Académique Documents
Professionnel Documents
Culture Documents
RESEARCH REPORT
ON
Submitted To Submitted By
Mr. Devesh Gupta Arpit Kumar Gupta
Roll no-1708570037
MBA 4th Sem.
MUZAFFARNAGAR
1
PREFACE
Using a new pattern based on proper integration of formal teaching and actual practice the
M.B.A. program of S.D.C.M.S, MUZAFFARNAGAR has it course for six weeks industrial training, after the
second semester, so as the students could begin to have the feeling of business environment right in the
beginning. Practical training constitutes an integral part of management studies. Training gives an
opportunity to the students to expose themselves to the industrial environment, which is quite different
from the classroom teaching. The practical knowledge is an important suffix to the theoretical
knowledge. One cannot rely merely upon theoretical knowledge. Is has to be coupled with practical for
it to be fruitful. The training also enables the management students to themselves see the working
conditions under which they have to work in the future.
After Liberalization of Indian economy sense is changed because of Multi National Companies
continuously coming with their technical expertise and improved management concepts. Industrial
activity in India has become a thing to watch and I really wanted to be a part of it and it is essential for
me being a finance student.
I consider myself lucky to get my summer training. I underwent six weeks of training. It really
helped me to get a practical insight into the actual business environment and provide me an opportunity
to make my Financial Management concepts more clear. The advantage of this sort of integration which
promotes guided adjustment to corporate culture, functional, social and other norms with formal
teaching are:
2
ACKNOWLEDGEMENT
No task is single man’s effort. Any job in this world however trivial or tough cannot be
accomplished without the assistance of others. An assignment puts the knowledge and experience of an
individual to litmus test. There is always a sense of gratitude that one likes it express towards the
persons who helped to change an effort in a success. The opportunity to express my indebtedness to
people who have helped me to accomplish this task.
I am thankful to director sir Dr. ALOK KUMAR GUPTA (Principal), for granting me the
permission to undertake the study. I would like to convey thanks to Mr. Devesh Gupta for ready
assistance, keen interest and valuable suggestions.
Last but not least it would be unfair if I don’t extend my indebtedness to my parents and all my
friends for their active cooperation which was of great help during the course of my training project.
3
DECLARATION
I, Arpit Kumar Gupta of MBA 2 Year, hereby declare that the project title “An Analysis of Equity Price
Share Behavior” is completed and submitted under the guidance of Mr. Devesh Gupta. This is my
original work and not been published or printed for any other purpose. The imperial finding in this
project is based on the data collected by me.
4
CONTENTS
1. Introduction
2. Objectives of study
3. Scope of the study
4. Review of Literature
5. Research Methodology
6. Analysis of Data
7. Findings
8. Conclusion
9. Recommendation & Suggestion
10. Limitations
Bibliography
5
CHAPTER NO.1
INTRODUCTION OF STUDY
6
Introduction
Stock markets play a pivotal role in growing industries and commerce of a country that
eventually affect the economy. Its importance has been well acknowledged in industries and
investors perspectives. The stock market avail long-term capital to the listed firms by pooling
funds from different investors and allow them to expand in business and also offers investors
alternative investment avenues to put their surplus funds in. The investors carefully watch
the performance of stock markets by observing the composite market index, before
investing funds.
This paper analyses the equity share prices of different companies of different sectors.Stock
returns for 5companies listed in five different indices on National Stock Exchange (NSE) i.e.
Indian Capital Market have been considered. The data for five years have been collected
from 1st January 2009 to 31st the December 2013 and were analyzed with the help of
moving averages.
The Economy of the country is mainly based on the development of the corporate sectors. A
better understanding of the stock market trend will facilitate allocation of financial sources to
the most profitable investment opportunity. The behavior of stock returns will enable the
investors to make
7
appropriate investment decisions. The fluctuations of stock returns are due to several
economic and non- economic factors. The study is aimed at ascertaining the behavior of share
returns. This project analyses the equity share fluctuations in India Selected Industry. It also
measures the strength of the trend and the money involved in investing in the stocks. Simple
moving average model is applied for selected companies which would give the investor a sell
signal or buy signal.
In India most of the industries require huge amount of investments. Funds are raised mostly
through the issue of share. An investor is satisfied from the reasonable return from investment
in shares. Speculation involves higher risks to get return on the other hand investment
involves no such risks and returns will be fair. An investor can succeed in his investment only
when he is able to select the right shares. The investors should keenly watch the situations like
market price, economy, company progress, returns, and the risk involved in a share before
taking decision on a particular share. This study made will help the investors know the
behavior of share prices and thus can succeed.
8
Literature review
Bennet, James A.et.al (2001) have conducted a study on "can money flow predict is defined
as the difference between up stick and down stick dollar trading volume. The study says that
despite little published research regarding its usefulness, the measure has become an
increasingly popular technical indicator because of its own means. The study summarizes its
most important finding that money flow appears to predict across- sectional variation in future
returns. Their predictive ability is sensitive, however, to the method of money flow
measurement (ex. The exclusion or inclusion of block trades) and the Forecast horizon
Daigler Robert T.et.Al., (1981) have conducted a study on the development and testing of
trading rules on the New York stock Exchange which are based on the discriminate Function.
The study analysis the ability of daily technical indicators to predict future changes in the
"standard and poor's 500 index". The study also signifies that the Technical indicators possess
predictive ability to the extent that investor's possess predictive ability to the extent that
investors believe they contain information on Future Market developments, and/or to the
extent that the indicators reflect changing expectations among market participants. The study
summarizes that the initial analysis of the relationship between daily technical data and future
market movements is accomplished by examining the statistical difference between the group
means (computed via the usual F test applied to the group means estimated from the
discriminate function) of predicted "up days" versus predicted "down days" ("Up" and "down"
days are define shortly). The statistical analysis is extended by classifying the observations
into groups.
Micko Tanaka Y amawakiet. Al., (2007)have conducted a study on the Adaptive use of
Technical Indicators for predicting the Intra-Day price movements. The researcher has
proposed a system to select the best combination of technical indicators and their parameter
values adaptively by learning the patterns from the tick-wise financial data. In this paper, the
researcher has shown that this system gives good predictions on the directors of motion with
the hitting rate at 10 ticks ahead of the decision point as high as 70% for foreign exchange
rates (FX) in five years from kl1996 to 2000 and 8 different stock prices in NY SE market in
1993 The study concludes that the tick-wise price time series carry a long memory of the
order of at least a few minutes, whichisequivalent to 10 ticks.
9
Grewal S.S and NavjotGrewall (1984) revealed some basic investment rules and rules for
selling shares. They warned the investors not to buy unlisted shares, as Stock Exchanges do
not permit trading in unlisted shares. Another rule that they specify is not to buy inactive
shares, ie, shares in which transactions take place rarely. The main reason why shares are
inactive is because there are no buyers for them. They are mostly shares of companies, which
are not doing well. A third rule according to them is not to buy shares in closely-held
companies because these shares tend to be less active than those of widely held ones since
they have a fewer number of shareholders. They caution not to hold the shares for a long
period, expecting a high price, but to sell whenever one earns a reasonable reward
Jack Clark Francis2 (1986) revealed the importance of the rate of return in investments and
reviewed the possibility of default and bankruptcy risk. He opined that in an uncertain world,
investors cannot predict exactly what rate of return an investment will yield. However he
suggested that the investors can formulate a probability distribution of the possible rates of
return.
He also opined that an investor who purchases corporate securities must face the possibility of
default and bankruptcy by the issuer. Financial analysts can foresee bankruptcy. He disclosed
some easily observable warnings of a firm's failure, which could be noticed by the investors to
avoid such a risk.
PreethiSingh3(1986) disclosed the basic rules for selecting the company to invest in. She
opined that understanding and measuring return md risk is fundamental to the investment
process. According to her, most investors are 'risk averse'. To have a higher return the investor
has to face greater risks. She concludes that risk is fundamental to the process of investment.
Every investor should have an understanding of the various pitfalls of investments. The
investor should carefully analysis the financial statements with special reference to solvency,
profitability, EPS, and efficiency of the company.
David.L.Scott and William Edward4 (1990) reviewed the important risks of owning
common stocks and the ways to minimize these risks. They commented that the severity of
financial risk depends on how heavily a business relies on debt. Financial risk is relatively
easy to minimize if an investor sticks to the common stocks of companies that employ small
10
amounts of debt.
They suggested that a relatively easy way to ensure some degree of liquidity is to restrict
investment in stocks having a history of adequate trading volume. Investors concerned about
business risk can reduce it by selecting common stocks of firms that are diversified in several
unrelated industries.
Nabhi Kumar Jain6 (1992) specified certain tips for buying shares for holding and also for
selling shares. He advised the investors to buy shares of a growing company of a growing
industry. Buy shares by diversifying in a number of growth companies operating in a different
but equally fast growing sector of the economy.
He suggested selling the shares the moment company has or almost reached the peak of its
growth. Also, sell the shares the moment you realize you have made a mistake in the initial
selection of the shares. The only option to decide when to buy and sell high priced shares is to
identify the individual merit or demerit of each of the shares in the portfolio and arrive at a
decision.
L.C.Gupta8 (1992) revealed the findings of his study that there is existence of wild
speculation in the Indian stock market. The over speculative character of the Indian stock
market is reflected in extremely high concentration of the market activity in a handful of
shares to the neglect of the remaining shares and absolutely high trading velocities of the
speculative counters.
He opined that, short- term speculation, if excessive, could lead to "artificial price". An
artificial price is one which is not justified by prospective earnings, dividends, financial
strength and assets or which is brought about by speculators through rum ours, manipulations,
etc. He concluded that such artificial prices are bound to crash sometime or other as history
has repeated and proved.
Sunil Damodar'o (1993) evaluated the 'Derivatives' especially the 'futures' as a tool for short-
term risk control. He opined that derivatives have become an indispensable tool for finance
managers whose prime objective is to manage or reduce the risk inherent in their portfolios. He
disclosed that the over- riding feature of 'financial futures' in risk management is that these
11
instruments tend to be most valuable when risk control is needed for a short- term, ie, for a year
or less. They tend to be cheapest and easily available for protecting against or benefiting from
short term price. Their low execution costs also make them very suitable for frequent and short
term trading to manage risk, more effectively
Valuation of Shares:
Valuation is the processes that links & assist to determine the worth of an
asset. It can be applied to expected benefits from real as well as financial assets &
securities to determine their worth at a given point of time. This key input the
over the holding /ownership period. In addition to the total cash flow
estimates their timing his also required to identify the return expected
2. The required return is used in the valuation process the incorporate risk
into the analysis risk denotes the chance that expected outcome would
not be realized. The live of risk associated with a given cash flow has a
Value that is the greater the risk the lower the value & vice years
3. Expected return in term of cash flow together with their time & risk in
12
1.1 Objectives of Study :-
To analyze the share price behavior of the industries. Automobile, Banking, IT, Oil
Exploration and Refinery, Telecommunication
To predict the day to day Fluctuations in the stock market
13
1.2 Hypothesis of Study : -
14
CHAPTER NO.2
CONCEPTUAL STUDY
15
2.1 Meaning & Definition of Equity Shares:-
All shares are those which do not enjoy any special rights in respect of payment of
dividend & repayment of capital. Equity shares are risk bearing shares. All shares holder
control the affairs of the company because they have right to vote.
4. The holders of equity share have voting right in proportion to the paid up equity
5. The equity share capital is sometimes referred to us the “Risk Bearing Capital”.
6. It is also referred to us permanent capital because equity are not redeemed in the
1. Preference shares
2. Equity shares
16
Equity Share:
Shares which are not preference shares are termed as “Equity Share”. These
The Sum total of the nominal value of shares of a company is called its shares
“It is the sum total of the nominal value of equity share of a company”.
“It is the sum total of the nominal value of preference share of company”.
17
registered with the registrar of companies. This capital is also named
b. Issued Capital-
“It is the nominal value of that part of the authorized capital which is
allotted for cash as well as for consideration other than cash. But it
cannot exceed the authorized capital. If issued capital is less than the
capital”.
C. Subscribed Capital-
“It means that part of the issued capital which is allotted for cash. No
capital and unless then shares are subscribed and paid for there
D. Called up Capital-
“It means that part of the allotted share capital which has been called
up by the company”.
E. Paid up Capital-
18
2.5 Valuation of Shares:-
students of accountancy. The basic principles are by a no means difficult but their
technicalities involved.
This method is also called balance sheet method or asset, backing method
determine as to how much amount per share, for this purpose it is necessary to determine
19
the net assets of the business as on that date net assets mean the total of third party
liabilities as only realizable assets are to be taken the item such as preliminary expenses
discount on debenture/ shares underwriting commission profit & loss Account (Debit
Balance) etc. appearing under the heading miscellaneous expenditure & loss are not to be
taken in to consideration similarly realizable value & not the book value are to be
considered.
The intrinsic value per share is arrived at by dividing value of net assets by the
Important:
considered.
2. Depreciation Fund
3. Realizable Value
If realizable value of any assets are not mentioned, their book – value are to
Net Asset
Intrinsic Value of Each share =
No . of Equity shares
20
B. Market Value Method of Yield Basis Method
Rate of Divided
Market Value = X Paid up value of share
Normal rateof return
Example:-
12
Market Value = X 100
15
= 80%
Rate of profit
Market Value = × Paid up value of share
Normal rateof return
Profiy Available
Rate of Profit = ×100
Paid up Value of Share
21
Example:-
Equity share capital is 10000 equity share of Rs.10each, Rs.8 paid up & the profit
available is Rs.20000. The normal rate of return 20% Calculate the market value
per share
Profi t Available
Rate of Profit = × 100
Paid up value of share
20000
= ×100
80000
= 25%
25
Market Value = ×8
20
1. Capitalization Method
Example:-
each (Rs. 1000000) & the profit earned by the company Rs.150000 & the
22
normal rate of return is 10% than they market value as per capitalization
150000
= ×100
10
= 1500000
Capital Value
Market Value Per share =
No of Equity Shares
150000
=
10000
There are some accountants who do not prefer to use intrinsic value & the
yield value method for ascertaining the correct value of share. They
however, prescribed the fair value method is the main of intrinsic value &
yield value method & the some provided a better indication about the value
23
CHAPTER NO.3
PROFIE OF FIVE COMPANIES OF
STUDY
24
3.4 Meaning & Definition of Company:-
economics gain of its members. However, in law any association of person for any
common object can be registered as company. The object need not be economy gain
of its members.
Example :-
knowledge etc.
Definition
worth to a common stock & employ it for a company purpose. The common stock so
contributed is denoted in money & is the capital of the company. The person who
The companies Act defines a company as “A company formed & registered under
25
3.2 Profile of Companies
27406063
iv) Fax (020)-27407380
v) E-Mail ID Investo@bajaauto.co.in
vi) Board of Directors Rahul Bajaj (Chairman)
J.N.Godrej (Director)
SumanKirloskar (Director)
26
i) Name of Company SUDARSHAN CHEMICAL
INDUSTRIES LIMITED
Mr.S.N.Indamdar (Director)
paid up
viii) Rate of Dividend Rs 12.50 Per Share
27
i) Name of Company MELSTAR INFORMATION
TECHNOLOGIES LIMITED
ii) Registered Office Melstar House, G4, MIDC Cross Road
Mr.AnojMenon (Director)
vii) Equity Share Capital 14283139 equity shares of Rs.10 each fully
paid up
viii) Rate of Dividend Nil
4] ACC LIMITED
28
Mumbai - 400020
iii) Telephone (022)-33024321
Mr.M.L.Narula (Director)
Capital up
viii) Rate of Dividend Nil
ii) Registered Office 3rd Floor Maker Chambers, 222, Nariman Point
Mumbai - 4000020
iii) Telephone (022)-22785000
29
iv) Fax (022)-22785111
v) E-Mail ID invester relation@rill.com.
vi) Board of Directors Mr. Mukesh D. Ambani (Chairman)
Capital up
viii) Rate of Dividend Nil
CHAPTER NO.5
DATA COLLECTION & PRESNTATI
30
4.1 Data Presentation:-
Balance Sheet
31
Less Depreciation 1912.45
Reserve & Surplus Add Capital Work 1478.43 1548.29
date
Profit & Loss A/c 2515.48 Technical Know 69.86 4.28
Sundry Debtors
Current Liabilities 167.99 Cash & Bank
1189.64
9220.36 9220.36
32
2. SUDARSHAN CHEMICAL INDUSTRIES LIMITED
Balance Sheet
33
Debtors
Current Liabilities & 1004824094 Cash & Bank 1746882158
Provision Liabilities 176644931 1181469025 Balance
Provision 123498124
Other Current
Assets Loans &
Advance 65221227
463224931 3773380702
57069884112 57069884112
Balance Sheet
34
Assets Loans &
48423327 Advance
Profit & Loss A/c 32534292 78453366
22731659
219866044 219866044
4. ACC LIMITED
Balance Sheet
35
11273.61 11273.61
Balance Sheet
36
Balance
Loans and Advance 202.41
874.66 9719.29
22464.23 22464.23
Balance Sheet
37
9247.53 9274.53
Balance Sheet
7191045639 7191045639
38
3. MELSTAR INFORMATION TECHOLOGIE LIMITED
Balance Sheet
39
4. ACC LIMITED
Balance Sheet
12060.25 12060.25
40
Balance Sheet
Depreciation 12884.14
1140.86 10611.65
Balance
Loans and Advance 403.81
802.77 11453.15
24134.93 24134.93
41
Thus in this chapter 20 Balance sheets of five companies of study for two years
CHAPTER NO.5
ANALYSIS OF DATA
42
Analysis of Data:-
Valuation of Shares:
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
43
Capital Work in Progress 69.86
Technical Know How 4.28
Investment 4795.28
Sundry Debtors 362.76
Cash & Bank Balance 556.49
Other Current Assets 216.42
Loan & Advances 1189.64
Inventories 547.28 9920.36
Less- Liabilities
Deferred Tax Liabilities 29.71
Current Liabilities 2526.65
Provision 1528.63 4084.99
Net Assets 5235.37
523537000
Intrinsic Value =
289367020
= 1.80
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
333670000
= ×100
2893670200
= 11.54%
Profit available
b:Rate of Return = ×100
Net Assets
44
333670000
= ×100
2893670200
= 63.73%
11.54
Market Value = ×10
263.54
=1.80
1.80+1.81
=
2
=1.80
45
2. SUDRSHAN CHEMICAL INDUSTRIES LIMITED
Net Assets
A.Intrinsic Value Method =
No of Equity Shares
46
b. No of Equity Shares = 26922775
4404541048
Intrinsic Value =
6922775
= 636.23
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
324299577
= ×100
69227750
= 468.45%
Profit available
b:Rate of Return = ×100
Net Assets
324299577
= ×100
4404541048
= 7.36%
468.45
Market Value = ×10
7.36
=636.48
47
Intrinsic value+ Market value
C:Fair Value =
2
6366.23+636.48
=
2
=636.35
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
148711058
Intrinsic Value =
14282139
= 10.39
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
48
Profit available
a:Rate of Profit = ×100
Paid up value of share
14626249
= ×100
142831390
= 10.24%
Profit available
b:Rate of Return = ×100
Net Assets
14626249
= ×100
148711058
= 9.83%
10.24
Market Value = ×10
9.83
=10.41
1041+1041
=
2
=10.41
49
4.ACC LIMITED
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
699331000
Intrinsic Value =
1875000
= 37.20
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
112094000
= ×100
187950000
50
= 59.64%
Profit available
b:Rate of Return = ×100
Net Assets
112094000
= ×100
699331000
= 16.02%
59.64
Market Value = ×10
16.02
=37.22
37.20+37.22
=
2
=37.21
51
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
1463681000
Intrinsic Value =
1140000
= 128.39
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
33040000
= ×100
11400000
= 2.89%
52
Profit available
b:Rate of Return = ×100
Net Assets
33040000
= ×100
1463681000
= 2.25%
2.89
Market Value = ×10
2.25
=128.44
128.39+ 128.44
=
2
=128.41
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
53
Inventories 547.28 9247.53
Less- Liabilities
Deferred Tax Liabilities 29.71
Current Liabilities 670.82
Provision 1555.8
Trade Payable 1789.26
Net Assets 5201.94
52194000
Intrinsic Value =
289367020
= 1.79
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
333973000
= ×100
2893670200
= 11.54%
Profit available
b:Rate of Return = ×100
Net Assets
333973000
= ×100
520194000
= 64.20%
54
11.54
Market Value = ×10
64.20
=1.79
1.79+ 1.79
=
2
=1.79
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
Less- Liabilities
Current Liabilities 823157861
Provision 192896199
Trade Payable 948512434 1964566494
Net Assets 5226479145
55
d. No of Equity Shares = 6922775
5126479145
Intrinsic Value =
6922775
= 754.97
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
361510643
= ×100
5226479145
= 522.20%
Profit available
b:Rate of Return = ×100
Net Asse ts
361510643
= ×100
5226479145
= 6.91%
522.20
Market Value = ×10
6.91
=755.71
56
Intrinsic value+ Market value
C:Fair Value =
2
754.91+755.71
=
2
=755.34
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
89951943
Intrinsic Value =
14282139
= 6.29
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
57
Profit available = Profit during the year 14617030
Profit available
a:Rate of Profit = ×100
Paid up value of share
14617030
= ×100
142831390
= 10.23%
Profit available
b:Rate of Return = ×100
Net Assets
14617030
= ×100
89951943
= 16.24%
10.23
Market Value = ×10
16.24
=6.29
6.29+6.29
=
2
=6.29
58
4.ACC LIMITED
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
770300000
Intrinsic Value =
18795000
= 40.98
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
132675000
= ×100
187950000
= 70.59%
59
Profit available
b:Rate of Return = ×100
Net Assets
132675000
= ×100
770300000
= 17.22%
70.59
Market Value = ×10
17.22
=40.99
40.98+ 40.99
=
2
=40.98
60
Net Assets
A. Intrinsic Value Method =
No of Equity Shares
1347312000
Intrinsic Value =
1140000
= 118.85
Rate of Profit
B. Market Value Method = × Paid up value of share
Rate of return
Profit available
a:Rate of Profit = ×100
Paid up value of share
153822000
= ×100
11400000
= 13.49%
61
Profit available
b:Rate of Return = ×100
Net Assets
153822000
= ×100
1347312000
= 11.41%
13.39
Market Value = ×10
11.41
=118.22
118.85+118.22
=
2
=118.53
CHAPTER NO. 6
OBSERVATIONS & TESTING OF
HYPOTHESE
62
Observations & Testing of Hypotheses:-
A. Observations
63
Shares (Rs) Shares (Rs) (Rs)
2 Sudarshan 636.23 636.48 636.35 1
Chemical
Industiries Ltd.
5 Reliance 128.39 128.44 128.41 2
Company Ltd
4 ACC Ltd 37.20 37.22 37.21 3
3 Melstar 10.41 10.41 10.41 4
Information
Technologies
Ltd.
1 Bajaj Auto Ltd. 1.80 1.81 1.80 5
Chemical
Industiries Ltd.
5 Reliance 118.85 118.22 118.53 2
Company Ltd
4 ACC Ltd 40.98 41.04 41.01 3
3 Melstar 6.29 6.29 6.29 4
64
Information
Technologies
Ltd.
1 Bajaj Auto Ltd. 1.79 1.79 1.79 5
Comment:
B) Testing of Hypotheses
But remaining two companies intrinsic value is less than face value
65
CHAPTER NO.7
SUGGESTIONS
66
SUGGESTIONS
The following suggestions can be made after study of valuation of shares of five
companies.
Out of five companies under study first two companies are having good
performance relating to shares, because their fair value of shares is less than sufficient. So
value of shares.
67
Limitations of the study
This study is limited to some selected stocks ofAutomobile, Banking, IT, Oil
Exploration and Refinery, Telecommunication sectors
Dividend is not considered in the calculation of Return. Price change is only taken into
consideration
68
BIBLOGRAPHY
BOOKS :-
1. Jain P.K. and Khan M.Y. Financial Management text, problems & Cases, Tata
Revised Edition 2001, Vikas Publication house Private Limited ,New Delhi.
3. Dr. Joshi C.M. and PatkarM.G. ,Advanced Accounting , 1 st Edition as per new
syllabus, Feb-2003.
5. S.K.R. Paul, Corporate Accounting , New Central Agency Public Ltd. Published
May 2005
69
70