stock price fundamental
analysis, industry and company analysis to derive stock’s current fair value and forecast future value.
Economy Analysis:
Indian economy:
The economy of India is the 6th largest in the world measured by nominal GDP and the 3rd largest by
purchasing power parity (PPP). The country is classified as newly industrialized country, and one of the
G-20 Major economies. Maharashtra is the wealthiest Indian state with an annual nominal GDP of US$330
billion. It has emerged as the fastest growing major economy in the world as per the central statistics
organization (CSO) and International Monetary Fund (IMF). The GOI has forecasted that the Indian
economy will grow by 7.1 percent in FY 2016-17
Gross domestic product:

This is one of the primary indicators used to gauge the health of a county’s economy. India has one of the
fastest growing service sectors in the world which contributed to 45.4% of GDP in 2016. The Indian
economy advanced 6.1 percent year-on-year in the first quarter of 2017, slowing sharply from a 7 percent
expansion in the previous period and well below market expectation of 7.1 percent.
Inflation Rate:
Inflation is a sustained increase in the general price level of goods and services in an economy over a
period of time. When the price level rises, each unit of currency buys fewer goods and services
consequently, inflation reflects a reduction in the purchasing power per unit of money- a loss of real value
is the medium of exchange and unit of account within the economy.
Interest rate:
Interest rate affects the cost of financing and decrease in interest implies lower cost of finance for firm and
more profitability. Availability of cheap fund encourages speculation and rise in the price of shares. High
rate of interest discourages investment and stock market is negatively affected.
Exchange rate:
In 2016-17, the rupee has performed better than most other emerging market econonics. During 2016-17
(April-December) on year basis, the rupee depreciated by 3.4% against US dollar as compared to the
depreciation of Mexico Peso(14.4%), South African Rand (8.6%) and Chinese Renminbi(6.3%).
Tax Structure:
After implementation of goods and services tax(GST), the GST council has decided that business in the
north eastern and hill states with annual turnover below INR 10 Lakh would be out of the GST, while the
threshold for the exemption in the rest of india would be an annual turnover of INR 20 lakh.
Agriculture and Monsoon:

As per the first advance estimates, growth rate for the agriculture and allied sectors is estimated to be 4.1%
for 2016-17. Coming to monsoon, during the south west monsoon season of 2016 the country as a whole
received rainfall which was 97% of its long period average. Out of the total 36 metrological subdivisions,
4 subdivisions received excess rainfall, 23 subdivisions received normal rainfall and remaining 9
subdivisions received deficient rainfall.
22
Industry analysis:
Sector analysis:
The automobile industry in India is world’s fourth largest, with the country currently being the world's 4th
largest manufacturer of cars and 7th largest manufacturer of commercial vehicles in 2018. Indian
automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion
(US$ 251.4-282.8 billion) by 2026. Two-wheelers dominate the industry and made up 81 per cent share
in the domestic automobile sales in FY19. Overall, Domestic automobiles sales increased at 6.71 per cent
CAGR between FY13-18 with 26.27 million vehicles being sold in FY19. Indian automobile industry has
received Foreign Direct Investment (FDI) worth US$ 21.38 billion between April 2000 and March 2019.
The Indian government has also set up an ambitious target of having only electric vehicles being sold in
the country. Indian auto industry is expected to see 8-12 per cent increase in its hiring during FY19. The
Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction
of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and
Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The first phase of the scheme has been
extended to March 2019 while In February 2019, the Government of India approved the FAME-II scheme
with a fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22. Number of vehicles supported
under FAME scheme has increased to 192,451 units in March 2018 from 5,197 units in June 2015.
Automobile exports grew 14.50 per cent in FY19. It is expected to grow at a CAGR of 3.05 per cent during
2016-2026. Domestic two wheeler industry is expected to grow at 8-10 per cent during FY19. Also, Luxury
car market in India is expected to grow at a 25 per cent CAGR till 2020. The Government of India expects
automobile sector to attract US$ 8-10 billion in local and foreign investments by 2023.
Domestic Market Share of Automobile Sector:

14%
3%
3%
80%
Passenger vehicles Commercial Vehicle Three Wheelers Two Wheelers
Segment-wise Domestic Market Share in FY19 (%)

Automobile production in India:
23
35 Production
30.92
29.07
30
25.53
25 23.36 24.02
20.65 21.5
20
15
10
0
FY13 FY15 FY17 FY19
No. Of Vehicles Produced (In Millions)
Comparative domestic sales analysis:
30 Sales
26.27
24.86
25
21.86
19.72 20.47
20 17.79 18.42
15
10
0
FY13 FY15 FY17 FY19
Number of Automobile Sold in India (In Millions)
Automobile export trend:
24
5 Export 4.63
4.5 4.04
4 3.57 3.64
3.48
3.5 3.11
2.9
3
2.5
2
1.5
1
0.5
0
FY13 FY15 FY17 FY19
No. Of Vehicles Exported
Automobile industry life cycle analysis:

India’s automobile market has grown steadily over the last seven to eight years, with the exception of the
previous two years where the effects of the global downturn were felt, primarily in sales of commercial
vehicles. However, even during the downturn, the two wheeler and three wheeler segments, which were
until then experiencing high growth or gaining volumes.
SWOT analysis of automobile industry:

The analytical technique of SWOT analysis helps companies to determine and define several critical
characteristics: Strengths, Weaknesses, Opportunities, and Threats – SWOT analysis. What makes SWOT
analysis particularly powerful is that, with a little thought, it can help companies uncover opportunities
that they are well-placed to exploit.
Automobiles like Cars, bikes and public transport systems are one of the most important building blocks
for Society. Cars can be status symbol, they can be necessary transport, and they can be for sport and
whatnot. So what are the strengths, weaknesses, opportunities and threats in the automobile industry?
STP and SWOT Analysis
25
STP (Segmentation, Targeting, Positioning)
Segment Pers0nal and Commercial
Target Group Urban and Rural
Positioning C0mplete services
SWOT Analysis
1. Evolving industry
2. Continuous product innovation & technological advancement
Strengths Str0ng Capital Base
3. Growth shifting to Asian markets
4. Increasing demand of VFM vehicles
5. Increase in demand of luxury commercial vehicles
6. Manufacturing facilities in Asian nations to control cost
1. Cars recalled
Weaknesses
2. Bargaining power of consumers
3. Growth rate of Automobile industry is the in the hands of the
government
1. Introducing fuel-efficient vehicles

Opportunities 2. Strategic Alliances
3. Changing lifestyle & customer groups
4. Market expansion
1. Intense Competition
Threats
2. Volatility in the fuel Prices
3. Sluggish Economy
4. High fixed cost and investment in R & D
Porter’s Five Forces

26
Threat of new
enterants: High
Intensity of Bargaining power

rivalry: High of suppliers: High
Bargaining power
Threat of
of buyers:
substitutes: High
Moderate to High
Porter's Five Forces Analysis - Indian Automobile Industry:

A Porter's Five Forces Analysis explores five principal industry factors to determine the attractive of a given
industry in a given market. In this P5F exercise, we look at the automobile industry in India. This is
independent of any manufacturer. As such, it applies to every Indian car manufacturer.
In any P5F analysis, one must examine the following:
Threat Of new entrants High Capital costs, technology, distribution

network and availability of auto components
Threat of substitute High cost is required to switching over to substitute
and there are limited number of substitute for
customers
Bargaining Power of customers Very high due to availability of options
Bargaining power of suppliers Low due to stiff competitions
Competitors rivalry High expected to availability of options
India's auto industry is much like China's, as far as Porter's Five Forces is concerned. Like China's, the P5F
analysis ignores the massive future prospects which could indeed render this analysis irrelevant.
PESTLE Analysis: In this PESTLE analysis, the Political, Economic, Sociocultural, Technological, Legal,
and Environmental factors affecting the automotive industry, in the hopes of gaining some insight into the
future of this space.
POLITICAL  SAFETY REGULATIONS
 EMISSIONS POLICIES
ECONOMIC  GROWING DISPOSABLE INCOME
SOCIOCULTURAL  POPULARITY OF DRIVING
TECHNOLOGICAL  SELF-DRIVING CARS
 IMPROVED SAFETY
LEGAL  COPYRIGHT ISSUES
ENVIRONMENTAL  CARBON EMISSIONs
Company Analysis:
27
A company analysis incorporates basic info about the company, like the mission statement and apparition
and the goals and values. During the process of company analysis, an investor also considers the
company’s history, focusing on events which have contributed in shaping the company.
Company analysis can be done by taking into consideration:
1. Profit and Loss account
2. Balance sheet
3. Ratio analysis
Technical analysis:
Technical analysis is an analysis methodology for forecasting the direction of prices through the study of
past market data, primarily price and volume. Technical analysis attempts to use past stock price and
volume information to predict future price movements. Fundamentally, technical analysis shows in graphic
form investor sentiment, both greed and fear.
Assumption of technical analysis:
The market discount everything:
Whenever happens to a security is considered by the market. Even though technical analysis mostly
ignores fundamentals, the market will still price those in and thus reflect everything that has or could
influence the security.
The price moves in trends:
Price movement is considered to always follow a certain trend. The old saying “the trend is your friend”
means it is easier to trade with the trend. Most strategies and tools actually focus on trends, whether short
term or long term. Prices can be in an uptrend, downtrend or sideways trend which is also called ranging.
History trends to repeat itself:
Like history, price movements tend to repeat themselves. Technical analysis uses historical data to
determine future movement.
Data analysis and interpretation:

Maruti Suzuki India Ltd.:
Maruti Suzuki India Limited, subsidiary of Suzuki Motor Corporation, Japan, is India’s biggest car maker
with more than 50 per cent market share in the passenger vehicles segment during 2017-18. The company
recorded its highest ever sale in FY18 of about 1,779,574 units. During April-December 2018, the
company recorded revenue of Rs 66,254 crore (US$ 9.18 billion). India’s biggest car maker. About 50 per
cent market share in passenger vehicle segment during FY18. Highest ever sale of about 1.78 million in
FY18. Consolidated Total Income of Rs 88,630.10 crore (US$ 12.68 billion) in FY19.
Mahindra & Mahindra Ltd:
The Mahindra group’s automobile sector is in the business of manufacturing and marketing utility vehicles
and light commercial vehicles, including three wheelers. It is the market leader in utility vehicles in India
since inception, and currently accounts for about half of India’s market for utility vehicles. The automotive
sector continues to be a leader in the utility vehicles segment with a diverse portfolio that includes mass
transport as well as new generation vehicles like Scorpio, Bolero and recently launched Xylo.
Tractors.
Tata Motors Ltd:
Tata Motors was established in 1945 under the Tata Group. It is among the world’s leading manufacturers
of automobiles with around 81,090 employee strength. It was the market leader in commercial vehicles
segment with about 44 per cent market share in FY18. It is present in segments like cars and utility
vehicles, trucks and buses, and Defence. The company has extended its presence internationally through
entering into joint ventures (JV) like the strategic alliance with Fiat and Marcopolo. Tata Motors is present
in about 175 countries with research and development (R&D) centres in UK, Italy, India and South Korea.
Force motors Ltd:
Force Motors is a fully, vertically integrated automobile company, with expertise in design, development
and manufacture of the full spectrum of automotive components, aggregates and vehicles. Its range
includes small commercial vehicles, multi-utility vehicles (MUV), light commercial vehicles (LCV),
sports utility vehicles (SUV) and agricultural tractors.
Maruti Suzuki India Ltd:
28
Income Statement:
Profit & Loss account of Maruti Suzuki India ------------------- in Rs. Cr. -------------------
Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 86,020.30 81,994.40 77,266.20 65,054.60 55,133.60
Excise Duty 0.00 2,231.70 9,231.40 7,516.50 5,163.00

Net Sales 86,020.30 79,762.70 68,034.80 57,538.10 49,970.60
Other Income 2,532.60 2,032.40 2,290.10 1,454.90 831.60
Stock Adjustments -210.80 -40.70 380.10 -6.90 455.90

Total Income 88,342.10 81,754.40 70,705.00 58,986.10 51,258.10
Expenditure
Raw Materials 60,252.70 55,170.50 47,335.80 38,904.50 35,713.10
Power & Fuel Cost 861.70 671.90 517.20 692.60 712.30
Employee Cost 3,254.90 2,833.80 2,331.00 1,978.80 1,606.60
Selling and Admin Expenses 733.80 868.60 832.40 726.50 0.00
Miscellaneous Expenses 9,707.10 8,115.70 7,046.80 6,344.40 5,681.60
Total Expenses 74,810.20 67,660.50 58,063.20 48,646.80 43,713.60
Operating Profit 10,999.30 12,061.50 10,351.70 8,884.40 6,712.90
PBDIT 13,531.90 14,093.90 12,641.80 10,339.30 7,544.50
Interest 75.80 345.70 89.40 81.50 206.00
PBDT 13,456.10 13,748.20 12,552.40 10,257.80 7,338.50
Depreciation 3,018.90 2,757.90 2,602.10 2,820.20 2,470.30
Profit Before Tax 10,437.20 10,990.30 9,950.30 7,437.60 4,868.20
PBT (Post Extra-ord Items) 10,437.20 10,990.30 9,950.30 7,437.60 4,868.20
Tax 2,965.00 3,281.60 2,610.10 2,079.40 1,157.00
Reported Net Profit 7,500.60 7,721.80 7,350.20 5,364.30 3,711.20
Total Value Addition 14,557.50 12,490.00 10,727.40 9,742.30 8,000.50
Equity Dividend 2,416.60 2,265.60 1,057.30 755.20 755.20
Corporate Dividend Tax 496.80 461.20 215.20 153.80 153.80
Per share data (annualised)
Shares in issue (lakhs) 3,020.80 3,020.80 3,020.80 3,020.80 3,020.80
Earning Per Share (Rs) 248.30 255.62 243.32 177.58 122.85
Equity Dividend (%) 1,600.00 1,600.00 1,500.00 700.00 500.00
Book Value (Rs) 1,527.46 1,382.33 1,206.01 989.28 784.70
Source : Dion Global Solutions Limited
(Source: Moneycontrol.com)
 As per Profit and loss account Statement of Maruti Suzuki India Ltd., the net profit was increased in 2015 INR
3711.20cr to INR 7500.60cr in 2019.
 Net sales of the company increased from INR 49,970.60cr to INR 86,020.30cr in last 5 years.
 Equity Dividend has increased from INR 755.20cr to INR 2416.60cr in 5 years.
29
 Equity dividend percentage has changed from 500 to 1600.
 EPS has changed from 122.55 to 248.30 i.e. around 2 times increased.
Balance Sheet:
Balance Sheet of Maruti Suzuki India ------------------- in Rs. Cr. -------------------
Sources Of Funds
Total Share Capital 151.00 151.00 151.00 151.00 151.00
Equity Share Capital 151.00 151.00 151.00 151.00 151.00
Reserves 45,990.50 41,606.30 36,280.10 29,733.20 23,553.20
Networth 46,141.50 41,757.30 36,431.10 29,884.20 23,704.20
Secured Loans 149.60 0.00 0.00 0.00 0.00
Unsecured Loans 0.00 110.80 483.60 77.40 180.20
Total Debt 149.60 110.80 483.60 77.40 180.20
Total Liabilities 46,291.10 41,868.10 36,914.70 29,961.60 23,884.40
Application Of Funds
Gross Block 25,873.40 21,095.80 18,443.70 15,200.50 26,084.60
Less: Accum. Depreciation 10,465.60 7,736.80 5,151.00 2,690.50 13,825.30
Net Block 15,407.80 13,359.00 13,292.70 12,510.00 12,259.30
Capital Work in Progress 1,600.10 2,125.90 1,252.30 1,006.90 1,882.80
Investments 36,515.00 35,290.20 28,481.00 19,932.20 12,814.00
Inventories 3,325.70 3,160.80 3,262.20 3,132.10 2,615.00
Sundry Debtors 2,310.40 1,461.80 1,199.20 1,322.20 1,069.80
Cash and Bank Balance 178.90 71.10 13.80 42.20 18.30
Total Current Assets 5,815.00 4,693.70 4,475.20 4,496.50 3,703.10
Loans and Advances 3,593.90 3,901.30 3,749.40 3,994.40 2,891.80
Total CA, Loans & Advances 9,408.90 8,595.00 8,224.60 8,490.90 6,594.90
Current Liabilities 15,976.80 16,915.50 13,865.00 11,564.70 8,013.60
Provisions 663.90 586.50 470.90 413.70 1,653.00
Total CL & Provisions 16,640.70 17,502.00 14,335.90 11,978.40 9,666.60
Net Current Assets -7,231.80 -8,907.00 -6,111.30 -3,487.50 -3,071.70
Total Assets 46,291.10 41,868.10 36,914.70 29,961.60 23,884.40
Contingent Liabilities 11,614.90 10,181.20 9,642.10 9,368.70 9,232.50

Book Value (Rs) 1,527.46 1,382.33 1,206.01 989.28 784.70
 Total Debt of company has changed from 180.20 to 149.60 in last 5 years.
 Net block of company has increased from 12,259.30 to 15,407.80 in recent years.
 Company have negative working capital.
 Reserve have increased from 25,553.20 to 45,990.50 in recent years.
Ratio Analysis:
30
Key Financial Ratios of Maruti Suzuki India ------------------- in Rs. Cr. -------------------
Mar 19 Mar 18 Mar 17 Mar 16 Mar 15
Per Share Ratios

Basic EPS (Rs.) 248.30 255.62 243.32 177.58 122.85
Diluted EPS (Rs.) 248.30 255.62 243.32 177.58 122.85
Cash EPS (Rs.) 348.33 347.01 329.55 271.01 204.69
Book Value [ExclRevalReserve]/Share (Rs.) 1,527.86 1,382.69 1,206.33 989.54 784.91
Book Value [InclRevalReserve]/Share (Rs.) 1,527.86 1,382.69 1,206.33 989.54 784.91
Dividend / Share(Rs.) 80.00 80.00 75.00 35.00 25.00
Revenue from Operations/Share (Rs.) 2,848.35 2,641.15 2,252.81 1,905.24 1,654.66
PBDIT/Share (Rs.) 449.02 467.12 418.93 342.56 249.82
PBIT/Share (Rs.) 349.05 375.80 332.77 249.18 168.02
PBT/Share (Rs.) 346.54 364.35 329.81 246.48 161.20
Net Profit/Share (Rs.) 248.36 255.69 243.38 177.63 122.89
Profitability Ratios
PBDIT Margin (%) 15.76 17.68 18.59 17.98 15.09
PBIT Margin (%) 12.25 14.22 14.77 13.07 10.15
PBT Margin (%) 12.16 13.79 14.64 12.93 9.74
Net Profit Margin (%) 8.71 9.68 10.80 9.32 7.42
Return on Networth / Equity (%) 16.25 18.49 20.17 17.95 15.65
Return on Capital Employed (%) 21.60 25.83 26.42 17.35 15.00
Return on Assets (%) 11.91 13.00 14.34 12.79 11.06
Total Debt/Equity (X) 0.00 0.00 0.01 0.00 0.01
Asset Turnover Ratio (%) 136.68 134.34 132.74 137.19 148.93
Liquidity Ratios
Current Ratio (X) 0.87 0.51 0.66 0.71 0.93
Quick Ratio (X) 0.64 0.31 0.42 0.43 0.63
Inventory Turnover Ratio (X) 25.87 25.23 20.86 18.37 19.11
Dividend Payout Ratio (NP) (%) 32.21 29.34 14.38 14.07 20.34
Dividend Payout Ratio (CP) (%) 22.97 21.61 10.62 9.22 12.21
Earnings Retention Ratio (%) 67.79 70.66 85.62 85.93 79.66
Cash Earnings Retention Ratio (%) 77.03 78.39 89.38 90.78 87.79
Valuation Ratios
Enterprise Value (Cr.) 201,456.04 267,706.83 182,403.66 112,352.02 111,879.25
EV/Net Operating Revenue (X) 2.34 3.36 2.68 1.95 2.24
EV/EBITDA (X) 14.86 18.98 14.42 10.86 14.83
Market Cap/Net Operating Revenue (X) 2.34 3.36 2.67 1.95 2.24
Retention Ratios (%) 67.78 70.65 85.61 85.92 79.65
Price/BV (X) 4.37 6.41 4.99 3.76 4.71
Price/Net Operating Revenue 2.34 3.36 2.67 1.95 2.24
Earnings Yield 0.04 0.03 0.04 0.05 0.03


31
Income Statement:
Profit & Loss account of Mahindra and Mahindra ------------------- in Rs. Cr. -------------------
Income
Sales Turnover 53,614.00 49,444.99 47,383.74 43,638.90 41,133.11
Excise Duty 0.00 759.44 3,330.24 2,763.83 2,187.69
Net Sales 53,614.00 48,685.55 44,053.50 40,875.07 38,945.42
Other Income 1,650.39 1,478.04 1,890.66 925.60 1,184.66
Stock Adjustments 950.19 -194.87 -57.87 257.97 -323.63
Total Income 56,214.58 49,968.72 45,886.29 42,058.64 39,806.45
Expenditure
Raw Materials 39,404.79 34,119.77 32,184.57 29,886.99 27,811.64
Power & Fuel Cost 264.19 247.13 230.33 230.82 222.41
Employee Cost 2,980.22 2,840.89 2,714.43 2,348.72 2,316.93
Total Expenses 47,924.63 42,266.66 39,480.97 36,513.10 34,448.36
Operating Profit 6,639.56 6,224.02 4,514.66 4,619.94 4,173.43

PBDIT 8,289.95 7,702.06 6,405.32 5,545.54 5,358.09
Interest 113.39 112.20 159.59 186.05 214.30
PBDT 8,176.56 7,589.86 6,245.73 5,359.49 5,143.79
Depreciation 1,860.40 1,479.42 1,526.38 1,068.10 974.90
Profit Before Tax 6,316.16 6,110.44 4,719.35 4,291.39 4,168.89
PBT (Post Extra-ord Items) 6,316.16 6,110.44 4,719.35 4,291.39 4,168.89
Tax 1,528.97 1,746.36 1,079.22 1,079.89 847.78
Reported Net Profit 4,796.04 4,356.01 3,643.39 3,204.57 3,321.11
Equity Dividend 932.00 925.25 841.12 846.95 745.31
Equity Dividend (%) 170.00 150.00 260.00 240.00 240.00
Book Value (Rs) 275.17 243.68 431.26 361.03 309.85
 As per Profit and loss account Statement of Mahindra & Mahindra Ltd., the net profit was increased in 2015 INR
3321.11cr to INR 4796.04cr in 2019.
 Net sales of the company increased from INR 38945.42cr to INR 53,614cr in last 5 years.
 Equity Dividend has increased from INR 745.31cr to INR 932cr in 5 years.
 Equity dividend percentage has changed from 500 to 1600.
32
 EPS has changed from 240 to 170.
Balance Sheet:
Balance Sheet of Mahindra and Mahindra ------------------- in Rs. Cr. -------------------
Sources Of Funds
Share Application Money 0.00 0.00 0.25 0.00 0.00
Reserves 33,613.43 29,699.07 26,488.56 22,126.85 18,948.60
Networth 34,209.23 30,294.04 26,785.62 22,423.17 19,244.30
Secured Loans 2,480.32 0.00 12.20 0.00 0.00
Unsecured Loans 0.00 2,864.37 2,760.67 1,843.55 2,620.38
Total Debt 2,480.32 2,864.37 2,772.87 1,843.55 2,620.38
Gross Block 18,534.97 15,510.34 14,501.88 13,241.17 11,109.91
Less: Revaluation Reserves 0.00 0.00 0.00 0.00 10.79
Less: Accum. Depreciation 8,453.22 7,650.93 6,730.84 5,645.18 5,180.45
Net Block 10,081.75 7,859.41 7,771.04 7,595.99 5,918.67
Investments 22,016.03 20,582.97 17,908.40 13,547.40 13,138.16
Inventories 3,839.27 2,701.69 2,758.01 2,687.93 2,437.57
Sundry Debtors 3,946.30 3,172.98 2,938.84 2,511.64 2,558.03
Cash and Bank Balance 3,731.66 2,893.73 1,687.48 2,287.03 2,064.77
Provisions 1,571.60 1,529.20 1,389.93 1,064.78 2,068.78
Net Current Assets 2,171.98 1,587.32 1,838.65 1,561.18 629.09
Total Assets 36,689.55 33,158.41 29,558.49 24,266.72 21,864.68
Contingent Liabilities 5,622.13 4,124.73 5,268.73 4,475.89 5,419.91

Book Value (Rs) 275.17 243.68 431.26 361.03 309.85
 Total Debt of company has changed from 2620.38 to 2480.32 in last 5 years.
 Net block of company has increased from 5918.67to 10,081.75 in recent years.
 Company current assets have increased in recent years.
 Reserve have increased from 18,948.60 to 33,613.43 in recent years
33
Ratio Analysis:
Key Financial Ratios of Mahindra and Mahindra ------------------- in Rs. Cr. -------------------

Per Share Ratios
Basic EPS (Rs.) 40.29 36.64 30.69 53.05 56.23
Diluted EPS (Rs.) 40.13 36.47 30.54 52.80 53.66
Cash EPS (Rs.) 55.86 49.04 87.09 72.10 72.64
Book Value [ExclRevalReserve]/Share (Rs.) 287.09 254.58 451.22 378.36 325.40
Book Value [InclRevalReserve]/Share (Rs.) 287.09 254.58 451.22 378.36 325.58
Revenue from Operations/Share (Rs.) 449.93 409.14 742.12 689.71 658.53
PBDIT/Share (Rs.) 69.89 61.01 98.72 92.30 84.92
PBIT/Share (Rs.) 54.28 48.58 73.01 74.27 68.44
PBT/Share (Rs.) 53.08 51.28 79.56 72.29 70.49
PBDIT Margin (%) 15.53 14.91 13.30 13.38 12.89
PBIT Margin (%) 12.06 11.87 9.83 10.76 10.39
PBT Margin (%) 11.79 12.53 10.72 10.48 10.70
Return on Assets (%) 9.10 9.18 9.11 9.02 10.08
Liquidity Ratios
Current Ratio (X) 1.26 1.24 1.31 1.18 1.13
Quick Ratio (X) 0.99 1.03 1.02 0.91 0.86
Valuation Ratios
EV/EBITDA (X) 9.46 12.13 13.20 13.03 14.09
MarketCap/Net Operating Revenue (X) 1.49 1.81 1.73 1.75 1.80
Price/BV (X) 2.34 2.91 2.85 3.20 3.65
Earnings Yield 0.06 0.05 0.05 0.04 0.05

34
Tata Motors:
Income statement:
Profit & Loss account of Tata Motors ------------------- in Rs. Cr. -------------------
Income
Sales Turnover 69,202.76 59,624.69 49,054.49 47,383.61 39,524.34
Excise Duty 0.00 793.28 4,738.15 4,538.14 3,229.60
Net Sales 69,202.76 58,831.41 44,316.34 42,845.47 36,294.74
Other Income 2,312.62 602.91 647.47 921.14 1,477.66
Stock Adjustments -144.69 -842.05 252.14 -10.05 878.82
Total Income 71,370.69 58,592.27 45,215.95 43,756.56 38,651.22
Expenditure
Raw Materials 50,471.09 42,482.21 32,251.23 29,618.74 28,367.83
Power & Fuel Cost 0.00 545.12 483.48 430.77 395.88
Employee Cost 4,273.10 3,966.73 3,764.35 3,188.97 3,091.46
Other Manufacturing Expenses 571.76 474.98 454.48 418.27 437.47
Total Expenses 64,118.52 54,680.90 42,957.97 39,888.86 38,411.04
Operating Profit 4,939.55 3,308.46 1,610.51 2,946.56 -1,237.48

PBDIT 7,252.17 3,911.37 2,257.98 3,867.70 240.18
Interest 1,793.57 1,744.43 1,569.01 1,592.00 1,611.68
PBDT 5,458.60 2,166.94 688.97 2,275.70 -1,371.50
Depreciation 3,098.64 3,101.89 3,037.12 2,329.22 2,603.22
Profit Before Tax 2,359.96 -934.95 -2,348.15 -53.52 -3,974.72
PBT (Post Extra-ord Items) 2,359.96 -934.95 -2,348.15 -53.52 -3,974.72
Tax 378.33 87.93 76.33 -4.80 764.23
Reported Net Profit 2,020.60 -1,034.85 -2,429.60 -62.30 -4,738.95
Earning Per Share (Rs) 5.95 -3.05 -7.15 -0.18 -14.72
Equity Dividend (%) 0.00 0.00 0.00 10.00 0.00
Book Value (Rs) 65.26 59.40 62.32 68.51 46.10
 As per Profit and loss account Statement of Tata Motors, the profit was increased in 2015 from INR -4738.95cr
to INR 2020cr in 2019.
 Net sales of the company increased from INR 36,294.74cr to INR 69,202.76cr in last 5 years.
 Equity Dividend has no change as 0 is there in 5 years.
 EPS has changed from -14.72rs to 5.95rs.
35
Balance sheet:
Balance Sheet of Tata Motors ------------------- in Rs. Cr. -------------------
Sources Of Funds
Reserves 21,483.30 19,491.76 20,483.39 22,582.93 14,195.94
Networth 22,162.52 20,170.98 21,162.61 23,262.11 14,839.72
Secured Loans 17,537.53 2,444.36 3,124.12 3,925.63 4,803.26
Unsecured Loans 0.00 13,811.42 15,720.49 10,329.05 15,277.71
Total Debt 17,537.53 16,255.78 18,844.61 14,254.68 20,080.97
Gross Block 22,286.83 39,141.05 36,966.30 35,050.15 27,973.79
Less: Revaluation Reserves 0.00 0.00 0.00 0.00 22.87
Less: Accum. Depreciation 0.00 17,537.30 16,193.37 13,974.34 12,190.56
Net Block 22,286.83 21,603.75 20,772.93 21,075.81 15,760.36
Investments 16,867.37 16,763.57 17,295.81 16,963.32 16,987.17
Inventories 4,662.00 5,670.13 5,553.01 5,117.92 4,802.08
Sundry Debtors 3,250.64 3,479.81 2,128.00 2,045.58 1,114.48
Cash and Bank Balance 1,306.61 795.42 326.61 788.42 944.75
Provisions 2,430.28 1,872.40 1,369.35 1,201.16 2,717.28
Net Current Assets -5,740.74 -7,137.16 -5,332.51 -6,208.87 -3,867.63
Total Assets 39,700.05 36,426.76 40,007.22 37,516.79 34,920.69
Contingent Liabilities 7,246.04 5,269.63 4,787.17 0.00 9,882.65

Book Value (Rs) 65.26 59.40 62.32 68.51 46.10
 Total Debt of company has changed from 20,080.97 to 17,537.53 in last 5 years.
 Net block of company has changed from 15,760.36 to 22,286.83 in recent years.
 Reserve have increased from 14,195.94 to 21,483.30 in recent years
36
Ratio Analysis:
Key Financial Ratios of Tata Motors ------------------- in Rs. Cr. -------------------
Per Share Ratios

Basic EPS (Rs.) 5.94 -3.05 -7.15 -0.18 -14.72
Diluted EPS (Rs.) 5.94 -3.05 -7.15 -0.18 -14.72
Cash EPS (Rs.) 15.07 6.09 1.79 6.68 -6.63
Book Value [ExclRevalReserve]/Share (Rs.) 65.26 59.39 62.31 68.50 46.10
Book Value [InclRevalReserve]/Share (Rs.) 65.26 59.39 62.31 68.50 46.17
Revenue from Operations/Share (Rs.) 203.77 173.23 130.49 126.17 112.76
PBDIT/Share (Rs.) 22.07 14.33 7.63 12.81 2.00
PBIT/Share (Rs.) 12.94 5.19 -1.31 5.95 -6.09
PBT/Share (Rs.) 7.06 -2.79 -6.93 0.46 -12.35
Net Profit/Share (Rs.) 5.95 -3.05 -7.15 -0.18 -14.72
PBDIT Margin (%) 10.82 8.27 5.84 10.15 1.77
PBIT Margin (%) 6.35 2.99 -1.00 4.71 -5.39
PBT Margin (%) 3.46 -1.60 -5.31 0.36 -10.95
Net Profit Margin (%) 2.91 -1.75 -5.48 -0.14 -13.05
Return on Networth / Equity (%) 9.11 -5.13 -11.48 -0.26 -31.93
Return on Capital Employed (%) 11.57 5.04 -1.19 5.31 -16.02
Return on Assets (%) 3.31 -1.74 -4.12 -0.10 -9.48
Liquidity Ratios
Current Ratio (X) 0.58 0.62 0.59 0.63 0.42
Quick Ratio (X) 0.37 0.38 0.33 0.36 0.19
Valuation Ratios
EV/EBITDA (X) 10.06 26.03 68.21 33.26 304.63
Price/BV (X) 2.67 5.51 7.48 5.64 11.93
Earnings Yield 0.03 -0.01 -0.02 0.00 -0.03
37
Force Motors:
Income statement:
Profit & Loss account of Force Motors ------------------- in Rs. Cr. -------------------
Income
Sales Turnover 3,652.10 3,523.42 3,494.57 3,485.19 2,638.90
Excise Duty 0.00 100.82 425.58 425.39 275.18
Net Sales 3,652.10 3,422.60 3,068.99 3,059.80 2,363.72
Other Income 82.35 70.09 82.48 71.44 65.78
Stock Adjustments 34.25 51.32 -71.79 65.19 6.12
Total Income 3,768.70 3,544.01 3,079.68 3,196.43 2,435.62
Expenditure
Raw Materials 2,892.76 2,685.59 2,202.15 2,312.13 1,721.18
Power & Fuel Cost 48.86 48.23 44.55 45.71 38.98
Employee Cost 418.13 386.55 350.08 303.69 277.73
Miscellaneous Expenses 29.79 67.14 95.54 157.77 184.95
Total Expenses 3,407.91 3,206.48 2,729.47 2,850.88 2,222.84
Operating Profit 278.44 267.44 267.73 274.11 147.00

PBDIT 360.79 337.53 350.21 345.55 212.78
Interest 15.33 6.67 5.54 4.32 6.55
PBDT 345.46 330.86 344.67 341.23 206.23
Depreciation 150.92 129.26 113.08 91.93 81.28
Profit Before Tax 194.54 201.60 231.59 249.30 124.95
PBT (Post Extra-ord Items) 194.54 201.60 231.59 249.30 124.95
Tax 46.63 53.28 55.08 69.86 23.58
Reported Net Profit 147.18 146.95 179.92 179.42 101.36
Total Value Addition 515.15 520.89 527.32 538.76 501.67
Equity Dividend 13.18 13.18 0.00 13.18 6.59
Shares in issue (lakhs) 131.76 131.76 131.76 131.76 131.76
Equity Dividend (%) 100.00 100.00 100.00 100.00 50.00
Book Value (Rs) 1,468.45 1,365.17 1,263.95 1,123.57 999.43
 As per Profit and loss account Statement of Force Motors, the profit was increased in 2015 from INR 101.36cr to
INR 147cr in 2019.
 Net sales of the company increased from INR 2363.72cr to INR 3652.10cr in last 5 years.
 Equity Dividend has change from 6.59 to 13.18 in 5 years.
38
 EPS has changed from 76.93rs to 111.70rs.
Balance sheet:
Balance Sheet of Force Motors ------------------- in Rs. Cr. -------------------
Sources Of Funds
Reserves 1,921.69 1,785.61 1,652.23 1,467.26 1,303.70
Networth 1,934.87 1,798.79 1,665.41 1,480.44 1,316.88
Secured Loans 256.50 0.00 0.00 0.00 0.00
Unsecured Loans 0.00 0.00 198.46 2.64 10.73
Total Debt 256.50 0.00 198.46 2.64 10.73
Gross Block 2,503.62 2,112.92 2,012.00 1,797.53 1,559.89
Less: Accum. Depreciation 1,287.79 1,164.46 1,100.58 1,004.21 922.34
Net Block 1,215.83 948.46 911.42 793.32 637.55
Capital Work in Progress 371.80 369.17 220.26 0.00 239.76
Investments 28.19 10.60 9.67 1.23 1.23
Inventories 503.56 477.10 437.67 547.51 392.55
Sundry Debtors 166.52 241.91 115.10 150.40 108.68
Cash and Bank Balance 3.20 40.93 234.22 317.64 303.03
Total Current Assets 673.28 759.94 786.99 1,015.55 804.26
Loans and Advances 546.80 430.86 671.82 279.16 288.88
Current Liabilities 591.83 668.50 682.64 759.82 585.09
Provisions 52.70 51.74 53.65 50.95 58.98
Total CL & Provisions 644.53 720.24 736.29 810.77 644.07
Net Current Assets 575.55 470.56 722.52 483.94 449.07
Total Assets 2,191.37 1,798.79 1,863.87 1,278.49 1,327.61
Contingent Liabilities 297.43 0.00 0.00 219.08 156.11

Book Value (Rs) 1,468.45 1,365.17 1,263.95 1,123.57 999.43
 Total Debt of company has changed from 10.73cr to 255.60cr in last 5 years.
 Net block of company has changed from 637.55cr to 1215.83 in recent years.
 Reserve have increased from 1303.70 to 1921.69 in recent years
39
Ratio analysis:
Key Financial Ratios of Force Motors ------------------- in Rs. Cr. -------------------
Per Share Ratios

Basic EPS (Rs.) 111.70 111.53 136.55 136.17 76.93
Diluted EPS (Rs.) 111.70 111.53 136.55 136.17 76.93
Cash EPS (Rs.) 226.18 209.57 222.31 205.90 138.59
Book Value [ExclRevalReserve]/Share (Rs.) 1,468.03 1,364.79 1,263.59 1,123.33 999.22
Book Value [InclRevalReserve]/Share (Rs.) 1,468.03 1,364.79 1,263.59 1,123.33 999.22
Revenue from Operations/Share (Rs.) 2,770.94 2,596.81 2,328.52 2,321.71 1,793.55
PBDIT/Share (Rs.) 273.19 255.05 267.58 262.19 161.45
PBIT/Share (Rs.) 158.68 156.98 181.78 192.43 99.78
PBT/Share (Rs.) 147.05 151.92 178.30 189.15 94.80
PBDIT Margin (%) 9.85 9.82 11.49 11.29 9.00
PBIT Margin (%) 5.72 6.04 7.80 8.28 5.56
PBT Margin (%) 5.30 5.85 7.65 8.14 5.28
Return on Assets (%) 5.18 5.83 6.91 7.82 5.14
Liquidity Ratios
Current Ratio (X) 1.66 1.64 1.54 1.70 1.67
Quick Ratio (X) 0.89 0.94 1.05 0.93 1.01
Valuation Ratios
EV/EBITDA (X) 6.93 10.59 16.67 9.98 7.29
Price/BV (X) 1.16 2.00 3.55 2.54 1.40
Earnings Yield 0.07 0.04 0.03 0.05 0.06

40
Comparative Ratio Analysis:
Ratio for Year 2015
2015 Maruti Suzuki M&M Tata Force
Current Ratio 0.93 1.13 0.42 1.67
Quick Ratio 0.63 0.86 0.19 1.01
Return on C. E. 15 13.85 -16.02 7.35
Return on Assets 11.06 10.08 -9.48 5.14
Total Debt/Equity 0.01 0.14 1.35 0.01
Basic EPS 122.85 56.23 -14.72 76.93
Dividend/Share 25 12 0 5
Net profit/Share 122.89 56.16 -14.72 75.91
Ratio for Year 2016

Current Ratio 0.71 1.24 0.63 1.67
Quick Ratio 0.43 1.03 0.36 1.01
Return on C. E. 17.35 12.49 5.31 11.37
Return on Assets 12.79 9.02 -0.10 7.82
Basic EPS 177.58 53.05 -0.18 136.17
Net profit/Share 177.63 54.07 -0.18 136.14
Ratio for Year 2017

Current Ratio 0.65 1.31 0.59 1.54
Quick Ratio 0.42 1.02 0.33 1.05
Return on C. E. 26.42 14.28 -1.19 14.10
Return on Assets 14.34 9.11 -4.12 6.91
Basic EPS 243.32 30.69 -7.15 136.55
Net profit/Share 243.38 61.38 -7.15 136.51
Ratio for Year 2018

Current Ratio 0.51 1.24 0.62 1.64
Quick Ratio 0.31 1.03 0.38 0.94
Return on C. E. 25.83 16.95 5.04 11.25
Return on Assets 13 9.18 -1.74 5.83
Basic EPS 255.62 36.64 -3.05 111.53
Dividend/Share 80 7.50 0 10
Net profit/Share 255.69 36.61 -3.05 111.49
Ratio for Year 2019

Current Ratio 0.87 1.26 0.58 1.65
Quick Ratio 0.64 0.99 0.37 0.89
Return on C. E. 21.60 16.86 11.57 9.58
Return on Assets 11.91 9.10 3.31 5.18
Basic EPS 248.30 40.29 5.94 111.70
Dividend/Share 80 8.50 0 10
Net profit/Share 248.36 40.25 5.95 111.67
41
Current Ratio
2
1.67 1.67 1.64 1.65
1.54
1.5 1.24 1.31 1.24 1.26
1.13
0.93 0.87
1 0.71 0.63 0.65 0.59 0.62 0.58
0.42 0.51
0.5
0
2015 2016 2017 2018 2019
Maruti Suzuki M&M Tata Force
Interpretation:
 This ratio is a measure of the firm’s short term solving of firm’s liquidity. Company ability to pay
off all its debts. It indicates financial health of the company.
 Force Motors has maintained a positive and stable current ration with a small downtrend variation
in current year, indicating the very health working capital and financial position but at the same
time it has efficiently using its current assets.
 After Force Motors, Mahindra & Mahindra has maintained a positive and stable current ration
with a small uptrend variation in current year, indicating the very health working capital and
financial position but at the same time it has efficiently use it current assets.
 Maruti Suzuki is not able to keep the current ratio at stable level and in current year it is 0.87
which is quite lower as compared to M & M and Force Motors.
Quick Ratio
1.2
1.01 1.03 1.01 1.02 1.05 1.03 0.99
1 0.94
0.86 0.89
0.8
0.63 0.64
0.6
0.43 0.42
0.36 0.38 0.37
0.4 0.33 0.31
0.19
0.2
0
2015 2016 2017 2018 2019
Interpretation:
 A Quick Ratio is also known as acid test ratio. the quick ratio is measure of how well a company
can meet its short-term financial liabilities, it measures the firm's ability to meet the short-term
obligations from its most liquid assets
 It can be calculated as (cash+ marketable securities+ Account receivable) / Current Liabilities.
 The last 5 years Quick ratio of Maruti Suzuki, M & M, Tata and Force is 0.63, 0.86, 0.19 and
1.01 respectively. The company with quick ratio is greater than 1.0 are sufficiently able to meet
short liabilities.
 Higher Quick ratio means a more liquid current position. The quick liquidity ratio is an
42
important means of company’s ability to cover it liabilities with relatively liquid Assets.
Return on C. E.
30 26.42 25.83
21.6
20 17.35 16.95 16.86
1513.85 14.28 14.1
12.49 11.37 11.25 11.57
9.58
10 7.35 5.31 5.04
0
2015 2016 2017
-1.19 2018 2019
-10
-20 -16.02
Interpretation:
 Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is used. In other words, the ratio measures how well a
company is generating profits from its capital.
 The ROCE ratio is considered an important profitability ratio and is used often by investors
when screening for suitable investment candidates.
 ROCE is a useful metric for comparing profitability across companies based on the amount of
capital they use. There are two metrics required to calculate return on capital employed: earnings
before interest and tax and capital employed.
 Return on capital employed of Maruti Suzuki is quite good as compared to other companies.
 After that M & M is also giving good return on c. e. as we compare with all years.
Return On Assets
20
14.34 13
15 12.79 11.91
11.06
10.08 9.02 7.82 9.11 9.18 9.1
10 6.91 5.83
5.14 5.18
5 3.31
0
2015 -0.1
2016 2017 2018 2019
-5 -1.74
-4.12
-10
-9.48
-15
Interpretation:
 Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
ROA gives a manager, investor, or analyst an idea as to how efficient a company's management
is at using its assets to generate earnings. Return on assets is displayed as a percentage.
 Return on Assets (ROA) is an indicator of how well a company utilizes its assets, by
determining how profitable a company is relative to its total assets.
 ROA is best used when comparing similar companies or comparing a company to its previous
43
performance.
 ROA takes into account a company’s debt, unlike other metrics, such as Return on Equity
(ROE).
 ROA of Maruti Suzuki is in up and down trend which quite near to 11 and below 14.
 ROA of M & M is not much big change as compare to all recent years.
 ROA of Tata is going drastically in uptrend as we compare to all recent years but in 2015 it was
quite not good.
Total Debt/Equity
1.5 1.35
1 0.89
0.81 0.79
0.61
0.5
0.14 0.08 0.1 0.12 0.09 0.13
0.01 0.01 0 0 0.01 0 0 0 0.07
0
2015 2016 2017 2018 2019
Interpretation:
 The debt-to-equity (D/E) ratio is calculated by dividing a company’s total liabilities by its
shareholder equity. These numbers are available on the balance sheet of a company’s financial
statements.
 The ratio is used to evaluate a company's financial leverage. The D/E ratio is an important metric
used in corporate finance.
 It is a measure of the degree to which a company is financing its operations through debt versus
wholly owned funds.
 More specifically, it reflects the ability of shareholder equity to cover all outstanding debts in the
event of a business downturn.
 As we can see in chart Tata motors D/E ratio is quite high as compared to others.
 In 2015, Tata motors having more D/E ratio as compared to other years.
300
Basic EPS
255.62 248.3
243.32
250
200 177.58
150 136.17 136.55

122.85 111.53 111.7
100 76.93
56.23 53.05
30.69 36.64 40.29
50
5.94
0
2015 -0.18
2016 2017 -3.05
2018 2019
-50 -14.72 Maruti Suzuki M &-7.15
M Tata Force
Interpretation:
44
 It measures the profit available to the equity shareholders as per share bonds. It is computed by
dividing earnings available to the equity shareholders by the total number of equity share
outstanding.
 EPS= Earnings after tax - Preferred Dividends / Equity Shares outstanding.
 EPS of Maruti Suzuki is increasing each year showing consistent growth. Force Motors is also
showing consistent growth but at a lower scale. Earnings per share tells you how well a company
is generating profit for its shareholders. When earnings per share is negative, it means the
company is losing money.
 EPS also depends upon the government tax policy; tax rate is lower than benefit for the
shareholder.
Dividend/Share
100
80 80
80 75
60
40 35
25
20 12 12 10 13 10 10 10
5 7.5 8.5
0 0 0 0 0
0
2015 2016 2017 2018 2019
Interpretation:
 Dividend per share (DPS) is the sum of declared dividends issued by a company for every
ordinary share outstanding.
 The figure is calculated by dividing the total dividends paid out by a business, including interim
dividends, over a period of time by the number of outstanding ordinary shares issued.
 A company's DPS is often derived using the dividend paid in the most recent quarter, which is
also used to calculate the dividend yield.
Net Profit/Share
300 255.69
243.38 248.36
250
200 177.63
122.89 136.14 136.51
150 111.49 111.67
100 75.91 61.38
56.16 54.07 40.25
36.61
50 5.95
0
-50 2015
-14.72 -0.18
2016 2017
-7.15 -3.05
2018 2019
Interpretation:
45
 Mahindra & Mahindra Ltd has high liquidity position as compare to Maruti Suzuki Ltd.
 Mahindra & Mahindra Ltd has more ability to pay its short term and long term obligation as
compare to Maruti Suzuki Ltd.
 Maruti is paying high dividend to its shareholders as compare to Mahindra & Mahindra.
 Investor is looking for regular income can invest in Maruti Suzuki Ltd.
Technical Analysis:
Maruti Suzuki Ltd:
 Line chart:
For 1 year Period (Source: Moneycontrol.com)
For 5 year Period (Source: Moneycontrol.com)
46
Interpretation:
 In this prices of shares are directly affected because of Corporate Action are taken like
 Board Meetings
 AGM/EGM
 Bonus
 Rights
 Splits
 Dividends:
 For the year ending March 2019, Maruti Suzuki India has declared an equity dividend of 1600.00%
amounting to Rs 80 per share. At the current share price of Rs 6754.05 this results in a dividend
yield of 1.18%.
 The company has a good dividend track report and has consistently declared dividends for the last
5 years.
 Candlestick Chart:
 Price are in uptrend so better option to keep it for more time.
47
 Line Chart:
For 1 year period (Source: Moneycontrol.com)
Interpretation:
48
 Board Meetings: The last board meeting of Mahindra and Mahindra was held on August 7, 2019
for Quarterly Results
 AGM/EGM: The last AGM of Mahindra and Mahindra was held on August 7, 2019. The book
closure was from July 20, 2019 to August 7, 2019.
 Bonus: The last bonus that Mahindra and Mahindra had announced was in 2017 in the ratio
Of 1:1.The share has been quoting ex-bonus from December 21, 2017.
 Rights: The last rights shares that Mahindra and Mahindra had issued was in 1992 in the ratio of 1:5
at a premium of Rs 0 per share.The share has been quoting ex-rights from June 26, 1992.
 Splits: Mahindra and Mahindra had last split the face value of its shares from Rs 10 to Rs 5 in
2010.The share has been quoting on an ex-split basis from March 29, 2010.
 Dividends:
 For the year ending March 2019, Mahindra and Mahindra has declared an equity dividend of
170.00% amounting to Rs 8.5 per share. At the current share price of Rs 562.70 this results in a
dividend yield of 1.51%.
 The company has a good dividend track report and has consistently declared dividends for the last
5 years.
 Candlestick Chart:
 Technical analysis is a trading discipline employed to evaluate investments and identify trading
opportunities in price trends and patterns seen on charts.
 In chart green candles represent prices are moving up and red candles represent prices are moving
down.
 The price are in downtrend so it is better to sell it
49
Tata Motors:
Line Chart:
For 1 Year Period (Source: Moneycontrol.com)
Interpretation:
 Board Meetings: The last board meeting of Tata Motors was held on July 25, 2019 for Quarterly
Results
50
 AGM/EGM: The last COM of Tata Motors was held on July 30, 2019.
 Bonus: The last bonus that Tata Motors had announced was in 1995 in the ratio of 3:5.The share has
been quoting ex-bonus from October 4, 1995.
 Rights: The last rights shares that Tata Motors had issued was in 2015 in the ratio of 6:109 at a
premium of Rs 448 per share.The share has been quoting ex-rights from April 6, 2015.
 Splits: Tata Motors had last split the face value of its shares from Rs 10 to Rs 2 in 2011.The share
has been quoting on an ex-split basis from September 12, 2011.
 Dividends:
Tata Motors had last declared a dividend of 10.00% for the year ending March 2016.
Candlestick Chart:
down.
 Recently prices are going in downtrend and after that price are moving little bit uptrend.
51
Force Motors Ltd:
Line chart:

Interpretation:
52
 Board Meetings: The last board meeting of Force Motors was held on July 26, 2019 for Quarterly
Results
 AGM/EGM: The last AGM of Force Motors was held on September 19, 2019. The book closure
was from September 14, 2019 to September 19, 2019.
 Bonus: The last bonus that Force Motors had announced was in 1986 in the ratio of 1:1.
 Rights: The last rights shares that Force Motors had issued was in 1999 in the ratio of 1:3 at a
premium of Rs 90 per share.
 Splits: Force Motors has not split the face value of the share so far.
 Dividends: For the year ending March 2019, Force Motors has declared an equity dividend of
100.00% amounting to Rs 10 per share. At the current share price of Rs 1102.25 this results in a
dividend yield of 0.91%.
Candlestick chart:
down.
 As you can see the prices are going in downtrend at start but after little bit uptrend.
53
CHAPTER IX: CONCLUSIONS & SUGGESTIONS
 As we all know India is fastest growing economies of the world. The automotive industry is facing
tremendous and unprecedented changes these days. On a global scale, the assets of top ten automotive
corporations accounts for 28% of assets of the world’s top 50 companies, 29% of their employment
and 30% of their total sales. The Indian auto industry is one of the largest in the world with an annual
production of 23.37 million vehicles in FY14-15, following a growth of 8.68 per cent over the last year.
 The success of new products and a strong launch pipeline will add to the overall market share. The
automobile industry is highly competitive and competition is likely to further intensify in view of the
continuing globalization and consolidation in the worldwide automotive industry. On the domestic front,
Maruti Suzuki competes against Tata Motors, Mahindra & Mahindra, Hyundai Motors, and Honda. The
competition within the industry is increasing further with new players entering the market and some
smaller players catching up.
 The tractor industry in India is dominated by 3 player’s viz. M&M, TAFE and Escorts who together
control 70% of the overall tractor market. M&M is the market leader with 42% market share. M&M has
maintained its market share in domestic tractor industry since acquisition of Swaraj Tractors in FY 2009..
 According to Fundamental analysis the fundamentals of Maruti Suzuki ltd is very strong.
 As compare to Maruti Suzuki the fundamentals of Mahindra & Mahindra is not that much of strong.
 Technical Charts indicates that the future price moments of Maruti Suzuki is upward.
 According to technical chart the price moments of Mahindra & Mahindra ltd is downward.
Suggestion:
 It should be profitable to buy and hold the share of Maruti Suzuki Limited for long period.
 The investors should sell the share of Mahindra & Mahindra Ltd.
54
CHAPTER X: KEY LEARNINGS AND CONTRIBUTION TO THE HOST ORGANISATION
From the above data, theory, tables, diagrams and graphs it is to be observed that Maruti Suzuki is doing well
in the market in which the vehicles of Maruti are always preferred by the people as they are low cost and have
more features. Also Maruti has maintained its standards in capital market by maintaining its reputation in the
market and holding the interests of the investors due to which investors of Maruti Suzuki are having more
faith in the company and its shares.
Due to economic analysis it is to be understood that how companies are getting benefitted or also how
companies are getting adversely affected due to economic factors like GDP, inflation rates, interest rates and
also tax rates which is also been mentioned in the SWOT and Pestle analysis.
Industrial analysis done in report gives us the knowledge of how industry is working currently and its growth
in near future. Also the participants of the industry is discussed in the report.
Company analysis gives us the detailed information of the preferred companies for e.g. Maruti Suzuki and
Mahindra & Mahindra. About the company, its products and also the quantitative indicators of company
analysis which are the financial indicators and operational efficiency indicators. Financial indicators are the
profitability indicators and financial position indicators, analyzed through the income and balance sheet
statement of the company mentioned in the report. Qualitative factors are the management reputation, name
of the company, operational plans of the company for the future and so on as revealed in the
director’s/auditor’s reports and also the information revealed by the management to the media.
Ratio analysis provides the information of the investment, profitability, working of management, utilization
of funds, debt, dividends paid to shareholders, Faith of investors, resources, risk, etc. all the information is
furnished with graphical representations.
According to this study Mahindra & Mahindra is lagging behind Maruti Suzuki due to some factors which
are to be filled by the companies as early as possible which may harm the company’s financial position and
would not compete in future with other automotive companies so far.
It is recommended to Mahindra & Mahindra that it should make the optimum use of allocated resources and
should gain the faith of customers for making more equity investments and also should lower the risk and
debt as fast as possible to raise the bar of profitability by making proper utilization of funds and resources.
Foreign automobile companies like BMW, Audi, Mercedes, and Toyota are already running good in the
Indian market and some steps should be taken earlier before they overtake the Indian companies and get a
hold on the Indian market.
55
BIBLIOGRAPHY/ REFERENCES
Books:
 Security analysis & Portfolio Management, S. Kevin, PHI Learnings Pvt Ltd
References:
 www.moneycontrol.com
 www.nseindia.com
 www.bseindia.com
 www.marutisuzuki.com
 www.mahindra.com
 www.tatamotors.com
 www.forcemotors.com
 www.ibef.org
 www.ijsr.net
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A Summer Internship Project Report on

Study on Warehouse Operations

Roll No. Supply Chain Management - 07

Under the guidance of

A study conducted for

E-Squire Healthcare and Logistics

Indira Institute of Management

Nayanesh Pundlik Wankhede

Prof. Dr. Pandit Mali Prof. Vinayak Dravid

Place: Pune Vinayak Vasantrao Kumbhar

Sr. No. Content Page No.

3 Organizational Profile and Business Overview 27

4 Outline of Task Undertaken 30

6 Objectives and Scope Of Project 40

8 Analysis and Findings 49

Key Learning and Contribution To The Host

Objectives of the project:

Learning from the project:

Fundamental analysis includes:

TYPES OF FUNDAMENTAL ANALYSIS:

QUALITATIVE FACTOR – THE INDUSTRY

CHAPTER II: INDUSTRY/ SECTOR PROFILE

Indian Automobile Industry

 Mahindra & Mahindra

 Hyundai Motor India

 Honda Cars India

Mission and Vision of the company

Health Insurance business:

Awards and recognitions:

 Implication of existing problem or task on the host organization-

Limitations of the study:

Gross domestic product:

Agriculture and Monsoon:

Domestic Market Share of Automobile Sector:

Passenger vehicles Commercial Vehicle Three Wheelers Two Wheelers

Segment-wise Domestic Market Share in FY19 (%)

No. Of Vehicles Produced (In Millions)

Comparative domestic sales analysis:

Number of Automobile Sold in India (In Millions)

Automobile export trend:

No. Of Vehicles Exported

Automobile industry life cycle analysis:

SWOT analysis of automobile industry:

STP and SWOT Analysis

Segment Pers0nal and Commercial

Target Group Urban and Rural

Positioning C0mplete services

1. Introducing fuel-efficient vehicles

Porter’s Five Forces

Intensity of Bargaining power

Porter's Five Forces Analysis - Indian Automobile Industry:

Threat Of new entrants High Capital costs, technology, distribution

Data analysis and interpretation:

12 mths 12 mths 12 mths 12 mths 12 mths

Sales Turnover 86,020.30 81,994.40 77,266.20 65,054.60 55,133.60

Excise Duty 0.00 2,231.70 9,231.40 7,516.50 5,163.00

Other Income 2,532.60 2,032.40 2,290.10 1,454.90 831.60

Stock Adjustments -210.80 -40.70 380.10 -6.90 455.90

Raw Materials 60,252.70 55,170.50 47,335.80 38,904.50 35,713.10

Power & Fuel Cost 861.70 671.90 517.20 692.60 712.30

Employee Cost 3,254.90 2,833.80 2,331.00 1,978.80 1,606.60

Selling and Admin Expenses 733.80 868.60 832.40 726.50 0.00

Miscellaneous Expenses 9,707.10 8,115.70 7,046.80 6,344.40 5,681.60